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Shares of Cassava Science (NASDAQ:SAVA) was down 12% today, but has since recovered to the $35 range, down about 4%. This was probably attributed to the publication of an article by Report probes.
Probes said he uncovered two undisclosed Securities and Exchange Commission (SEC) investigations in the “recent past.” Both investigations appear to be related to Cassava’s experimental Alzheimer’s drug, Simufilam, while only one investigation is still ongoing.
This follows a major announcement last month when the SEC recommended closing a case in the Simufilam investigation. The investigation has its roots in two doctors who accused Cassava of manipulating his Simufilam research data using software. The doctors then filed a petition with the Food and Drug Administration (FDA), asking the agency to stop trials of the drug.
Controversially, the Doctors also disclosed a short position in SAVA shares. The FDA later denied the petition and explained that it had no enforcement authority over the trials. However, SAVA short sellers are estimated to have made over $100 million in profits.
Why is SAVA stock down 10% today?
Meanwhile, an article in the Journal of Clinical Investigation, or JCI, by Elizabeth McNally is also making investors nervous. In August 2021, JCI received an email alleging misconduct regarding a JCI article published in 2012. The sender said he had been “engaged by a law firm to investigate a concern of scientific misconduct related to the development of a drug to treat Alzheimer’s disease”. sickness.”
JCI has been asked to comment on the matter several times this year. He has also received accusatory emails which “identify no financial conflict of interest on the part of whistleblowers”. As a result, McNally expressed concern that emails “represent a new means of manipulating the scientific publishing industry”.
McNally notes that JCI is very adept at detecting image manipulation and uses artificial intelligence software to help. She also stated that JCI does not have access to primary data but rather images that represent primary data.
Going forward, JCI will investigate complaints and also ask about any conflicts of interest from whistleblowers. If evidence of wrongdoing is found, JCI will adopt “expressions of concern or retractions”.
At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.