Cassava Sciences Issues Statement on Former Science Advisor

Rhea-AI Summary

Cassava Sciences (Nasdaq: SAVA) announced that a federal grand jury indicted Dr. Hoau-Yan Wang, a former science advisor and tenured medical professor, for allegedly defrauding the U.S. National Institutes of Health (NIH). The indictment claims Dr. Wang engaged in illegal activities related to grant applications between 2017 and 2021, resulting in approximately $16 million in grants. These grants were connected to the early development phases of Cassava's drug candidate and diagnostic test. The company emphasized that Dr. Wang and his former university have no involvement in the Phase 3 clinical trials of simufilam, their lead drug candidate for Alzheimer's disease treatment.

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• Cassava Sciences clarified that Dr. Wang and his former university had no involvement in the Phase 3 clinical trials of simufilam.

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• A former science advisor to Cassava Sciences has been indicted for allegedly defrauding the NIH out of approximately $16 million in grants.

AUSTIN, Texas, June 28, 2024 (GLOBE NEWSWIRE) -- Cassava Sciences, Inc. (Nasdaq: SAVA), reported it has learned today that a federal grand jury returned an indictment charging Hoau-Yan Wang for allegedly defrauding the U.S. National Institutes of Health (NIH). Hoau-Yan Wang was a tenured medical professor at a public university’s medical school as well as a former paid science advisor to Cassava Sciences.

According to public court documents, Dr. Wang engaged in illegal behavior to defraud the government through grant applications made to the NIH, resulting in the award of approximately $16 million in grants approximately 2017 to 2021 on behalf of himself and the Company. Wang’s work under these grants was related to the early development phases of the Company’s drug candidate and diagnostic test and how these were intended to work.

Dr. Wang and his former public university medical school have had no involvement in the Company’s Phase 3 clinical trials of simufilam.

Simufilam is the Company’s lead drug candidate proposed for treatment of Alzheimer’s disease.

For More Information Contact:

Eric Schoen, Chief Financial Officer
(512) 501-2450 or ESchoen@CassavaSciences.com

FAQ

What recent legal issue has impacted Cassava Sciences (SAVA)?

A federal grand jury indicted a former science advisor to Cassava Sciences for allegedly defrauding the NIH out of approximately $16 million in grants.

Was Cassava Sciences involved in the alleged NIH fraud?

The indictment involves Dr. Hoau-Yan Wang's actions between 2017 and 2021. Cassava Sciences emphasized that the company had no involvement in the alleged fraud.

Who is Dr. Hoau-Yan Wang in relation to Cassava Sciences (SAVA)?

Dr. Hoau-Yan Wang is a former paid science advisor for Cassava Sciences and a tenured medical professor.

What is the status of Cassava Sciences' (SAVA) simufilam trials?

Cassava Sciences confirmed that Dr. Wang and his former university have no involvement in the ongoing Phase 3 clinical trials of simufilam.