Cassava Sciences (SAVA) to Release Second Quarter Results: What’s Next?

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Cassava Sciences, Inc. SAVA will provide updates on its Alzheimer’s disease (AD) candidate, simufilam, when the second quarter 2021 results are released.

The company has a history of mixed earnings. He missed Zacks’ consensus estimate for earnings over the past two quarters and beat the same in the other two. The four-quarter average profit surprise was -15.39%. In the last quarter published, the company missed its profits by 12.50%.

Shares of Cassava Sciences have jumped 1,112.6% in the year so far, compared to an industry decline of 10.8%.

Image source: Zacks Investment Research

Let’s see how things prepare for this announcement.

Key factors to note

Cassava Sciences does not have any marketed drugs in its portfolio and therefore does not generate any income. Investors will primarily focus on updates to its leading drug candidate when the results are released.

Simufilam is the Company’s lead drug candidate, which is being evaluated for the treatment of AD.

In March 2020, Cassava Sciences launched a long-term, open-label study to evaluate simufilam in patients with AD. This study is funded by a research grant from the National Institutes of Health (NIH). This open label study is being conducted to monitor the long-term safety and tolerability of simufilam 100 mg twice daily for 12 months or longer in patients with AD. It also aims to measure changes in cognition on ADAS-Cog, a standard test of cognition in AD.

The study protocol predefined interim safety and cognition analyzes for the first 50 subjects who complete 6, 9 and 12 months of drug treatment. The target number of 150 subjects has been reached. Cassava Sciences plans to announce the results of an interim safety and cognition analysis of the first 50 subjects who completed 9 months of open label drug therapy shortly and investors will be pleased with updates on this.

In May 2021, the company launched a double-blind, randomized, placebo-controlled study in patients with AD – Cognition Maintenance Study (CMS). Patients who have already completed at least one year of open-label treatment with simufilam are eligible to enroll in the CMS. Updates on this will be expected during the call.

Cassava Sciences plans to launch a phase III program of simufilam in MA in the second half of 2021 and further updates on the same topic will be an area of interest.

As of March 31, Cassava Sciences had approximately $ 282 million in cash. By management, it has a sufficient lead to support the phase III clinical development program of simufilam. In May 2021, the company announced a new research grant of $ 2.7 million from NIH.

What our model says

Our proven model does not conclusively predict an increase in profits for Cassava Sciences this season. The combination of a positive earnings ESP and a Zacks # 1 (strong buy), 2 (buy), or 3 (hold) ranking increases the odds of beating the winnings. But this is not the case here as you will see below.

ESP on earnings: Cassava Sciences has ESP income of 0.00%. Zacks’ Consensus Estimate and the Most Accurate Estimate both recorded a loss of 11 cents. You can discover the best stocks to buy or sell before they are reported with our ESP Earnings Filter.

Zack Rank: The company currently has a Zacks Rank # 4 (Sell).

Cassava Sciences, Inc. Price, Consensus, and EPS Surprise

Cassava Sciences, Inc. price-consensus-eps-surprise-chart | Cassava Sciences, Inc. Quote

Actions to consider

Here are a few biotech stocks that have the right mix of elements to beat profits this time around:

Society of Exact Sciences EXAS has + 1.19% Revenue ESP and Zacks # 1 rank. You can see The full list of today’s Zacks # 1 Rank stocks here.

Pharmaceutical ACADIA ACAD has an ESP on earnings of + 7.53% and a Zacks Rank # 2.

Blueprint Medicines Corporation BPMC has a revenue ESP of + 5.50% and a Zacks # 3 rank.

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