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- Cassava Sciences said it recorded a $40M loss contingency in Q2 as part of a potential resolution of an SEC investigation into the company’s phase 2b study of Alzheimer’s candidate simufilam.
- The company now expects net cash use for operations in H2 of $80M-$90M, which includes $40 million loss contingency related to advanced discussions to resolve the SEC’s investigation. The company estimates cash at year-end 2024 in a range from $117M to $127M.
- In Q2, Cassava swung to a net gain of ~$6.2M ($0.13 per share basic and diluted) thanks in larger part to a gain from change in fair value of warrant liabilities.
- In a conference call, the company noted it has not yet agreed to an agreement in principle, but the $40M is being set aside based on discussions. Executive Chairman Rick Barry said doing so is part of efforts “to put the past behind us.”
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