Cassava Sciences Reports $44.2 Million Net Loss in Q2 2025, Shifts Focus to Simufilam Development

Cassava Sciences, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $44.2 million for the three months ended June 30, 2025, compared to a net income of $6.2 million during the same period in 2024. For the first half of 2025, the net loss totaled $67.6 million, a stark contrast to a net income of $31.2 million in the prior year. The company's accumulated deficit has now reached $472.7 million, reflecting ongoing financial strain primarily due to research and development expenses and legal costs.

Operating expenses for the second quarter of 2025 were $45.4 million, down from $61.4 million in the same quarter of 2024, largely due to a 66% decrease in research and development costs, which fell to $5.1 million from $15.2 million. This reduction is attributed to the discontinuation of the Alzheimer's disease development program, which was completed in the second quarter of 2025. General and administrative expenses also decreased to $40.3 million from $46.2 million, influenced by a significant SEC-related loss contingency recorded in 2024 that was not repeated in 2025.

In terms of strategic developments, Cassava Sciences has shifted its focus to the development of simufilam for Tuberous Sclerosis Complex (TSC)-related epilepsy. The company entered into a License Agreement with Yale University on February 26, 2025, granting it exclusive rights to certain intellectual property related to simufilam. This agreement includes milestone payments totaling up to $4.5 million and tiered royalties on net sales of licensed products. The company plans to file an Investigational New Drug (IND) application for simufilam in TSC-related epilepsy, with a clinical trial expected to begin in the first half of 2026.

Operationally, Cassava Sciences reported cash and cash equivalents of $112.4 million as of June 30, 2025, down from $128.6 million at the end of 2024. The company utilized $16.3 million in cash for operating activities during the first half of 2025, a decrease from $37.4 million in the same period of 2024. The reduction in cash usage is attributed to lower operating expenses, although the company anticipates continued significant cash requirements for ongoing research and development activities.

Looking ahead, Cassava Sciences expects to continue incurring substantial losses as it advances its product candidates through clinical trials. The company is actively seeking additional funding to support its operations, although it acknowledges the uncertainty surrounding the availability of financing on favorable terms. Management believes that its current cash position will be sufficient to meet working capital needs for at least the next 12 months, but the future remains contingent on the success of its clinical programs and market acceptance of its products.