SEC investigates manipulated Alzheimer’s study claims

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New Delhi, Nov 18 | The US Securities and Exchange Commission (SEC) has launched an investigation into Texas-based Cassava Sciences. The agency will investigate claims that the company manipulated research data on its experimental Alzheimer’s drug, Simufilam, Biospace reported.

In an SEC filing on November 15, Cassava indicated it was cooperating with government investigations, although it did not name which government agency or agencies were requesting information. The company emphasized that an investigation is not a sign of wrongdoing, the report said.

Since 2015, the National Institutes of Health (NIH) has awarded up to $20 million in grants to the company and its academic collaborators. According to Remi Barbier, president and chief executive officer of Cassava, the NIH is also investigating the claims.

The original allegations occurred in a public petition in August asking the US Food and Drug Administration (FDA) to suspend the company’s clinical trials, the report said. The authors of the petition are two physicians who, according to the Wall Street Journal, “said they came to doubt Cassava’s research and have shorted its stock, betting the share price would fall once investors recognized the problem they found.”

The physicians are David Bredt, former neuroscience research chief at Johnson & Johnson and Eli Lilly, and Geoffrey Pitt, a cardiologist and professor at Weill Cornell Medicine. They argued that Cassava’s published research included images of experiments that seemed to have been manipulated using Photoshop or similar software. They are being represented by Jordan Thomas, partner and chair of the whistleblower representation practice at Labaton Sucharow. A second Citizen Petition was filed in October 2021, the report added.

Barbier responded in a statement in October, saying, “There is zero evidence, zero credible evidence, zero proof that I’ve ever engaged in, nor anyone I know, has ever engaged in funny business.”

He claims that short sellers – essentially betting that a stock price will go down – have lodged “outlandish accusations” against Cassava. “Under these conditions you would hope that someone in a position of authority is looking into the legitimacy of the allegations”, the report added.

Source: IANS

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Share Market Closing Bell: Nifty ends around 15,800, Sensex tanks 1,416 pts

Share Market Closing Bell: Nifty ends around 15,800, Sensex tanks 1,416 pts

On the back of Global Clues and SGX, Nifty opened on a gap down note & continued downside momentum throughout the day and closed the session at 15809.40 level with a loss of 430.90. However, Bank nifty closed the session at 33315.65 level with a loss of 848.05 points.

India VIX closed at 24.56 up by 10.13% which is a sign of more volatility in upcoming sessions.47 stocks out of NIFTY 50 closed in RED which suggest broad based selling. All the sectoral indices were ended in the red with metal, IT indices down 4-5 percent.

Despite one way fall, Stocks like ITC, DRREDDY, POWERGRID were the top gainers, While WIPRO, HCLTECH, INFY, TCS & TECHM were prime losers. On a daily chart, Nifty has formed a Bearish candle which indicates downside momentum for an upcoming session. Moreover, Nifty is showing support from horizontal line i.e., 15750 levels which is make or break level. In addition, Nifty has been sustained above the 21-Monthly Moving Average which indicates a bounce back from lower levels can be seen.

However, the momentum indicators MACD & Stochastic were trading with a negative crossover & trading in oversold zone which is a sign of sideways to negative trend in Nifty. The Nifty may find Strong support around 15700 levels, breaching below it can show more downside till 15500 levels while on the upside 16000 may act as an immediate hurdle. On the other hand, Bank nifty has support at 32800 levels while resistance at 34500 levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

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