Cassava Sciences forms internal panel after U.S. regulatory probe into two employees (updated)

Filana Therapeutics

01/07/2024 14:16

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5)
       July 1 (Reuters) - Cassava Sciences  SAVA.O  said on
Monday its board is forming a committee to direct an
investigation into two senior employees of the company, amid
probes by U.S. regulators. 
    The company said it was engaged with both the U.S.
Department of Justice and the U.S. Securities and Exchange
Commission on investigations into the two employees. 
    This comes after federal prosecutors said on Friday that
Hoau-Yan Wang, a doctor who has collaborated with Cassava,
fabricated data included in grant applications to the National
Institutes of Health on behalf of himself and an unnamed
company. 
    In 2021, two physicians unaffiliated with Cassava alleged
the research underpinning its Alzheimer's drug, called
simufilam, was based on manipulated and misrepresented data.
    Shares of the Austin, Texas-based pharmaceutical company
fell 18.4% in premarket trading.

 (Reporting by Christy Santhosh; Editing by Shailesh Kuber)
 ((Christy.Santhosh@thomsonreuters.com;))