WASHINGTON (Reuters) -Shares of Cassava Sciences (NASDAQ:) fell 10% in post-market buying and selling on Thursday after the U.S. Securities and Change Fee charged the biopharmaceutical firm and two former executives for deceptive claims in regards to the outcomes of Alzheimer’s scientific trials.
The deceptive statements have been made in September 2020 in regards to the outcomes of a section two scientific trial for Cassava’s purported drug therapy for Alzheimer’s, the SEC stated.
Cassava’s shares dropped to $28.37 in extended-hours buying and selling. It had closed at $31.87 throughout common hours on Thursday.
The SEC stated Cassava can pay $40 million to settle the civil fees, whereas Remi Barbier, the corporate’s founder and former CEO, and Lindsay (NYSE:) Burns, its former senior vp of neuroscience, can pay $175,000 and $85,000, respectively, to settle the fees.
Hoau-Yan Wang, a Metropolis College of New York Medical Faculty professor and a guide for Cassava who helped to develop the Alzheimer’s drug, was additionally charged by the SEC for manipulating the trial outcomes.
The SEC stated Cassava misled buyers by saying its Alzheimer’s drug “considerably improved affected person cognition.” It didn’t disclose {that a} full set of affected person knowledge really confirmed “no measurable cognitive enchancment within the sufferers’ episodic reminiscence.”
The corporate additionally didn’t disclose Wang’s position within the scientific trial and his private, monetary, {and professional} pursuits within the drug’s success, the SEC stated, including he agreed to pay a $50,000 penalty.
Cassava stated in a press release that it cooperated absolutely with the SEC’s investigation and has carried out remedial measures. It additionally stated it doesn’t presently anticipate prison fees from the Division of Justice.
