Cassava Sciences, Inc. (SAVA) Bundle
A Brief History of Cassava Sciences, Inc.
Company Overview
Cassava Sciences, Inc. is a clinical-stage biotechnology company focused on developing innovative treatments for neurodegenerative diseases, particularly Alzheimer's disease. As of September 30, 2024, the company has not yet generated any revenue from product sales and has accumulated significant losses primarily due to research and development expenses.
Financial Performance
As of September 30, 2024, Cassava Sciences reported:
- Net loss $27.9 million for the three months ended September 30, 2024; $25.7 million for the three months ended September 30, 2023.
- Total operating expenses: $30.6 million for Q3 2024, up from $27.9 million in Q3 2023.
- Research and development expenses: $17.7 million for Q3 2024, a decrease from $23.6 million in Q3 2023.
- General and administrative expenses: $12.9 million for Q3 2024, up from $4.3 million in Q3 2023.
Warrant Distribution and Financing Activities
On January 3, 2024, the company distributed approximately 16.9 million warrants to purchase shares of common stock at an exercise price of $33.00 per warrant. The warrants were redeemable starting May 7, 2024. As of September 30, 2024, the gross proceeds from warrant exercises totaled approximately $126.3 million from the issuance of approximately 5.7 million common shares at $22.00 per share.
Cash and Liquidity Position
As of September 30, 2024, Cassava Sciences had:
- Cash and cash equivalents: $149.0 million.
- Accumulated deficit: $377.5 million.
- Net cash used in operating activities: $55.7 million for the nine months ended September 30, 2024.
Stockholder's Equity
As of September 30, 2024, the company reported:
- Total stockholders' equity: $166.6 million.
- Common stock: 47,976,166 shares issued and outstanding.
- Additional paid-in capital: $544.1 million.
Research and Development Focus
The company's primary focus remains on the development of Simufilam for Alzheimer's disease. The research and development expenses were $49.1 million for the nine months ended September 30, 2024, down from $70.7 million for the same period in 2023, reflecting the completion of patient screening and enrollment for their Phase 3 clinical program.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss | $27.9 million | $25.7 million | $3.3 million | $76.3 million |
| Total Operating Expenses | $30.6 million | $27.9 million | $111.9 million | $83.2 million |
| Research and Development Expenses | $17.7 million | $23.6 million | $49.1 million | $70.7 million |
| General and Administrative Expenses | $12.9 million | $4.3 million | $62.9 million | $12.5 million |
| Cash and Cash Equivalents | $149.0 million | |||
| Accumulated Deficit | $377.5 million | |||
| Total Stockholders' Equity | $166.6 million | |||
A Who Owns Cassava Sciences, Inc. (SAVA)
Ownership Structure
As of 2024, Cassava Sciences, Inc. (SAVA) has a diverse ownership structure that includes institutional investors, insiders, and retail shareholders. The total number of shares outstanding as of September 30, 2024, is approximately 47,976,166 shares.
Institutional Ownership
Institutional investors hold a significant portion of Cassava Sciences' shares. The following table summarizes the top institutional shareholders as of the latest data available:
| Institution | Shares Owned | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 7.29% |
| The Vanguard Group, Inc. | 3,200,000 | 6.68% |
| State Street Corporation | 2,500,000 | 5.21% |
| Balyasny Asset Management LLC | 1,800,000 | 3.75% |
| Other Institutions | 10,000,000 | 20.86% |
Insider Ownership
Insider ownership is another critical component of the company's equity structure. Key executives and board members hold a notable number of shares, as detailed below:
| Insider Name | Position | Shares Owned | Percentage of Ownership |
|---|---|---|---|
| Remi Barbier | CEO | 1,200,000 | 2.50% |
| Dr. David M. McGowan | Chief Medical Officer | 300,000 | 0.63% |
| Board Members (Total) | Various | 500,000 | 1.04% |
Retail Ownership
Retail investors also play a significant role in the ownership of Cassava Sciences, holding approximately 30% of the outstanding shares. This segment includes individual investors and smaller investment firms.
Warrants and Stock Options
In 2024, Cassava Sciences distributed approximately 16.9 million warrants, which were exercisable at an exercise price of $33.00 per warrant. The company also has stock options outstanding, with the following details:
| Type | Outstanding Options | Exercise Price |
|---|---|---|
| Employee Stock Options | 4,104,029 | $17.79 |
| Performance Awards | 7,142 | N/A |
Recent Developments
As of September 30, 2024, Cassava Sciences reported an accumulated deficit of $377.5 million. The company's financial position reflects ongoing investments in research and development, with significant operating expenses reported for the nine months ended September 30, 2024, amounting to $111.96 million.
The company continues to explore avenues for additional funding to support its operations and growth strategy. It had cash and cash equivalents of approximately $149 million as of the same date.
Cassava Sciences, Inc. (SAVA) Mission Statement
Cassava Sciences, Inc. is committed to discovering and developing proprietary pharmaceutical product candidates that may offer significant improvements to patients and healthcare professionals, focusing on disorders of the nervous system.
Financial Overview
The company has reported significant financial metrics as of September 30, 2024. Below is a summary of key financial data:
| Financial Metric | Amount (in thousands) |
|---|---|
| Cash and cash equivalents | $148,978 |
| Restricted cash | $40,000 |
| Total current assets | $202,549 |
| Total assets | $223,753 |
| Accounts payable and accrued expenses | $52,244 |
| Total liabilities | $57,114 |
| Accumulated deficit | $(377,514) |
| Total stockholders' equity | $166,639 |
Operating Activities
For the nine months ended September 30, 2024, the net cash used in operating activities was reported at $55.7 million. This was primarily due to a net income of $3.3 million, stock-based compensation expense of $10.5 million, and changes in accounts payable and accrued expenses amounting to $41.7 million.
Research and Development Expenditures
Cassava Sciences focuses substantially on the development of its lead product candidate, simufilam. The following table summarizes the research and development expenses by category for the three and nine months ended September 30, 2024:
| Expense Category | Three Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) |
|---|---|---|
| Clinical trials | $11,012 | $33,181 |
| Pre-clinical projects | $1,869 | $3,868 |
| Chemical, Manufacturing and Controls costs | $717 | $1,910 |
| Personnel related | $1,948 | $5,208 |
| Stock-based compensation | $1,675 | $3,620 |
| Other | $455 | $1,320 |
| Total | $17,676 | $49,107 |
Clinical Trials Update
Cassava Sciences is actively conducting two Phase 3 studies for simufilam:
- RETHINK-ALZ: A 52-week study comparing simufilam 100 mg tablets versus placebo.
- REFOCUS-ALZ: A 76-week study evaluating simufilam 100 mg and 50 mg tablets versus placebo.
Top-line results for RETHINK-ALZ are expected by the end of 2024, while results for REFOCUS-ALZ are anticipated mid-year 2025.
Stock Performance
As of September 30, 2024, the total number of shares outstanding was 47,976,166, and the net loss per share, basic, was reported at $(0.58).
Cassava Sciences continues to focus on achieving regulatory approvals and successfully marketing its product candidates to generate revenue from direct sales and licensing agreements in the future.
How Cassava Sciences, Inc. (SAVA) Works
Company Overview
Cassava Sciences, Inc. is focused on the discovery and development of proprietary pharmaceutical product candidates aimed at treating neurodegenerative diseases. The company is primarily known for its investigational drug candidate, simufilam, which is being developed for Alzheimer's disease.
Financial Performance
As of September 30, 2024, Cassava Sciences reported the following financial figures:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Research and Development Expenses | $17.68 million | $23.60 million | $49.11 million | $70.69 million |
| General and Administrative Expenses | $12.95 million | $4.28 million | $62.85 million | $12.48 million |
| Total Operating Expenses | $30.62 million | $27.88 million | $111.96 million | $83.17 million |
| Net Income (Loss) | $(27.94) million | $(25.65) million | $3.26 million | $(76.30) million |
| Net Income (Loss) per Share | $(0.58) | $(0.61) | $0.07 | $(1.82) |
Balance Sheet Highlights
As of September 30, 2024, the balance sheet of Cassava Sciences reflected the following:
| Asset/Liability | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $148.98 million | $121.14 million |
| Restricted Cash | $40.00 million | $0.00 million |
| Total Current Assets | $202.55 million | $129.63 million |
| Total Assets | $223.75 million | $151.66 million |
| Total Liabilities | $57.11 million | $14.20 million |
| Total Stockholders' Equity | $166.64 million | $137.47 million |
Research and Development Focus
Cassava Sciences primarily focuses its research efforts on simufilam, with the following breakdown of R&D expenses as of September 30, 2024:
| Expense Category | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Clinical Trials | $11.01 million | $19.53 million | $33.18 million | $57.02 million |
| Pre-clinical Projects | $1.87 million | $1.29 million | $3.87 million | $4.46 million |
| Chemical, Manufacturing and Controls Costs | $0.72 million | $0.60 million | $1.91 million | $2.83 million |
| Personnel Related | $1.95 million | $1.45 million | $5.21 million | $4.27 million |
| Stock-based Compensation | $1.68 million | $0.41 million | $3.62 million | $1.19 million |
Warrant Distribution and Financing Activities
In January 2024, Cassava Sciences executed a warrant distribution resulting in:
- Gross proceeds of approximately $126.3 million.
- Total net proceeds of approximately $123.6 million after deducting exercise expenses and commissions.
- Approximately 5.7 million common shares issued at an average price of $22.00 per share.
Regulatory and Clinical Trials Update
Cassava is currently conducting two Phase 3 clinical trials for simufilam:
- RETHINK-ALZ: 52-week study with top-line results expected by the end of 2024.
- REFOCUS-ALZ: 76-week study with top-line results anticipated mid-2025.
Legal Proceedings
The company is involved in various legal and regulatory proceedings, including inquiries from the Department of Justice and the SEC, related to its research and development activities. The outcome of these proceedings remains uncertain.
How Cassava Sciences, Inc. (SAVA) Makes Money
Revenue Model
Cassava Sciences, Inc. has yet to generate revenue from product sales as of 2024. The company is primarily focused on the development of its lead drug candidate, simufilam, for the treatment of Alzheimer's disease. Revenue generation will depend on the successful completion of clinical trials, regulatory approvals, and subsequent commercialization of its products.
Financial Performance
As of September 30, 2024, Cassava Sciences reported an accumulated deficit of $377.5 million. For the nine months ended September 30, 2024, the company reported a net income of $3.3 million, largely influenced by a gain from the change in fair value of warrant liabilities of $108.2 million.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income (Loss) | $3.3 million | ($76.3 million) |
| Operating Expenses | $111.96 million | $83.17 million |
| Research and Development Expenses | $49.1 million | $70.7 million |
| General and Administrative Expenses | $62.9 million | $12.5 million |
| Cash and Cash Equivalents | $149.0 million | N/A |
Cash Flow Analysis
For the nine months ended September 30, 2024, Cassava Sciences reported net cash used in operating activities of $55.7 million. The cash flow from financing activities during this period was notably strong, with net proceeds from the exercise of warrants amounting to $123.6 million.
| Cash Flow Components | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | ($55.7 million) | ($59.7 million) |
| Net Cash Used in Investing Activities | ($46,000) | ($400,000) |
| Net Cash Provided by Financing Activities | $123.6 million | $1.4 million |
Research and Development Focus
The majority of Cassava Sciences' expenditures are allocated to research and development, particularly for simufilam. For the three months ended September 30, 2024, research and development expenses were $17.7 million. The company aims to continue its Phase 3 clinical program and open-label extension studies.
| R&D Expense Breakdown | 2024 (Three Months) | 2023 (Three Months) |
|---|---|---|
| Clinical Trials | $11.0 million | $19.5 million |
| Pre-clinical Projects | $1.9 million | $1.3 million |
| Chemical, Manufacturing and Controls | $717,000 | $602,000 |
| Personnel Related | $1.9 million | $1.5 million |
| Stock-based Compensation | $1.7 million | $405,000 |
Intellectual Property and Future Prospects
Cassava Sciences holds exclusive worldwide rights to simufilam and its diagnostic product candidate, SavaDx. The company's patent protection includes nine issued U.S. patents related to simufilam, with expiration dates ranging from 2029 to 2040. Future revenue generation will largely depend on successful regulatory approval and market acceptance of these products.
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Resources:
- Cassava Sciences, Inc. (SAVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cassava Sciences, Inc. (SAVA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cassava Sciences, Inc. (SAVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.