Reports of DOJ probe into Cassava 'old news in new fish wrapper,' CEO says

Cassava Sciences CEO Remi Barbier told Fierce Biotech that the report of a new Department of Justice (DOJ) criminal investigation into the scientific practices of the Alzheimer’s disease biotech is “old news in [a] new fish wrapper.”

Reuters reported Wednesday that the DOJ had opened a criminal investigation to probe whether the company manipulated research results for the Alzheimer’s treatment simufilam. Citing unnamed people familiar with the inquiry, the news wire said that the investigation is being conducted by personnel who focus on determining whether companies mislead or defraud investors.

In a separate statement, Cassava said the report refers to disclosures from November 2021 that certain government agencies had requested information from the company in response to allegations of research misconduct made by investors earlier that year.

Cassava has previously been dogged by allegations of research misconduct involving simufilam, which is being tested in a phase 3 study for Alzheimer’s. A citizen petition filed in August 2021 alleged Cassava manipulated images used in multiple scientific journals.

“I have said from the onset that allegations of research misconduct are false,” Barbier said in the Wednesday statement. “No government agency has informed us that it has found supporting evidence of research misconduct or any other wrong-doing, and for good reason—there is no supporting evidence for allegations of research misconduct.”

Cassava said it has been voluntarily cooperating with the ongoing government probes and that no charges have been filed, nor have the agencies informed them of any incidences of wrongdoing. In the company statement, Barbier again pushed the blame onto short sellers, who he claimed have earned $100 million from shorting the "SAVA" ticker.

“For a $100 million payday, some investors may be incentivized to make false allegations,” he said, noting that no officer or director from the company has sold stock in over a decade. “Our goal is to help people with Alzheimer’s disease, not an easy payday.”

Cassava’s troubles were brought back into the headlines last week when Science posted an investigative report into the alleged research misconduct and problems with other prominent Alzheimer’s research.