Cassava Sciences Hit with Legal Issues and Western Digital in Talks for A Merger
Cassava Sciences is a healthcare company that focuses on biotechnology. They research and develop drugs to treat neurodegenerative diseases, and they are in Austin, Texas. They have a market cap of $3.236 billion, which makes them one of the larger ones in the industry.
On Wednesday, it was announced that a citizen petition was filed by a former SEC lawyer regarding Cassava Sciences. The lawyer, Jordan Thomas, accused Cassava of manipulating their data results on their drug Simufilam an Alzheimer drug, to be approved by the FDA, which Cassava denied. The FDA will look to investigate this, but Cassava’s CEO and analysts aren’t worried as citizen petitions are false most of the time. Even then, investors got scared, and Cassava closed the day at $80.86, down 31.38%.
Western Digital is a technology company that develops and manufactures data storage devices. They are located near the Bay Area of California, and they have a market cap of $20.073 billion.
On Wednesday, it was announced that Western Digital and Kioxia Holdings were in talks of merging, which would shake up the industry. The deal could be worth up to $20 billion, even though talks could still fall apart. This would create a large competitor for Samsung in the memory chip business, which Samsung completely dominates. However, it’s still possible that Kioxia enters the market through an IPO themselves, which makes these negotiations very important. Western Digital finished at $65.50 on Wednesday, up 7.80%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.