Cassava Sciences SAVA, a clinical-stage biotech focusing on developing novel products to detect and treat neurodegenerative diseases, such as Alzheimer’s disease (AD), is expected to report fourth-quarter earnings results soon.
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The Zacks Consensus Estimate for SAVA’s loss per share in the to-be-reported quarter is currently pegged at $1.58. The company currently does not generate any revenues.
Let's see how things have shaped up for the upcoming quarterly release.
Factors to Consider Regarding SAVA’s Q4 Earnings
In the absence of a marketed product, investors are advised to look forward to the company’s pipeline updates in the upcoming earnings call.
Please note that in November 2024, Cassava faced a massive setback after it reported that its lead and only pipeline drug, simufilam, failed to meet the primary endpoints in a late study for AD.
Cassava released top-line results from the RETHINK-ALZ study, which evaluated simufilam in patients with mild-to-moderate AD. Treatment with the drug failed to achieve a significant reduction in cognitive or functional decline in AD patients when compared to placebo over 52 weeks, as assessed by the ADAS-COG12 and ADCS-ADL scales. The study failed to meet any pre-specified secondary and exploratory biomarker endpoints, as well.
Based on the above study results, SAVA also decided to discontinue the phase III REFOCUS-ALZ study, which evaluated simufilam in AD patients over 76 weeks. It will also be discontinuing the open-label extension study on the drug.
In the past three months, the stock has plunged 89.8% compared with the industry’s 6.5% decline.
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Cassava is in the final stages of discontinuing the REFOCUS-ALZ study and anticipates releasing topline results in the late first quarter or early second quarter of 2025. Meanwhile, the company is carefully analyzing data from the RETHINK-ALZ study and intends to also incorporate findings from the REFOCUS-ALZ study into its assessment of future steps.
Cassava is currently left with its lead investigational diagnostic product candidate, SavaDx. Management believes that this candidate has the potential to become a novel way of detecting the presence of AD from a small blood sample.
In early January, SAVA announced plans to reduce its workforce by 33% in first-quarter 2025 as part of ongoing cost management efforts. Additionally, it will discontinue the planned biomarker analysis of plasma samples from past mid-stage studies. The workforce reduction is expected to result in a one-time cost of approximately $0.4 million in first-quarter 2025.
Cassava expects to end the fourth quarter of 2024 with a cash balance of approximately $128.6 million.
SAVA’s Earnings Surprise History
Cassava beat estimates in one of the trailing four quarters and missed on the other three occasions, delivering an average negative surprise of 83.68%. In the last reported quarter, the company came up with an earnings surprise of 57.66%.
Earnings Whispers for SAVA
Our proven model does not predict an earnings beat for Cassava this time around. 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. However, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: SAVA has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 68 cents per share.
Zacks Rank: SAVA 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
argenx ARGX has an Earnings ESP of +29.90% and a Zacks Rank #1 at present.
ARGX’s shares have gained 6.9% in the past three months. argenx beat on earnings in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average surprise of 339.37%.
Pacira BioSciences, Inc. PCRX has an Earnings ESP of +2.77% and sports a Zacks Rank #1 at present.
Shares of PCRX have surged 46.7% in the past three months. PCRX beat earnings estimates in two of the trailing four quarters, met once, and missed the same on the remaining occasion, delivering an average surprise of 7.13%.
Mirum Pharmaceuticals, Inc. MIRM has an Earnings ESP of +24.63% and a Zacks Rank #2 at present.
Shares of MIRM have surged 18.8% in the past three months. MIRM beat on earnings in one of the trailing four quarters while missing the same in the remaining three occasions, delivering an average negative surprise of 26.03%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
