The Securities and Exchange Commission has reportedly authorized an investigation into Cassava Sciences (SAVA), which sent SAVA shares to a seven-month high on Thursday.
Afternoon is traded today’s stock marketSAVA shares jumped 32.1% to close at 49.70.
Last November, the SEC launched an investigation into Cassava’s simufilam research. The scientists, who also held short positions in SAVA stock, claimed cassava manipulated images used in testing the experimental Alzheimer’s treatment.
On Thursday, Seeking Alpha published a document showing that the SEC had reached a “five-page case closure recommendation.”
The agency declined to release the full decision, citing attorney privilege. Representatives for Cassava did not immediately return a request for comment.
SAVA Stock: Stabilization of a key protein
Allegations of data manipulation have weighed on SAVA’s stock since last year. The scientists at the center of the allegations also asked the Food and Drug Administration to halt research on cassava. But the agency refused to do so.
According to cassava, simufilam works by stabilizing an abnormal protein in the brain.
Follow Alison Gatlin on Twitter at @IBD_AGatlin.
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