Anavex Life Sciences Corp (OTCMKTS:AVXL) Down Again

Anavex Life Sciences Corp (OTCMKTS:AVXL)

Anavex Life Sciences Corp (OTCMKTS:AVXL) is a clinical stage biotechnology firm headquartered in New York City. Anavex develops therapies for the treatment of neurodegenerative and neurodevelopmental diseases such as Alzheimers, Parkinson’s, and Rett Syndrome. On Kune 9th, Anavex’s CEO, Dr. Chris Missling, presented at the renowned Jeffries 2017 Global Healthcare Conference in New York City. Typically such presentations serve as a boost to a biotech’s share price – however AVXL has dropped slightly since that presentation.

The lead product candidate from Anavex Life Sciences Corp (OTCMKTS:AVXL) is Anavex 2-73 for the indications of Alzheimer’s, cognition in neuropsychiatric epilepsy, Parkinson’s, Multiple Sclerosis, and Rett Syndrome. Anavex 2-73 just completed a Phase 2a Clinical trial and while reported results were positive, they were not without critics. Anavex 2-73 reportedly stabilized Alzheimer’s disease for a period of one year, becoming the first drug to accomplish the milestone. However some observers believe the trials were too small and, therefore, the results should not have the same level of confidence attached to them despite the meeting of stated endpoints. Anavex Life Sciences Corp (OTCMKTS:AVXL) also has two drug candidates that have completed their preclinical trials for three indications – Parkinson’s, Depression, and Stroke. Five other durg candidates are in preclinical trials for indications of varying types of cancer.

In late 2015, shares of Anavex Life Sciences Corp (OTCMKTS:AVXL) were briefly trading around $15. Since March AVXL shares have been in a relatively tight trading range between $5.60 and $6.30. However support at the $5.60 level disappeared last week as each day saw successively lower lows which ended with AVXL closing at $5.36 after hitting lows of $5.10. AVXL is slightly down in early morning trading today.

Anavex Life Sciences Corp (OTCMKTS:AVXL) shareholders have historically been diluted at high levels. In 2012, there were 7.04 million shares outstanding and by 2016 there were over 35.15 million shares outstanding. More recently, share performance has been positive. YTD AVXL shares are up over 35% and up almost 25% for the year. While AVXL has a $15 price target, short-sellers still represent over 14% of the stock’s float, which likely indicates a lack of strong positive sentiment for the stock.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.