Cassava Sciences under scrutiny following a damaging FDA report

Cassava Sciences Inc (NASDAQ: SAVA) is in focus today after it again came under scrutiny over research involving its Alzheimer’s drug.

FDA report questions Alzheimer's drug trial results of $SAVA

An FDA (Food & Drug Administration) report that Science magazine obtained last night questions the integrity of the study that tested a candidate Alzheimer’s drug of the pharmaceutical firm.

Cassava Sciences is yet to comment on that critical inspection report.

The news arrives shortly after $SAVA reported 50 cents a share loss for its fourth financial quarter versus 47 cents per share a year ago.   

Cassava Sciences stock is now down more than 25% versus its year-to-date high in early January.

Cassava Sciences stock technicals suggest further downside ahead

The FDA report underscores several issues that should have been sufficient to tag trial results as unreliable and inaccurate.

Still, Cassava Sciences publicly reported them as positive and proceeded with a Phase III study that is currently ongoing. According to Matthew Schrag of Vanderbilt University:

“As I’ve said before, I think the Simufilam clinical trials should be shut down.”

Note that $SAVA could tumble further in the coming weeks considering its Aroon Indicator (technical indicator) now suggests further downtrend ahead. Its Momentum Indicator also entered the below 0 level last month that suggests bearish sentiment as well. Still, Wall Street has a consensus “buy” rating on Cassava Sciences stock.