A biotechnology company in the clinical phase cassava (NASDAQ:SAVA) has a lot to write at home today. SAVA shares rose nearly 20% after a new article tried to clear her name from worrying allegations.
So what do you need to know?
If you remember, Cassavo was first accused of manipulating data with a petition from citizens filed with the U.S. Food and Drug Administration (FDA) this summer. As a result, SAVA shares fell and have remained 45% lower in the last six months. Kasava experienced a significant increase in November, but it was tragically short-lived. Unfortunately, SAVA felt another retreat when rumors of further data manipulation spread last month.
Labaton Sucharow, a stock law firm, filed a lawsuit with the FDA on Nov. 17 claimed the company The results of the treatment of Cassava’s Alzheimer’s disease were evidence of “seemingly indisputable manipulation of data”. They claimed that the results of his clinical studies were the result of patients picking Cassava cherries. Important for the story, Sucharow represents doctors who hold short positions in SAVA shares
However, instead of today’s news, Cassava can breathe peacefully … at least for now. Diary neuroscience published a new article stating that he found no evidence of manipulation of Simufilam-related data.
What has increased the stock of Bulls pushing SAVA today?
Interestingly, this is not the first study to clean up Cassava. In October, an anonymous doctor of molecular biology investigated the legitimacy of petitions against Simufilam. They came to a similar conclusion as neuroscience.
“In summary, we find that allegations of fraud are in the citizens’ petition full of malice as they continue to try to discredit Simufilam and cassava.
Cassava certainly appreciates the independent studies that have clarified her allegations. President and CEO of Cassava Remi Barbier commented in studies. He also took the opportunity to criticize those who would obstruct Cassava’s research:
“Another scientific journal cleared us of accusations. … This reinforces my belief that false and misleading accusations of scientific violations against us are simply designed to enrich those who make them. People who want to take advantage of false accusations may not understand the damage done to the Alzheimer’s community, or they may simply not care.
At least the SAVA share has certainly seen the benefits of these latter claims.
At the date of publication, Shrey Dua did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.