Entering text into the input field will update the search result below

Anavex: Small Company Targeting The Holy Grail Of Medicine

Apr. 06, 2021 5:06 PM ETAnavex Life Sciences Corp. (AVXL)44 Comments

Summary

  • Anavex is targeting Alzheimer's disease and other neurodegenerative diseases.
  • It recently announced positive data from two of its programs.
  • The company's cash position needs improvement.
  • Looking for more investing ideas like this one? Get them exclusively at The Total Pharma Tracker. Learn More »

Anavex Life Sciences (NASDAQ:AVXL) is a larger-sized small-cap with a market cap of just over $1bn and a cash balance of just $47mn as of Dec. 31, 2020. The company is targeting a number of neurodegenerative diseases. Its pipeline looks like this:

Neuronal network with electrical activity of neuron cells 3D rendering illustration. Neuroscience, neurology, nervous system and impulse, brain activity, microbiology concepts. Artist vision.
Photo by libre de droit/iStock via Getty Images

About the TPT service

Thanks for reading. At the Total Pharma Tracker, we offer the following:-


Our Android app and website feature a set of tools for DIY investors, including a work-in-progress software where you can enter any ticker and get extensive curated research material.

For investors requiring hands-on support, our in-house experts go through our tools and find the best investible stocks, complete with buy/sell strategies and alerts.

Sign up now for our free trial, request access to our tools, and find out, at no cost to you, what we can do for you.

This article was written by

Avisol Capital Partners is made up of a team of medical experts, finance professionals and techies, all of whom invest their own money in the picks they share. They aim to help readers find the middle ground between value and growth investing, as they demystify the biopharma industry.

They lead the investing group Total Pharma Tracker where they offer a monthly updated catalyst database, an investability scoring system for quick reference ideas, and direct access in chat for dialogue and questions. Learn more.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (44)

Millennial Investment profile picture
Thank you for the informative article.

Hoping for success as this is a terrible indication (my family has had bad luck with this disease).

That being said, this one is many years from approval. I think about 4 years at best. Phase 3 will cost a ton of money and is no guarantee of success.

Other indications may prove fruitful but they seem far out. I foresee a lot of dilution and will be watching and cheering from the sidelines!

Best
j
nice article. Cash now has been increased to about 70 million, worth about 3 years of cushion, with a low cash burn rate. news is imminent in its various programs
J
thx for the article. fwiw Avxl has more cash now than I recall them ever having...they have existed for many years on much lower balances...using atm raises when needed. A three year runway is considerably longer than most clinical stage biotechs out there.
Ventureshadow profile picture
AVXL caused me severe FOMO. So have several other biotechs. All my FOMO concerns biotechs. I hereby swear off doing this again.
Montana13 profile picture
@Ventureshadow What is FOMO? Help me....
Ventureshadow profile picture
@Montana13 Fear Of Missing Out....
C
Anvs. Wow parabolic rise! Don’t know this one at all
Scott Eranger profile picture
I owned this company for years. I sold my remaining shares 9500 ( cost $3.18) for $26.79, in my IRA.

I think this company will break those highs. It's a news driven company.

I will buy some back, but am hoping for a pullback.
v
How long will phase 3 take from where we are today?
rx7no1 profile picture
@varendan Final readout mid 2022.
heraklestrading profile picture
Decent article outside of the cash comment. The company has 72 milllion on hand!
K
I am a strong believer of this company and are pretty confident they will get though with some of the trails.
looking very good:

twitter.com/...
k
ALZ strikes about half of all 85+ yo. I hope for all of our sakes that blarcamesine can help out with this horrible disease.
Montana13 profile picture
Another IONS. More debt, more charts and graphics, more Phase whatever, more dilution, reverse splits, words no one can pronounce...let me know when they have paid a dividend for 5 years in a row.
k
@Montana13 ok I'll send you a postcard from my retirement mansion (island?) and let you know
J
@Montana13 theres a thousand div stocks to choose from, go get em!
rx7no1 profile picture
@Montana13 this is not a company for you.
Check out NEE.
D
It’s kind of amazing how many retail investors forget how promising drug reports appear thru Phase 2 trials, and THEN — fail in Phase 3. Never count the chickens before they’ve hatched.

The next Rett Syndrome update will offer a clearer perspective on the risks. If they reflect a continued positive perspective then the risk equation may begin to smooth out.

Anavex 2-73 looks promising, but supposedly so did President Trump at one time, before imploding.🙄
petenj profile picture
@DigitCruncher Fair point about the dangers of PH3 readouts. You take money off the table prior to the final readouts. Its a 50/50 at best.
rx7no1 profile picture
@DigitCruncher president Trump never looked promising to anyone aware of his history of failure and grift. 🤷‍♂️
s
@rx7no1 #MeToo, but tell that to the ca. 50% of the voting population that are (impatiently) waiting for the Second Coming. Just when you thought it was safe to go back in the water....
C
The company is maybe worth now $300m at best. But in the end its all vaporware.
edwardclay profile picture
Own it.Making a case for needing cash is not a factor when dealing with progress
The Lawman profile picture
What works better than Anavex 2-73 for Retts, Alzheimers, and PDD?
B
@The Lawman there are plenty of competing drugs out there. And just to emphasise the point this has not been approved. Therefore until it completes PIII you cannot say it works.
rx7no1 profile picture
@Bioslicker please name competing drugs in phase 3 trials that have released phase 2 data as good as AVXL.
B
@rx7no1 Did I mention any competing drugs in PIII? I think if you read I wrote there are plenty of competing drugs, none of which have been approved. And the number of drugs that fail at PIII is a large number, which is why analysts still have a hefty discount on the value of a PIII asset. My main point being 2-73 is not approved for anything at this point in time, therefore a statement such as "What works better for Retts, Alzheimers and PDD", is a none statement. However for the benefit of patients I hope something gets approved soon.
Stox4luis profile picture
ANAVEX share price auction in top 10 Russell performers
fknol.com/...
Adambombfx profile picture
AVXL in since 2019 @ $1.71 holding super LONG and Strong on 5,000 shares !
T
Good article but saying they are short on cash contradicts your statements about how much cash they have. They have three years runway at least plus the voucher.
rx7no1 profile picture
@ThisIsHilarious voucher good but won’t get it until pediatric Rett FDA approved and that trial just starting so at best 18 months.
Adult Rett approval possible by year end.
b
@rx7no1 pediatric rett (EXCELLENCE trial) will be completed by in 2nd half of 2021 as of an update today. Therefor we could see and approval in less then 12 months given their fast track, orphan drug, and priority review voucher
MickeyD77 profile picture
It is likely that this drug will be approved for Rett syndrome soon as there are no other agents available for this horrible syndrome. Once it is approved, income will be generated and then physicians can use it (off label) for PD and ALZ to see how it works in the real world. I am rooting for it as nothing else works well with these neurological diseases and I am getting older.
b
Decent article outside of the cash comment. The company has 72 milllion on hand a review voucher worth about 100 million, and a low cash burn rate considering the amount of pivotal trials currently running. 2 years of runway here!
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About AVXL

SymbolLast Price% Chg
Market Cap
PE
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on AVXL

Related Stocks

SymbolLast Price% Chg
AVXL
--
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.