- The shares of clinical-stage biotech Cassava Sciences ( NASDAQ: SAVA ) crashed ~44% in the pre-market after Reuters reported on Wednesday that the U.S. Justice Department had opened a criminal investigation linked to its experimental Alzheimer’s therapy simufilam.
- The investigation deals with whether the Texas-based biotech manipulated research results for simufilam, the news agency said, citing two people familiar with the inquiry.
- The Justice Department officials handling the probe are specialized in investigating whether companies or individuals have misled or defrauded multiple parties, including investors, or government agencies,
- The probe, similar to any other investigation conducted by the Justice Department, could lead to criminal charges or close without any charges being brought against the company.
- Kate Watson Moss, a lawyer for Cassava ( SAVA ), refused to comment on the ongoing probe.
- "To be clear: Cassava Sciences vehemently denies any and all allegations of wrongdoing," Watson Moss noted, adding that the firm "has never been charged with a crime, and for good reason - Cassava Sciences has never engaged in criminal conduct."
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Cassava Sciences sheds 44% on report of criminal probe linked to Alzheimer’s drug