Why did SAVA's EPS remain stagnant in 2024?

Cassava Sciences' (SAVA) EPS remained stagnant in 2024 due to a combination of factors related to its financial performance and strategic shifts:

1. **Alzheimer's Drug Failure**: The most significant factor contributing to SAVA's financial challenges in 2024 was the failure of its lead drug, Simufilam, in the Phase-3 REFOCUS-ALZ study for Alzheimer's disease. This failure led to the discontinuation of the Alzheimer's development program and a significant negative impact on the company's financials.
2. **Net Income Loss**: The company reported a net loss of $24.34 million for the year ended December 31, 2024. This loss, coupled with the EPS being negative, indicates that the company's expenses exceeded its revenues during the period, primarily due to the costs associated with the failed Alzheimer's drug trial and the strategic shift in focus to other indications.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|SAVA|SAVA.O|Cassava Sciences|2024 Q1|203.18075069012403|2.5043E7|186|
|SAVA|SAVA.O|Cassava Sciences|2024 Q2|123.33560812860176|6155000|186|
|SAVA|SAVA.O|Cassava Sciences|2024 Q3|-8.935324158902187|-2.7943E7|186|
|SAVA|SAVA.O|Cassava Sciences|2024 Q4|-31.92313208088341|-2.7597E7|186|

3. **Strategic Pivot**: Cassava Sciences is pivoting its focus to other central nervous system applications, including investigating Simufilam as a potential treatment for epilepsy in tuberous sclerosis. This strategic shift suggests a redirection of resources and efforts, which may have impacted financial performance in the short term.
4. **Financial Position**: Despite the negative EPS and net loss, the company maintained a strong financial position with approximately $128.6 million in cash and cash equivalents as of December 31, 2024. This financial resilience allows the company to continue pursuing its strategic initiatives, including exploring new therapeutic applications for Simufilam.

In conclusion, Cassava Sciences' (SAVA) EPS remained stagnant in 2024 primarily due to the failure of its lead drug in the Phase-3 study and the subsequent strategic shift in focus, which together resulted in negative net income. However, the company's strong financial position provides a buffer to navigate these challenges and pursue new opportunities.