Anavex Life Sciences Corp. (AVXL) Stock | Moving Forward with Lead Candidate After FDA Guidance


Anavex Life Sciences Corp. (NASDAQ: AVXL)


Anavex Life Sciences Corp. (AVXL), a biopharmaceutical company yesterday announced that it will be moving forward with its lead candidate ANAVEX 2-73. The company received guidance from the FDA which confirmed the company’s plan to move forward. ANAVEX 2-73 is used for the treatment of Alzheimer’s disease.  


Anavex Life Sciences Corp. CEO Comments

“The utilization of Adaptive Design and Population Pharmacokinetics/Pharmacodynamics (PK/PD) modeling is a major strength of the Phase 2a study.  By implementing a different, innovative trial design for ANAVEX 2-73 in Alzheimer’s treatment, it is believed that this is more efficient than a conventional Phase 2 study since it is designed to reduce the risk of a Phase 3 trial failure, as well as receiving the best quality information we can about ANAVEX 2-73,” said Christopher U. Missling, PhD, President and Chief Executive Officer of Anavex.  “The advantage of having Population PK/PD data is of value for the development of ANAVEX 2-73 in Alzheimer’s disease and also for other potential CNS indications.”   Globe Newswire


AVXL Technical Analysis


AVXL gapped up in price yesterday to $4.10, up from the prior day’s close of $3.24, which is a 27% increase on the favorable news. Taking a look at the daily chart, we can see the last time AVXL traded above this price level was on November 16th, when it closed at $4.22.  Taking a further look back on the daily chart, we can see that AVXL had a big spike up back on October 6th when it traded at $1.37. A month later on November 3rd it was trading at a high of $14.84, a 983% increase in price. Since that huge spike up, AVXL has given back most of that move up. It’s been an exciting ride of speculation in AVXL over the past month as the stock has been newly uplisted to trading on the NASDAQ market back on October 26th. AVXL had positive news on its lead candidate ANAVEX 2-73 back on November 9th. AVXL is trying to find its equilibrium price and the spike up may have been due to over speculation, which can also be said for the quick spike down as well. I would be looking for AVXL to rebound a bit and settle somewhere in the middle. AVXL has a float of 27.89 million shares and was trading over 2 times the normal daily trading volume. AVXL did reach pre market highs of $4.33, but gave back $0.23 at the open, or equivalent to 5%. For trading purposes, my entry point would have been $4.20 looking for a run to $5. My stop loss would have been $4.00, fearing anything below that and the stock would start to fill in the gap up.  


Company Profile

Anavex Life Sciences Corp., a biopharmaceutical company, is engaged in the discovery and development of drugs for the treatment of Alzheimer’s disease, central nervous system diseases, and pain and various cancers. Its lead drug candidates include ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), which is in a Phase IIa clinical trial for the treatment of Alzheimer’s disease. The company’s product candidates also include ANAVEX 3-71, a drug candidate that is effective in very small doses against the major Alzheimer’s hallmarks in transgenic (3xTg-AD) mice via sigma-1 receptor activation and M1 muscarinic allosteric modulation; ANAVEX 1-41, a sigma-1 agonist for neuroprotective application; and ANAVEX 1037, ANAVEX 1079, and ANAVEX 1519 for the treatment of pain and various cancers. Anavex Life Sciences Corp. was founded in 2006 and is headquartered in New York, New York.  Yahoo Finance