These are unusual days for the American banal market, with the exuberance of investors defying the bleakest of outlooks. Yet, adjacent successful this warped moment, the outsized occurrence past twelvemonth of a tiny institution called Cassava Sciences seemed exceptional. With lone 2 twelve employees and nary merchandise revenue, the Austin-based biotech steadfast generated a stampede of capitalist enthusiasm that caused its banal to emergence astir 15 100 per cent. Cassava is tally by Remi Barbier, a genial entrepreneur who wears wire-rimmed glasses and is fixed to ambitious predictions. It has been processing a caller attraction for Alzheimer’s, a pill called Simufilam, which is designed to onslaught the illness by fixing abnormalities of the macromolecule filamin A. The medicine has not yet received support from the Food and Drug Administration, but objective trials are nether way.
Six cardinal Americans endure from Alzheimer’s, and immoderate cause that could ameliorate the information would correspond a milestone successful nationalist health—and marque billions of dollars. Cassava issued property releases touting the results of its objective trials, and Barbier suggested that Simufilam was “the archetypal drug—to our knowledge—that tin reconstruct cognition.” Word dispersed astir the merchandise connected online forums, including Reddit, and Cassava became a “meme stock,” surging successful worth arsenic it was hyped by comparatively unsophisticated retail time traders. Cassava’s banal awesome is sava, and devotees of the institution called themselves “savages.” They weren’t needfully scientists, but they felt definite that Cassava would, successful the words of 1 Redditor, “eradicate Alzheimer’s.” Another stockholder declared, “Ever since I seen the 10% conginitive [sic] betterment I’ve been convinced.” Barbier, meanwhile, told Fortune that a halfway radical of organization investors had looked astatine the preliminary information and concluded that, from an concern perspective, Cassava mightiness beryllium the adjacent “Google oregon Tesla.” Last summer, a idiosyncratic connected the Web tract Seeking Alpha proclaimed, “cassava sciences is connected the brink of making aesculapian history,” enthusing, “CEOs of nationalist companies don’t marque these kinds of statements unless they tin backmost it up.” In July, Cassava’s banal terms surged to a 100 and thirty-five dollars, giving it a marketplace worth of astir 5 cardinal dollars.