Cassava Sciences (SAVA) Plunges 10.74% Amid Alzheimer’s Setbacks, SEC Scrutiny, Governance Turmoil

Cassava Sciences (SAVA) fell 10.74% on October 10, 2025, marking its lowest closing level since October 2025, with an intraday decline of 11.46%. The sharp drop followed a series of clinical, regulatory, and governance challenges that have eroded investor confidence in the biotech firm. Despite recent insider buying by CEO Richard Barry, which briefly lifted the stock in September, the company’s prospects remain clouded by setbacks in its Alzheimer’s drug program and ongoing legal scrutiny.

The CEO’s purchases of 245,113 shares in late September—totaling $541,921—initially spurred an 18% rally, signaling optimism about the company’s direction. However, this momentum faded as investors grappled with the discontinuation of Cassava’s Alzheimer’s program after two failed Phase 3 trials. The trials, which showed no significant efficacy for simufilam, compounded concerns following a $40 million SEC settlement in 2024 over alleged data manipulation. These developments have intensified skepticism about the company’s scientific credibility and management stability.

Compounding the uncertainty, Cassava’s strategic pivot to explore simufilam in Tuberous Sclerosis Complex (TSC)-related epilepsy remains unproven. While preclinical data in June 2025 suggested potential, no clinical trial results have yet validated this new focus. The lack of alternative revenue streams and ongoing operational losses—$63.1 million in 2024—highlight the company’s reliance on speculative research and its need for further capital. Analysts remain divided, with some noting the CEO’s confidence as a positive signal, while others caution against overreliance on a single drug candidate.

Regulatory and governance risks persist, including unresolved SEC investigations and the resignation of former CEO Remi Barbier in July 2025. These events have fueled criticism from short sellers and raised questions about the company’s ability to rebuild trust. While Cassava aims to present new data at investor conferences in October 2025, the path to recovery hinges on demonstrating scientific rigor and delivering tangible progress in its repurposed research pipeline.