Cassava’s Alzheimer’s Drug Is Potentially Better Than Biogen’s, Says Analyst

Monday was a landmark day in the fight against Alzheimer’s disease. In an outcome which took Wall Street by surprise, the FDA approved Biogen’s controversial Alzheimer’s drug Aduhelm (aducanumab). The Read More... The post Cassava’s Alzheimer’s Drug Is Potentially Better Than Biogen’s, Says Analyst appeared first on TipRanks Financial Blog.

Cassava’s Alzheimer’s Drug Is Potentially Better Than Biogen’s, Says Analyst

Monday was a landmark day in the fight against Alzheimer’s disease. In an outcome which took Wall Street by surprise, the FDA approved Biogen’s controversial Alzheimer’s drug Aduhelm (aducanumab). The decision amounts to a win not only to Biogen but potentially to the U.S.’s 6 million plus sufferers of the memory wiping disease.

JonesTrading analyst Soumit Roy thinks the approval will also provide “positive momentum” for other companies working on treatments for Alzheimer’s, namely Cassava Sciences ().

However, apart from the fact Biogen is required to carry out a post-approval clinical trial to confirm the drug's clinical benefit, the analyst highlights several reasons why the treatment could have a “slower adoption ramp.” These include the “need for early diagnosis/detection to be eligible on aducanumab, lack of healthcare infrastructure for screening in the U.S. to detect early stage Alzheimer and possibly continued need for PET scan.”

On the other hand, Roy thinks Cassava’s Alzheimer’s drug candidate, simufilam, could potentially “have better market penetration,” as it has been the only drug to exhibit cognitive benefits at 6 months.

What’s more, in July (26-29), at AAIC (Alzheimer's Association International Conference), Cassava is set to present a 9-month readout from simufilam’s ongoing Phase 2 open label study in Alzheimer’s disease.

As Cassava’s therapy could also be the first to display cognitive benefits at nine months, Roy says investors’ expectations are “high.”  

“It is critical to note,” the 5-star analyst added, “That the Alzheimer patient population in Cassava’s trial is mild to moderate – more advanced than Biogen’s early stage patients, and is on par with Eli Lilly’s trial patient population.”

Therefore, as both Biogen and Lilly’s drugs began to exhibit a decline from 36 weeks and onwards – although at a slower rate compared to the placebo - maintenance of cognition score (ADAS-Cog11) with respect to the baseline levels “would be a win.” Moreover, continued cognition performance with simufilam above baseline levels would be a “big win.”

The stock has built up momentum again recently, and Roy thinks there could be some “sell the news” profit taking should Cassava deliver the goods. However, the analyst states, “We will be Buyers of SAVA,” should that scenario play out.

Roy’s Buy recommendation is backed by a $110 price target, implying upside of ~66% from current levels. (To watch Roy’s track record, )

Evidently, Roy’s colleagues also think Cassava is well-positioned to deliver. The stock has a Strong Buy consensus rating, based on a unanimous 5 Buys. The forecast is for one-year gains of ~32%, given the average price target currently stands at $87.40. (See SAVA stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Cassava’s Alzheimer’s Drug Is Potentially Better Than Biogen’s, Says Analyst appeared first on TipRanks Financial Blog.

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Tesla: Back on Track With Strong May China Numbers

Following April’s lackluster numbers, the Tesla (TSLA) bears were gathering for a feast ahead of the release of the China Passenger Car Association (CPCA) figures for May. In the end, Read More... The post Tesla: Back on Track With Strong May China Numbers appeared first on TipRanks Financial Blog.

Tesla: Back on Track With Strong May China Numbers

Following April’s lackluster numbers, the Tesla () bears were gathering for a feast ahead of the release of the China Passenger Car Association (CPCA) figures for May. In the end, there was little left for them to savour, as the EV leader appeared to bounce back from April’s worrying performance.

Tesla delivered 33,463 units in May, of which 21,936 were sold in the domestic market and 11,527 exported to Europe.

“This was a 29% jump from the month of April,” said Wedbush analyst Daniel Ives, “However, importantly the domestic cars sold in country were north of 20k as Tesla appears to have handled the shaky China PR issues (safety, big brother is watching-Beijing) and turbulence well as demand rebounded well ahead of expectations.”

Ives thinks the growth story appears to be back on track in “this linchpin region,” which starting in June, will put Tesla on a 300k run-rate for deliveries in China. A tough pill to swallow for all the “skeptics and haters piling on from the month of April,” a month which Ives thinks will prove to be “an anomaly rather than the norm.”

In fact, Ives anticipates a big growth spurt for the Chinese EV industry over the next couple of years, as “transformational consumer demand” will see EV deliveries double from the 5% they currently command out of total vehicle sales. Along with domestic stalwarts such has NIO, Xpeng and Li Auto, Tesla stands to be a major beneficiary.

Looking forward, Ives thinks it is not the “temporary” near-term chip shortage which will determine the company’s trajectory but rather Tesla's ability to further penetrate the Chinese market, and the latest numbers amount to a “clear shot in the arm for the bulls.”

“Now its about Musk playing nice in the sandbox and making sure that Tesla does not see any further stumbles in China which is poised to represent 40%+ of global deliveries by 2022,” the 5-star analyst summed up.

All in all, there’s no change to Ives’ rating, which stays an Outperform (i.e., Buy) or price target, which remains at $1,000. The implication for investors? Upside of 64%. (To watch Ives’ track record, )

Ives, however, is one of Wall Street’s most fervent Tesla supporters and not all are reading from the same manual. The stock has a Hold consensus rating based on 10 Buys, 7 Holds and 6 Sells, while the $639.81 average price target implies shares will gain ~5% over the next 12 months. (See Tesla stock analysis on TipRanks)

To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Tesla: Back on Track With Strong May China Numbers appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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