Cassava Sciences(SAVA. US) followed by more than 7% the FDA rejected a citizen petition to suspend drug trials for Alzheimer's disease

According to reports, the U.S. Food and Drug Administration (FDA) rejected a report on the suspension of Cassava Sciences (SAVA. US) Citizen Petition for a Key Trial of alzheimer's disease drug Simufilam. Boosted by the news, Cassava closed up 7.78 percent on Thursday and up 7.45 percent intraday.

In August last year, Jordan Thomas, a lawyer at the law firm Labaton Sucharow in the United States, questioned the quality and integrity of the results of the Experimental Drug Study for Alzheimer's disease published by the company, which has a history of more than 20 years but has not been listed. Subsequently, people familiar with the matter disclosed that the SEC was investigating allegations that Cassava Sciences manipulated the results of its experimental drug research for Alzheimer's disease.

Patrizia Cavazzoni, director of the FDA's Center for Drug Evaluation and Research, said in rejecting the petition filed by Thomas that Thomas asked the FDA to investigate Cassava's study, but that the investigation was not an administrative action that the executive branch could take under the citizens' petition process.

Thomas responded: "While my client's citizenship petition was rejected by the FDA for technical issues, Cassava Sciences has admitted that the company is under multifaceted investigation and that we will continue to work with federal law enforcement and regulators." ”

Thomas also added that Cavazzoni specifically noted that the rejection of the petition should not be considered a decision by the agency to take or avoid action on the issues raised in the petition. "In short, for the foreseeable future, Cassava Sciences and its CEO, Remi Barbier, need lawyers to defend them."

In response to a press release issued after hours on Thursday, Cassava accused Thomas of filing a petition on behalf of a short client.

Barbier said in a press release: "We said from the outset that these allegations were false. I think the message may be that the FDA's citizen petition privilege cannot be played with by stock market participants. ”