Anavex Life Sciences Corp. (NASDAQ:AVXL) Just Strengthened Its Chances Of Success

One of our most closely watched biotechs is Anavex Life Sciences Corp. (NASDAQ:AVXL). The company is a development stage biotech working to bring an alternative form of the current in-development Alzheimer's treatments to market. It has had a pretty poor year from a shareholder sentiment perspective, and attitudes towards its lead candidate across the financial analyst space are pretty unenthusiastic. Fundamental developments have flown in the face of both shareholder sentiment and analyst perspective over the past quarter, however, and Anavex gained around 50% market capitalization throughout November.Over the last few days, the company has corrected to trade just shy of 10% off these highs. With a couple of key updates just released, and some catalysts just around the corner, we think this correction may be an opportunity to pick up a discount exposure ahead of a return to the upside momentum.For those not familiar with the company, as mentioned above, Anavex is developing an Alzheimer's therapy called Anavex 2-73. Instead of the standard tau protein and amyloid plaque associated MOAs of the current investigative therapeutics, 2-73 triggers the activation of what are called Sigma-1 receptors. In doing so, the drug aims to trigger cell homeostasis in the cells that have been damaged as part of the neurodegenerative impact of the disease, and can theoretically repair these damaged cells.This is a pretty revolutionary approach, and it's one that has ruffled a few feathers in the space. To explain why, we will revert to a sentence we published last back in October – that if the theory behind 2-73 proves accurate, billions of dollars have been spent trying to create drugs that clear up Alzheimer’s mess, rather than target its cause. Anavex is going after the cause.So what did the latest updates say?Well, the company has just bolstered its Scientific Advisory Board with three really solid additions, and we think these are not just great hires from an advisory perspective, but also from a root planting perspective. That is, each new add has deep roots in the neurodegenerative space, both on the commercial side and the establishment side (universities, research hospitals etc.) and it's this sort of network building that's going to separate Anavex from other companies with comparable market capitalization as its lead candidate advances into the late stage clinic.The three hires in question are Drs. Tanya Simuni, Daniel Weintraub and Kalpana Merchant. Between them, career experience spans names like the Michael J. Fox Foundation for Parkinson’s Research, the Executive Committee of the Parkinson Study Group (PSG), Eli Lilly and Co (NYSE:LLY), Tailored Therapeutics, the University of Washington and Pharmacia Corp, which Pfizer Inc.(NYSE:PFE) acquired back in 2003.For a company the size of Anavex, pedigree like that on an Advisory Board can make a huge difference, and it's rare at this end of the space.Also recently announced is that CEO Chris Missling will participate on a panel comprising fourteen representatives from government and industry at the Fourth Annual Mental Health Parity and Addiction Equity Act (MHPAEA) Business Roundtable. This is happening on December 6, and while its not what we might call a game changing catalyst, it's representative of the recognition Anavex is getting in the space, as well as a likely reputation booster, in terms of educating those attendees who are not yet familiar with Anavex as to the company's approach.What's the takeaway?Well, this company is undervalued as things stand, based on the potential of its lead asset, and even in light of the recent gains. Add to this the 10% correction, and by proxy, discount, and the buy thesis strengthens further. We know there's some dilution risk, but that's standard at this end of the space, and investors will struggle to find something that offers a comparable upside if things run smoothly.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.