The Securities and Exchange Commission reportedly cleared an investigation into Cassava Sciences (SAVA), leading SAVA stock to hit a seven-month high Thursday.
On today’s stock market, SAVA stock rocketed 35.7% to 51.06.
Last November, the SEC launched an investigation into Cassava’s simufilam research. Scientists — who also held short positions in SAVA stock — claimed Cassava manipulated images used in testing of the experimental Alzheimer’s treatment.
On Thursday, Seeking Alpha published a document showing the SEC reached a “five-page case-closing recommendation.” The document carries Monday’s date.
The agency declined to release the full decision, citing attorney privilege. Representatives of Cassava did not immediately return a request for comment.
SAVA Stock: Stabilizing A Key Protein
The data manipulation claims have weighed on SAVA stock since last year. The scientists at the center of the allegations also asked the Food and Drug Administration to suspend Cassava’s studies. But the agency declined to do so.
According to Cassava, simufilam works by stabilizing an abnormal protein in the brain.
Thursday’s news sent SAVA stock to its highest point since February. Shares continued a recent surge well above their key moving averages, according to MarketSmith.com.
SAVA stock also has a strong Relative Strength Rating of 84, an indicator of 12-month performance. The best-performing stocks have RS Ratings of at least 80, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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