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Let’s rewind again to the beginning of final 12 months, to a interval when Cassava Sciences (SAVA) shares started their ascent to the next place; traders had evidently cottoned on to the potential of the corporate’s potential Alzheimer’s illness (AD) remedy simufilam. In medical research, the drug demonstrated a capability to enhance sufferers’ cognitive behaviour after 6 months, 9 months after which 12 months of remedy, a feat no different AD drug had achieved earlier than.
Nevertheless, the corporate’s status has been tarnished following accusations its knowledge gathering strategies had been unsound with the outcomes’ credibility referred to as into query. Following which, the market ate up a great deal of the share positive aspects.
In the meantime, late final 12 months the corporate initiated two Part 3 medical trials assessing simufilam’s security and efficacy profile; sufferers are receiving completely different oral doses of the drug over a interval of a minimum of 52 weeks.
The corporate could be an issue magnet however after holding a current 1×1 digital assembly with Cassava’s administration, H.C. Wainwright analyst Vernon Bernardino got here away “assured within the firm’s capability to navigate controversy and advance simufilam by means of Part 3 research in Alzheimer’s illness (AD).” The analyst reckons the drug has “robust prospects for fulfillment.”
Whereas affected person recruitment has been affected as a result of Omicron-related staffing points at medical trial websites, primarily based on well being knowledge following Omicron’s peak in South Africa, the corporate believes that recruitment “shouldn’t be affected” for much longer.
Moreover, Bernardino notes that AD sufferers have proven “excessive curiosity” in taking part within the examine and with the chance to enroll their AD sufferers, so have neurologists.
Bernardino counts additional progress with Part 3 examine enrolment, together with updates on the open-label and cognitive upkeep research with simufilam as “optimistic catalysts in 2022.”
With the shares having pulled again considerably since July 2021’s highs, the 5-star analyst thinks SAVA inventory “represents a lovely worth proposition.”
As such, Bernardino reiterated a Purchase ranking on the inventory, backed by a $124 worth goal. The implication for traders? Upside of a good-looking 155%. (To look at Bernardino’s observe document, click on right here)
Three different analysts have reviewed Cassava’s prospects over the previous 3 months, and all are optimistic, offering the inventory with a Sturdy Purchase consensus ranking. Furthermore, Bernardino’s worth goal is without doubt one of the extra conservative ones; the typical goal stands at $159.25 suggesting shares will soar by 227% within the 12 months forward. (See SAVA inventory forecast on TipRanks)
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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is rather necessary to do your personal evaluation earlier than making any funding.
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