Cassava Sciences (NASDAQ: SAVA) Soars 46.98% as CEO's $534K Investment and TSC Pivot Fuel 2-Day 49.56% Rally

Cassava Sciences (NASDAQ: SAVA) surged 46.98% on Tuesday, marking its highest close since September 2025, with an intraday gain of 57.76%. The stock has rallied 49.56% over two trading days, driven by renewed investor confidence following strategic corporate developments.

The rally followed a significant insider investment by CEO Richard Barry, who purchased over 245,000 shares totaling approximately $534,743. This move underscored Barry’s belief in the company’s undervalued potential amid its recent challenges, including the discontinuation of its lead Alzheimer’s drug and a 2024 SEC settlement. Insider buying by top executives is often interpreted as a strong signal of conviction in a company’s future trajectory.

Cassava’s strategic pivot to repurposing its drug candidate simufilam for Tuberous Sclerosis Complex (TSC)-related epilepsy has reshaped investor narratives. Preclinical trials in TSC mouse models demonstrated anti-seizure activity, with the first human study slated for early 2026. This shift aligns with industry trends of repositioning failed candidates for alternative indications, offering a potential pathway for value recovery after the Alzheimer’s program’s collapse.

Leadership additions further bolstered credibility, including the appointment of Dr. Joseph Hulihan as Chief Medical Officer and Dr. Angélique Bordey to lead preclinical research. These hires, combined with positive data presented at the 2025 TSC Alliance Meeting, reinforced the scientific rationale for simufilam’s new focus. The company also highlighted its $128.6 million cash reserves as of December 2024, providing a financial runway to advance its TSC initiative.

While regulatory scrutiny remains a backdrop—stemming from past data manipulation allegations—the absence of new governance issues and Barry’s investment signaled progress in rebuilding trust. The stock’s volatility reflects the biotech sector’s reliance on high-stakes clinical outcomes and insider signals. Investors will now closely watch the TSC trial results and the company’s ability to manage burn rate amid its capital-intensive development plans.