In true fashion and as predicted, 2019 is turning out to be a big year for Anavex Life Sciences Corp (NASDAQ: AVXL). The stock has continued to generate significant returns to our subscribers. Right from our last coverage, the stock has surged by more than 70%.
Anavex Life Sciences Corp Price Action
One of the catalysts fuelling the stock’s upside action has to be positive clinical trials. The Company has made significant progress on the development of its lead candidate drug. In the recent past, it has inked a strategic partnership with the Rett Syndrome Association of Australia as part of a clinical study in patients with Rett Syndrome.
The stocktaking a flight does not come as a surprise in response to the milestones achieved so far that underscore long-term prospects. Up by more than 100% for the year, the stock has emerged as a breakout play on pullbacks. Just as was the case in the first quarter, Anavex Life Sciences has continued to climb the ladder, in the second quarter, having turned bullish after a harrowing plunge last year.
After a recent spike, the stock is staring at the $4 mark, the next resistance level standing in the way of further upside action. Above the $4 resistance level, the stock should be on its way to recording a new 52-week high in line with the bullish momentum.
Any pullback from current highs will have to contend with support at the $2.80 level. Above the support level, the stock is likely to continue powering high. However, a violation of the support level could result in the stock plunging back to the $2 mark, the next support level.
What Does Anavex Life Sciences Corp Do?
Anavex Life Sciences bills itself as a clinical biopharmaceutical company engaged in the development of drugs for the treatment of central nervous system diseases. The Company is currently working on ANAVEX 2-73, a lead candidate drug in Phase 2a trial for Alzheimer disease as well as Rett Syndrome, epilepsy and Parkinson’s disease.
Clinical Study Progress
Anavex Life Sciences has taken a flight on investors reacting to the progress achieved on the development of the Company’s lead candidate drug. As of the end of the Second quarter, the biopharmaceutical company had completed 70% patient enrollment as part of a Phase 2 Anavex 2-73 Parkinson’s disease dementia study.
The Company is also progressing well on a Phase 2b/3 of ANAVEX 2-73 as a novel treatment for Alzheimer disease, having completed 20% patient enrollment.
“We are very pleased with the progress we made related to enrollment for the novel genomic marker driven CNS precision medicine clinical studies in Parkinson’s disease dementia and Alzheimer’s disease and initiating a second Rett syndrome study,” said, Christopher U Missing, Ph.D., President and Chief Executive Officer of Anavex.
The Biopharmaceutical Company has since received approval from the Australian Human Research Ethics Committee to commence Phase 2 double-blind, randomized placebo-controlled trial of ANAVEX 2-73 for the treatment of Rett Syndrome. Plans are underway to commence AVATAR study this quarter targeting 30 patients for seven weeks.
Rett Syndrome is a medical condition in which the brain does not mature, as it should. Currently, there are no approved therapies for the condition.
“We are proud to have partnered with the Rett Syndrome Association of Australia in the design of the AVATAR study and thrilled that we have taken an important step in advancing the development of a potential treatment for Rett syndrome,” said Christopher U Missing, Ph.D., Chief Executive Officer of Anavex.
Widening Net Loss Concern
Amidst the progress made in the development of the lead candidate drug, widening net loss continues to arouse concerns about Anavex Life Sciences. Net loss in the second quarter nearly doubled to $8 million or $0.17 a share from $4.8 million as of last year. Cash and cash equivalent shrunk to $19.5 million as of March 31, 2018, from $22.9 million as of September 30, 2018.
What Next For Anavex Life Sciences Corp
Anavex Life Science impressive run in the market looks set to continue as progress on the development of the lead candidate drug continues to trigger renewed investor interest. The Company making progress in the development of Alzheimer and Rett Syndrome treatments should continue to excite investors.
A combination of strong price performance and favorable technicals explains why 2019 is poised to be a big year for AVXL amidst clinical trial progress.
We will be updating our subscribers as soon as we know more. For the latest updates on AVXL, sign up below!
Disclosure: We have no position in AVXL and have not been compensated for this article.