Anavex (AVXL) is a biopharmaceutical company dedicated to the development of novel drug candidates to treat central nervous system diseases, notes small cap expert Tom Bishop, editor of BI Research.
Its lead candidate, Anavex2-73 (A2-73) is currently conducting a Phase 2b/3 clinical trial on Alzheimer’s. A2-73 is an orally available drug candidate that targets sigma-1 and muscarinic receptors (rather than amyloid plaques), with a clean safety profile that shows promise to halt and/or possibly even reverse the course of Alzheimer’s if taken early.
A2-73 has also initiated a Phase 2 clinical trial for Parkinson’s dementia after preclinical testing funded by the Michael J. Fox Foundation. In addition A2-73 has shown promising preclinical results for the treatment of Rett Syndrome and has just begun a Phase 2 trial.
On 3/4 the company announced that new independent data had been published in a peer reviewed journal, Cells, that shows Anavex2-73 induces cellular recycling (by activating the sigma-1 receptor) linked to the prevention and treatment of age associated diseases like Alzheimer’s, ALS and Parkinson’s.
The process is more scientifically termed “autophagy.” In less scientific terms, A2-73 essentially wakes up the janitor of the brain, who’s been slacking off, kicks him and tells him to get back to work, in this case doing his job of cleaning up the misfolded proteins and stuff that builds up in the brain causing loss of brain function. This published paper simply supports that in a prestigious scientific journal.
Also, on 2/7 Anavex held a year-end conference call with a brief update on its three trials and on 2/21 the xompany made a presentation at a big Alzheimer’s conference. Anavex also expects Parkinson’s data later this year and it is pleased with the pace of enrollments in Australia.
Overall, Anavex continues to trade at a mere pittance compared to the annual sales of a potentially successful Alzheimer’s drug and therefore remains a "buy".
