Cassava Sciences Reports $23.4 Million Net Loss and Increased Operating Expenses in Latest Quarter

Cassava Sciences, Inc. reported a significant financial downturn in its latest quarterly filing, revealing a net loss of $23.4 million for the three months ending March 31, 2025, compared to a net income of $25.0 million during the same period in 2024. This shift is attributed primarily to the absence of revenue from product sales, as the company has yet to commercialize any of its drug candidates. The accumulated deficit has now reached $428.5 million, reflecting ongoing challenges in the company's financial performance.

The company's operating expenses increased to $24.6 million in the first quarter of 2025, up from $19.9 million in the prior year. This rise was driven by a notable increase in general and administrative expenses, which surged to $10.9 million from $3.7 million, largely due to legal costs associated with ongoing litigation and a lack of insurance recoveries that had previously offset such expenses. Research and development costs decreased to $13.7 million from $16.2 million, primarily due to the discontinuation of clinical trials for Alzheimer’s disease, although this was partially offset by increased stock-based compensation expenses.

In terms of strategic developments, Cassava Sciences has entered into a License Agreement with Yale University, granting the company exclusive rights to develop and commercialize simufilam for Tuberous Sclerosis Complex-related epilepsy. This agreement includes milestone payments totaling up to $4.5 million and tiered royalties on net sales. The company is also focusing on simufilam as its lead therapeutic candidate, having phased out its Alzheimer’s disease program following disappointing clinical trial results.

Operationally, Cassava Sciences has not generated any product revenue and continues to rely on external funding to support its research and development activities. As of March 31, 2025, the company had cash and cash equivalents of $117.3 million, which management believes will be sufficient to meet its operational needs for at least the next 12 months. However, the company may seek additional funding through public or private financing, depending on market conditions and the availability of favorable terms.

Looking ahead, Cassava Sciences anticipates continued significant cash requirements as it progresses with its development plans for simufilam and explores potential new indications. The company expects research and development expenses to decrease in the near term due to the discontinuation of its Alzheimer’s program, but this will be balanced against costs associated with the new TSC-related epilepsy initiative. The company remains committed to its mission of addressing central nervous system disorders, despite the financial and operational challenges it faces.