By Colin Kellaher

 

Shares of Cassava Sciences Inc. fell more than 15% Friday, erasing much of Thursday's big gains, after the biotechnology company downplayed a published report that the Securities and Exchange Commission is preparing to close an investigation into claims of study manipulation.

The Austin, Texas, company said in an SEC filing that it hasn't received any termination letter or the like from any government agency regarding any requests for corporate information and documents.

Cassava last November disclosed that undisclosed government agencies had made confidential requests for information and documents, and the company on Friday said those requests remain confidential.

The Wall Street Journal, citing people familiar with the matter, reported in November that the SEC was looking into claims that Cassava had manipulated research results of its experimental drug for Alzheimer's disease.

On Thursday, Seeking Alpha, citing a document it said was obtained through a request under the Freedom of Information Act, or FOIA, reported that the SEC was closing its case, sending Cassava shares up nearly 36% during Thursday's trading session.

Cassava on Friday said it is "unable to establish the legitimacy" of the communications purportedly sent from a government agency following a FOIA request, and that it "expressly disclaims any obligation to respond to any reports or rumors related to the topic of FOIA."

Cassava shares were recently changing hands at $42.58, down nearly 17%.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

September 23, 2022 11:34 ET (15:34 GMT)

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