- Nasdaq:SAVA fell nearly 10% on Tuesday after rising nearly 90% earlier this week.
- Analysts raised their ratings after SAVA announced positive news about its Alzheimer’s clinical trial.
NASDAQ:SAVA retreated Tuesday after nearly doubling in price on Monday, after Wall Street analysts were bullish on the biotech’s Phase 2B clinical trial results for its Alzheimer’s disease treatment Sumifilam. Shares fell 9.42 percent to close Tuesday’s trading session at $7.02, still well above its 50-day and 200-day moving averages. Previously, the stock surged more than 145% on Monday following Casava’s announcement. Trading volume has been high over the past few days, with more than 14 million shares traded on Tuesday compared to an average of 4 million shares.
Sumifilam showed an improved patient response rate of 98%, which is good news for the company after news in May that the trial had failed to meet its primary endpoint. The reversal of the treatment effect was music to investors’ ears as the Austin, Texas-based micro-cap biotech nearly doubled its market cap in 24 hours.Maxim analyst Jason McCarthy upgraded his stance to buy and hold and eagerly announced a new long-term price target of $14. McCarthy cites 2025 as a key year for finalized drug approvals and potential launches, so investors do have a bit of a long-term horizon if McCarthy’s statement is accurate.
SAVA Stock Forecast
In the short term, SAVA may have done most of its growth in the last few days. Kas ava is hoping that Sumifilam’s Phase 3 trial will begin in late 2021 and will continue for several years, so McCarthy’s timing estimates may be accurate. Investors should hold now for the long term, as a successful Phase 3 trial could give the stock another run for its money and establish Casava as a leader in Alzheimer’s treatment.