In this article I´ll be talking about why SAVA stock price is dropping and what´s in store for the coming months.
First a quick update on Axsome Therapeutics. I published an article a month ago highlighting catalysts coming for Axsome Therapeutics. Back then AXSM stock was trading around $30 and it went past $45,
so more than 50% profit possible on this swing trade.
Cassava Sciences Inc (SAVA) Stock News + Forecast 2022
Now let´s get back to SAVA stock…
Why is SAVA stock dropping?
SAVA stock has dropped in the last few days and this happened for 2 main reasons:
- Earlier this week there was an event attended by the company’s CEO Remi Barbier. I didn´t watch it but this fireside chat has generated a lot of buzz on Twitter with many people saying it was a disaster. CEO has not addressed many important questions and enrollment rates for the Phase 3 studies were very disappointing. This triggered a lot of selling.
- In the last few days Nasdaq as also been dropping and IMO that also added to the sell off.
Last year, and even earlier this year, SAVA stock has provided a lot of opportunities to make money swing trading it. I took advantage on some of those opportunities and I hope my followers have made money too.
Currently I own a small position as I bought shares again in early January. I could have sold for profit in the February spike above $60 but I was waiting for a short squeeze. Looking back, selling at that point would have been an excellent move but I can´t predict the future and I guess no one can.
At the moment SAVA stock is trading close to 52W lows and more than 80% down from its 52W highs.
So, what´s next for SAVA stock?
First of all, citizen petition filed against the company it’s part of the past.
Until this moment, Cassava Sciences has achieved the best clinical data for Alzheimer´s Disease. It´s the only company that has shown cognition improvement for longer than six months in clinical trials for AD.
Despite slow enrollment rates, Simufilam Phase 3 studies are progressing.
Besides the two Phase 3 studies the company also has a CMS study undergoing. This trial has 69 patients enrolled of the 100 it plans to enroll.
So in the coming months we should see CMS results and also more phase 2 results being disclosed, and if results are positive we can see SAVA stock back on track.
At this point, Cassava Sciences has more than $200M in cash with $0 of debt and given it´s expected quarter burn rate of $15 million, the company has enough cash to operate for sixteen quarters or four years, which should be more than enough to complete its Simufilam studies.
Based on 5 Wall Street analysts offering 12 month price targets for Cassava Sciences, the average price target is $98.80, which implies a potential upside of more than 250%.