Cassava Sciences Inc (NASDAQ:SAVA) reported a net loss of $1.1 million in Q2 2020. The company expects to use $5 million in 2020 for its operations. It is a debt-free company. Cassava holds cash equivalents and a cash balance of $25.3 million by the end of Q2 2020.
Increased exposure to institutional investors
Cassava stock is added to the Russell 3000 and Russell 2000 Indexes in June 2020. It improves exposure to institutional investors and other participants in the market.
Phase 2b clinical trial using PTI-125
Cassava concluded Phase 2b clinical trial for its lead drug candidate PTI-125 to treat patients with mild to moderate Alzheimer’s disease. It is a placebo-controlled, randomized, and double-blind clinical study. The company obtained a $1.1 million grant from NIH (National Institute of Health) for this study.
According to previous reports, PTI-125 is well tolerated and safe to use. The company conducted initial bioanalysis of the study at an outside lab. It missed the primary endpoint. An effect of the drug is observed on CSF (cerebrospinal fluid) levels of tau protein. It also affected the assessments of other biomarkers. Therefore, data obtained from an initial analysis is highly varying and has no correlation to the biomarkers’ changes in a 28-day clinical trial.
Given the above, Cassava decided to conduct a detailed analysis of the Phase 2b study, which includes an investigation of the effect of PTI-125 on cognition. The company expects to release this clinical study’s outcome in September 2020 after a comprehensive analysis of initial data.
CEO of Cassava, Remi Barbier, said the company conducted Phase 2b clinical trial properly. He feels that the initial data analysis is to be checked again before releasing the final results asserting correctness.
A multi-center and open-label study
Cassava commenced a multi-center and open-label clinical trial in March 2020 using PTI-125 by administering 100mg daily twice for one year. It is a continuous study and will enroll 100 people suffering from mild to moderate Alzheimer’s disease. The company already completed 50% enrollment for this study.
The progressive brain disorder – Alzheimer’s disease destroys thinking skills and memory in humans. No proven therapies exist for this disease in the market. Around 5.8 million people in the US have Alzheimer’s disease.