New York City College of Medicine Professor Hoau-Yan Wang (Hoau-Yan Wang in English) was indicted by a federal grand jury this week for allegedly submitting falsified scientific data to obtain $16 million in grants from the U.S. National Institutes of Health.
Wang is an important consultant for Cassava Sciences, a developer of Alzheimer’s disease drugs. He has collaborated with Cassava on several journal articles supporting the scientific principles of the Alzheimer’s drug Simufilam, which is currently undergoing late-stage testing for Alzheimer’s disease.
On Friday, the Department of Justice announced that the grand jury issued the indictment on Thursday. The press release did not mention Cassava Sciences or the name Simufilam, only referring to a publicly traded biopharmaceutical company in Texas. Cassava Sciences is headquartered in Austin, Texas.
Following the news, Cassava Sciences’ stock fell by 42% on Friday, prompting a suspension in trading due to volatility.
Court documents allege that the 67-year-old Wang Hauo-Yan, between May 2015 and April 2023, allegedly falsified scientific data in his name and on behalf of the biopharmaceutical company in grant applications submitted to the U.S. National Institutes of Health.
The fraudulent grant applications submitted to the NIH were intended to fund scientific research for potential treatments and diagnostic tests for Alzheimer’s disease. Wang reportedly received approximately $16 million in grants from around 2017 to 2021, with part of the funding allocated to laboratory work and salaries.
The indictment states that Wang utilized NIH funds for early-phase testing of drugs, as well as funding for his laboratory work and salaries.
The Department of Justice indicates that Wang’s falsified actions involved the expected mechanisms of action for drugs and subsequent diagnostic test results showing improvement in biological markers indicating the drugs were having the desired effects.
Wang Hauo-Yan has been charged with making false statements, major government fraud, and two counts of wire fraud. If convicted, the maximum sentences for these charges are 5, 10, and 20 years, respectively.
Previously, experts had expressed doubts about the mechanism of action of Simufilam and the claims of improved symptoms in patients during clinical trials, with some questioning possible manipulation of trial results by the pharmaceutical company and Wang Hauo-Yan.
In July 2022, the international journal “Science” reported that neuroscientist Matthew Schrag from Vanderbilt University investigated and found that Wang Hauo-Yan had been collaborating with Cassava Sciences for 15 years and also served as a consultant for the company.
According to the official website of New York City College of Medicine, Wang Hauo-Yan graduated from China Medical College in 1981, obtained a master’s degree from St. John’s University in New York in 1985, and earned a PhD from the Medical College of Pennsylvania in 1988.
In 2023, the expert committee at New York City College concluded after an internal investigation that Wang Hauo-Yan had been “reckless” in his research on experimental Alzheimer’s drugs, failing to retain or provide original data, constituting serious research misconduct. However, the school did not announce any final actions.
Committee members spent months obtaining Wang Hauo-Yan’s research documents with the intervention of the college dean. He claimed to have discarded a box containing some experimental records at the request of the college during the Covid pandemic, but the school denied ever making such a request.
It is estimated that as many as 6 million people in the U.S. are affected by Alzheimer’s disease, and patients and their families are eagerly anticipating the release of Simufilam. Investors also have significant confidence in the drug, with pharmaceutical stock prices soaring after each round of trial results, at times exceeding 1500%.
Wang Hauo-Yan and Cassava Sciences have not responded to requests for comments from The Epoch Times.