Anavex Life Sciences Corp Common Stock (NASDAQ: AVXL)
Anavex Life Sciences is having an incredibly rough time in the market. However, this is the exact opposite of what I would expect at the moment. Just an hour ago, a report was released showing relatively strong results from a recent study. Today, we’ll talk about the study results, what we’re seeing in the market, and why I’m expecting to see big gains from AVXL relatively soon!
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AVXL Releases Phase 2a Study Data
Anavex Life Sciences has been working on a treatment for Alzheimer’s for quite some time now. Today, the company released a presentation with the efficacy data through 31 weeks of the ongoing ANAVEX 2-73 Phase 2a study. The study is focused on mild-to-moderate Alzheimer’s patients.
In the release, we learned that results are coming back positive at the moment. AVXL said that efficacy results demonstrate what appears to be a converging and consistent response for all quantitative endpoints. These endpoints include several cognitive and functional measures. At this point in the trial a stable MMSE and ADCS-ADL score was met. This is considered a positive outcome when studying a treatment for a disease state where progression is invariable over time. In a statement, Professor Harold Hampel, MD, PhD, Professor and AXA Research Fund Chair at Sorbonne Universities; Pierre and Marie Curie University, Paris; and member of Anavex’s Scientific Advisory Board had the following to say:
“This clinical data together with prior preclinical findings seem to confirm ANAVEX 2-73’s selective activation of the specific stress reducing and survival protein, Sigma-1 receptor. This seems to present a potential common pathway for rescuing major neurodevelopmental and neurodegenerative disease mechanisms, like in Autism-related disorders and Alzheimer’s disease. I believe the distinct mechanistic nature suggests the compound could be a candidate treatment for a precision medicine approach across a spectrum of different neurological and psychiatric diseases…”
How The Market Reacted To The News
This is where things get rather surprising. In general, when positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the news. In this particular case, the news released was overwhelmingly positive. So naturally, we can expect to see big gains. However, for some reason, the stock is on a steep fall at the moment. Currently (2:15), the stock is trading at $4.96 per share after a loss of $2.53 per share (33.79%) thus far today.
What We Can Expect To See Moving Forward
To be completely honest, Anavex Life Sciences stock is a very tough one to call. The news that was released today was overwhelmingly positive. However, the price action in the market is concerning, to say the least. Now, I’ve done quite a bit of research. I’ve checked all of my sources. I couldn’t find one negative bit of information that would lead to such a dramatic decline. In all reality, on a day like today with the news that was offered, I’d be expecting to see the exact opposite.
With that said, I have to go on what I have available to me at the moment. Considering what is available, I would have to say that I’m expecting to see gains. For some unknown reason, the value of AVXL fell like a brick. If you know the reason, please enlighten us in the comments below. This, in my opinion, has brought the stock to an incredibly strong discount. With the good news released today, excitement will likely come relatively soon, pushing the stock back to at least where it was, if not higher.
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What Do You Think?
Where do you think AVXL is headed moving forward? Join the discussion at TalkTRENDZ!
[Image Courtesy of Pixabay]