Wednesday, September 27, 2023

Cassava Sciences Inc. Reports $9.6 Million Net Loss for the 3rd Quarter, 2021.

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Cassava Sciences, Inc (Nasdaq: SAVA) published financial results for the third quarter, 2021. The results indicate a net loss of $9.6 million, which is $0.24 per share.

Cassava Sciences Inc
Cassava Sciences Inc Reports $9.6 Million Net Loss for the 3rd Quarter, 2021.

Introduction to Cassava Sciences Inc.

Cassava Sciences was founded by Remi Barnier, a Master’s degree holder from The University of Chicago, and graduated from Oberlin College. The founder also holds a position in the Santa Fe Institute of Sciences and Poetic Genetics Inc. Before that, Mr Remi was CEO of Exellixis, Inc and VP-Cooperate Development at XOMA Corp.

Cassava Inc is a clinical-stage biopharmaceutical company focused on neurosciences. The mission of the company is to detect and treat Alzheimer’s disease.

For your knowledge:

 Alzheimer’s disease is a brain disorder. It will kill your memory and thinking skills slowly. The result is you will be unable to carry simple day-to-day tasks. However, these symptoms differ from person to person. Some may experience a decline in thinking, finding correct words to speak, vision, and spatial issues. Indeed, the disease is caused due to the loss of connections between nerve cells (neurons).

As a fact, more than  6 million Americans age 65 and older may have Alzheimer’s. They are suffering from late-onset type Alzheimer’s. Early-onset Alzheimer’s can occur between a person’s 30s and mid-60s, a rare condition.

Cassava Inc is engaged to find and treat Alzheimer’s disease. The research and development work is costly, risky, and complex. However, since there are a lot s of people who suffer from the disease, it is essential to find a cure for the same.

Cassava Sciences Financial  Results for the 3rd Quarter 2021.

As per the company’s published financial results, a significant loss of $9.6 million can notice. The current stock price remains at $52.72, and the net drop for the share value for the third quarter is $0.24 per share.

Compared to the same Quarter of the year 2020, the company indicates a loss in the same vein but less than t Net loss of the third quarter, 2020 is $1.4 million, or $0.24 per share.

However, the net cash on hand of Cassava Sciences Inc is significantly increased over time. For example, in the year 2017, the annual money at hand was $10 Million, and in the year 2020, it was increased by 940%, or 94 million.

Net cash operation for the entire year, 2021 is expected to be approximately $25 -$30 million, which is a slight increase from previous guidance of $20 – $25 million due to the prepayment made to a contract research organization. In addition, the research is engaged with a phase 3 clinical program with similar.

Moreover, an additional $22.0 million was spent on purchasing office complexes in Austin, Texas. The office complex to serve as the future headquarters of Cassava Sciences Inc. As of 30, September 2021 cash and cash equals are at the value of $241.5 million with no debt.

Financial Highlights of Cassava Inc. for the Third Quarter, 2021

  • At the end of the third quarter, cash and cash equivalent are $241.5 with no debt, a 258.28% increase compared to the end of the year 2020.
  • A slight increase in the net cash operations for full-year can notice. According to the previous guide, the expected net cash operations were $20-$25 million. However, due to the prepayment of contract research organization engaged with the clinical trial management services in phase 3 studies, net cash operations for the entire year is now expected as $25-$30 million.
  • Net cash operations during the first three quarters remain at $22.2 million. In addition, net reimbursements received from the National Institute of Health are $22.0 million.
  • Additionally, $ 22.0 million was spent to acquire an office complex in Austin, Texas. Indeed, the new office complex will be the future headquarters of Cassava Sciences Inc.
  • Research and Development records a significant increment of 2,000% compared to the same period in the year R & D expenses for the first three-quarters of the year 2021 id $8.0 million. In the year 2020, it was recorded as $0.4 million for the same period.
  • Moreover, research grant funding reimbursement of $2.0 million was received from the NIH. The grant was recorded as a reduction of R & D expenses for the period. For the same quarter of the year 2020, reimbursement was recorded as $1.0 million.
  • General and administration expenses recorded a slight increase compared to the same period in the year 2020. in the year 2020, general and administrative costs were recorded as $1.0 million, and in the year 2021, it was & $ 1.7 million. The main reason for the increment of general and administrative cost is higher legal and insurance cost and depreciation and amortization for the newly purchased office complex in Austin, Texas.


I/we are a long investor in Cassava Sciences (NYSE: SAVA) with shares and options positions. I/we are in no way associated with Cassava Sciences, nor do I/we represent them in any capacity. Cassava Sciences has not endorsed these statements.

These are purely the author’s opinions based on their observations of market activity and research conducted by them about the company in the past from information that is available publicly.

Excerpts from various sources, including but not limited to other investors, have been used to shed light on factual data in this article. The glossary of all the sources used can be found at the end of the article. This article is purely for educational purposes and is not intended to be medical or financial advice.

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