Cassava Sciences Replaces Entire Management Team Amid Data Falsification Scandal
Cassava Sciences (NASDAQ: SAVA) announced a sweeping overhaul of its leadership following revelations of data falsification in its Alzheimer’s drug trials. Richard Barry has been appointed as Executive Chairman of the Board and principal executive officer, effective immediately, while the company is actively searching for a new permanent CEO to lead the organization forward.
Rick Barry, who has been a director at Cassava since June 2021, has previously served on the boards of Sarepta Therapeutics and MiMedx Group. Barry expressed the company’s renewed commitment to ethical practices and scientific integrity: “As a public company, and one dedicated to developing a drug for Alzheimer’s disease, we hold ourselves to the highest standards. Our priority remains the development of a potentially effective treatment for Alzheimer’s disease with transparency, accountability, and highest ethical business practices.”
This leadership shake-up comes after former Chairman, President, and CEO Remi Barbier resigned amid controversy and will remain with the company in a non-executive role until September 13, 2024. The company faced intense scrutiny after accusations of data manipulation in trials for simufilam. The fallout included the indictment of a science advisor for fraud, further damaging the company’s credibility and investor trust.
Nick Mark, MD, commented on the situation via X, highlighting the significance of the leadership overhaul: “Looks like the leadership team is OUT at Cassava Life Sciences $SAVA after much of the work on their experimental Alzheimer’s drug was revealed to be fake & a science advisor was indicted for fraud a few weeks ago.”
Lindsay Burns, Ph.D., Senior Vice President of Neuroscience, is also departing, agreeing to provide consulting services for up to a year to support ongoing scientific research and regulatory efforts.
Following the executive changes, Cassava said its mission continues to be determining if simufilam, its experimental Alzheimer’s drug, is effective. The company has pledged to adhere to rigorous scientific standards and transparent reporting and all study results will be promptly posted to clinicaltrials.gov.
Ongoing Phase 3 trials are being conducted according to FDA and industry standards. To ensure unbiased results, blinding information is handled exclusively by Premier Research, and statistical analyses are conducted by Pentara Corporation.
Cassava also promised to renew quarterly analyst calls and engage regularly with stakeholders, including shareholders, employees, regulators, and the broader community. The company is reviewing its disclosure practices to provide clear and comprehensive information.
Alongside the leadership changes, Cassava’s board has appointed Pierre Gravier as Chair of the Audit Committee and Robert Anderson, Jr. as Chair of the Nominating and Governance Committee. Barry emphasized the board’s dedication to strengthening corporate governance and responsible stakeholder engagement: “We have an extraordinary board of directors that remains focused on continuing to strengthen the company’s corporate governance framework and on enhancing its commitment to responsible and transparent stakeholder engagement.”
Cassava Sciences last traded at $10.26 on the NASDAQ.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
