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Cassava Sciences (SAVA) to Post Q3 Earnings: What's in Store?
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Cassava Sciences, Inc. (SAVA - Free Report) will provide updates on its progress with Alzheimer’s disease (AD) candidate, simufilam, in its third-quarter 2021 earnings call.
The company has a dismal earnings surprise history. It missed the Zacks Consensus Estimate in the last three quarters and beat the same in one. The average four-quarter earnings surprise was -24.1%. In the last reported quarter, the company missed earnings by 18.18%.
Shares of Cassava Sciences have surged 532.4% in the year so far against the industry’s decline of 15.1%.
Image Source: Zacks Investment Research
Key Factors to Note
Cassava Sciences does not have any marketed drugs in its portfolio and hence, it does not generate any revenues. Investors will primarily focus on updates on its lead drug candidate when it reports results.
Simufilam is the company’s lead drug candidate, which is being evaluated for the treatment of AD.
R&D expenses were $3.9 million in the previous quarter and the same is likely to have increased in the third quarter due to progress with the pipeline.
Cassava has also been embroiled in a few controversies, and further updates on the same will be keenly awaited in its earnings call.
In August, there was a petition requesting the FDA to halt the current clinical studies of simufilam PTI-125 sponsored by Cassava questioning the integrity of the studies on various grounds.
Per the petition, biomarker data is generated by Cassava or its science collaborators and therefore are falsified. Among others, it was also alleged that extensive use of Western blot analysis is foundational to Cassava’s research, and western blots data appear overexposed and highly processed, suggesting image manipulation.
Cassava came out with a response addressing the various allegations. Per the company, plasma p-tau data from Alzheimer’s patients was generated by Quanterix Corp., an independent company. Quanterix, a company digitizing biomarker analysis, stated that neither it nor its employees interpreted the test results or prepared the data charts presented by Cassava at the Alzheimer’s Association International Conference in July 2021 or otherwise.
The company also announced that it has reached an agreement with the FDA under a Special Protocol Assessment for both of its pivotal phase III studies of oral simufilam for the treatment of patients with AD.
In September, Cassava announced encouraging top-line clinical data from a pre-planned interim analysis of an ongoing open-label study with its drug candidate simufilam in patients with mild-to-moderate AD. Thereafter, in October, Cassava initiated an initial phase III efficacy study of simufilam. A second phase III efficacy study of simufilam in AD is expected to begin by the year-end. Investors are keen on further updates on the same.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Cassava this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
Earnings ESP: Cassava has an Earnings ESP of 0.00%. Both Zacks Consensus Estimate and Most Accurate Estimate are pegged at a loss of 17 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Image: Bigstock
Cassava Sciences (SAVA) to Post Q3 Earnings: What's in Store?
Cassava Sciences, Inc. (SAVA - Free Report) will provide updates on its progress with Alzheimer’s disease (AD) candidate, simufilam, in its third-quarter 2021 earnings call.
The company has a dismal earnings surprise history. It missed the Zacks Consensus Estimate in the last three quarters and beat the same in one. The average four-quarter earnings surprise was -24.1%. In the last reported quarter, the company missed earnings by 18.18%.
Shares of Cassava Sciences have surged 532.4% in the year so far against the industry’s decline of 15.1%.
Key Factors to Note
Cassava Sciences does not have any marketed drugs in its portfolio and hence, it does not generate any revenues. Investors will primarily focus on updates on its lead drug candidate when it reports results.
Simufilam is the company’s lead drug candidate, which is being evaluated for the treatment of AD.
R&D expenses were $3.9 million in the previous quarter and the same is likely to have increased in the third quarter due to progress with the pipeline.
Cassava has also been embroiled in a few controversies, and further updates on the same will be keenly awaited in its earnings call.
In August, there was a petition requesting the FDA to halt the current clinical studies of simufilam PTI-125 sponsored by Cassava questioning the integrity of the studies on various grounds.
Per the petition, biomarker data is generated by Cassava or its science collaborators and therefore are falsified. Among others, it was also alleged that extensive use of Western blot analysis is foundational to Cassava’s research, and western blots data appear overexposed and highly processed, suggesting image manipulation.
Cassava came out with a response addressing the various allegations. Per the company, plasma p-tau data from Alzheimer’s patients was generated by Quanterix Corp., an independent company. Quanterix, a company digitizing biomarker analysis, stated that neither it nor its employees interpreted the test results or prepared the data charts presented by Cassava at the Alzheimer’s Association International Conference in July 2021 or otherwise.
The company also announced that it has reached an agreement with the FDA under a Special Protocol Assessment for both of its pivotal phase III studies of oral simufilam for the treatment of patients with AD.
In September, Cassava announced encouraging top-line clinical data from a pre-planned interim analysis of an ongoing open-label study with its drug candidate simufilam in patients with mild-to-moderate AD. Thereafter, in October, Cassava initiated an initial phase III efficacy study of simufilam. A second phase III efficacy study of simufilam in AD is expected to begin by the year-end. Investors are keen on further updates on the same.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Cassava this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.
Earnings ESP: Cassava has an Earnings ESP of 0.00%. Both Zacks Consensus Estimate and Most Accurate Estimate are pegged at a loss of 17 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Cassava Sciences, Inc. Price and Consensus
Cassava Sciences, Inc. price-consensus-chart | Cassava Sciences, Inc. Quote
Stocks to Consider
Here are some biotech stocks that have the right mix of elements to beat on earnings this time around:
Regeneron Pharmaceuticals (REGN - Free Report) has an Earnings ESP of +8.78% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exelixis (EXEL - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #1.
Vertex Pharmaceuticals (VRTX - Free Report) has an Earnings ESP of +10.62% and a Zacks Rank #2.