On November 7, 2023, Cassava Sciences Inc (SAVA, Financial), a biotechnology company focused on Alzheimer’s disease, announced its financial and operating results for the third quarter ended September 30, 2023. The company reported a net loss of $25.7 million, or $0.61 per share, compared to a net loss of $20.3 million, or $0.51 per share, for the same period in 2022. The increased net loss was primarily due to increases in patient enrollment and associated costs to conduct the Phase 3 clinical program, as well as other studies with simufilam.
Financial Highlights
As of September 30, 2023, Cassava Sciences Inc (SAVA, Financial) had cash and cash equivalents of $142.4 million, with no debt. The company used $59.7 million in operations during the first nine months of 2023. The expected net cash use in operations for the second half of 2023 is projected to be $40 to $50 million, driven primarily by expenses for the clinical program in Alzheimer’s disease.
Research and development (R&D) expenses for the quarter were $23.6 million, compared to $18.5 million for the same period in 2022. The increase in R&D expenses was primarily due to increasing patient enrollment and costs to conduct the Phase 3 clinical program, as well as other studies with simufilam. General and administrative (G&A) expenses were $4.3 million, compared to $2.8 million for the same period in 2022. The rise in G&A expenses was attributed to activities and expenses related to legal services as well as increases in stock-based compensation.
Operational Highlights
Cassava Sciences recently completed enrollment for Phase 3 trials evaluating oral simufilam in Alzheimer's, with over 1,900 patients randomized. The company expects top-line results for the 52-week Phase 3 trial around the end of 2024 and for the 76-week Phase 3 trial around mid-2025. Interim safety MRI data suggests that simufilam is not associated with treatment-emergent ARIA, which are imaging abnormalities. In September 2023, a Data and Safety Monitoring Board (DSMB) recommended that the Phase 3 studies continue as planned, without modification.
Looking Ahead
Despite the increased net loss, Cassava Sciences Inc (SAVA, Financial) remains committed to its mission of developing a new treatment option for people with Alzheimer’s. The company's cash position and the progress of its Phase 3 trials suggest a promising outlook for the future. Investors and stakeholders are advised to keep an eye on the company's upcoming financial reports and the results of its clinical trials.
Explore the complete 8-K earnings release (here) from Cassava Sciences Inc for further details.
