Hoau-Yan Wang accused of fabricating data to secure $16m in NIH grants

  • Cassava Sciences adviser indicted on fraud charges
  • Hoau-Yan Wang obtained $16 million in federal research grants through falsified data
  • Wang allegedly manipulated images to support drug’s effectiveness

An adviser to Alzheimer’s drug developer Cassava Sciences, Hoau-Yan Wang, has been indicted by a federal grand jury for allegedly submitting falsified scientific data to obtain $16 million in grants from the National Institutes of Health. Wang, a medical professor at the City College of New York, co-wrote multiple journal articles supporting the drug Simufilam’s efficacy, which is currently undergoing late-stage testing for Alzheimer’s disease. The Justice Department stated that Wang used the NIH funding for early Phase 1 and Phase 2 testing of Simufilam as well as financing his laboratory work and salary. If convicted, he faces maximum prison sentences of five, ten, and twenty years for making false statements, major fraud against the government, and two counts of wire fraud respectively.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the indictment of Hoau-Yan Wang for submitting falsified data and its impact on Cassava Sciences. It also mentions the charges against him and potential consequences if convicted. However, it lacks some details about the specific falsifications and the role of Simufilam in Alzheimer’s treatment.
Noise Level: 3
Noise Justification: The article provides relevant information about a case of scientific misconduct involving falsified data and its consequences on the involved parties. It holds the individual accountable for their actions and mentions the potential impact on the drug’s development process. However, it could provide more details on the specific falsifications and the implications for the drug’s future development.
Public Companies: Cassava Sciences (Not provided)
Key People: Hoau-Yan Wang (Adviser to Cassava Sciences, Medical Professor at CUNY School of Medicine)

Financial Relevance: Yes
Financial Markets Impacted: Cassava Sciences stock
Financial Rating Justification: The article discusses the impact of a federal grand jury indictment on Cassava Sciences, a biopharmaceutical company, which led to a 42% drop in its stock price after trading was halted due to volatility. This directly affects the financial markets and the company’s value.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Legal and Judicial Events
Impact Rating Of The Extreme Event: Major
Extreme Rating Justification: An adviser to Alzheimer’s drug developer Cassava Sciences was indicted by a federal grand jury for allegedly submitting fabricated and falsified scientific data to obtain $16 million in grants from the National Institutes of Health. This event has major consequences as it involves fraud, misuse of funds, and potential impact on medical research and development.

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