Cassava Sciences Inc (NASDAQ:SAVA) stock is trading lower on Wednesday on a heavy session volume of 14.35 million, as per data from Benzinga Pro.

The Board of Directors appointed Richard (Rick) Barry as Executive Chairman and the company's principal executive officer, effective immediately. The company is searching for a new permanent CEO.

Mr. Barry succeeds Remi Barbier, the Company's Chairman, President, and CEO, who resigned and will remain employed by the Company until September 13, 2024, in a non-executive capacity, without duties or responsibilities.

Lindsay Burns, SVP of Neuroscience at Cassava, is also leaving the company. Cassava and Dr. Burns have agreed that she step down from her role with the company, effective immediately.

Following her separation from the company and for a one-year period, Dr. Burns will furnish consulting services as and to the extent reasonably requested by Cassava to provide information and support for scientific research and/or obtain governmental approval for the company's products.

Cassava may, at its sole discretion, extend the term of the consulting agreement by up to an additional year.

Related: Cassava Sciences Cooperates With DOJ, SEC On Controversial Alzheimer's Drug Investigation.

Mr. Barry said. "While our priority remains the development of a potentially effective treatment for Alzheimer's disease, the Board has a steadfast commitment to doing so with transparency, accountability, and highest ethical business practices." Among the actions the company is taking are:

• New Leadership: The Board plans to separate the Chairman and CEO roles after identifying a new CEO.
• Single-minded Commitment to Scientific Rigor and Honest Transparency: The company's mission is to evaluate simufilam as a groundbreaking Alzheimer's treatment, focusing on scientific rigor and transparency with patients, government agencies, and investors. All study results will be promptly and accurately posted on clinicaltrials.gov.
• Rigorous Clinical Trials: The ongoing Phase 3 trials adhere to FDA and industry standards to ensure the integrity of results. Under the FDA-reviewed protocols, no company personnel know or will know which subjects receive the drug or placebo.
• Blinding information is maintained by a small group at CRO, Premier Research. Additionally, company personnel do not have access to sub-study results or other data that could reveal which patients are on placebo.
• All data is sent directly to Premier Research. Statistical analyses are conducted by professional biostatisticians at Pentara Corporation, with trial results transmitted to them independently by the CRO, without company involvement.
• Transparency in Communications and Reporting: Cassava is dedicated to maintaining transparent communication with its stakeholders. The company will resume quarterly analyst calls and ensure management is accessible to journalists. Cassava is also reviewing its disclosure practices to provide clear, comprehensive information. Ongoing dialogues with shareholders, employees, customers, regulators, and the community will shape the company's governance practices.

Price Action: SAVA shares are down 27.20% at $9.85 at the last check on Wednesday.

• Alzheimer's Drug Trial Results Questioned After 'Damning' FDA Inspection Report.