Anavex Life Sciences Corp. (NASDAQ:AVXL) gave a first poster presentation on the 31-week safety data for mild-to-moderate Alzheimer’s Disease therapy drug 2-73, currently in phase IIa, at this week’s Alzheimer’s Association International Conference in Toronto, Canada.
With positive reception for Anavex’s first poster data presentation coupled with high anticipation for a second poster complete with efficacy data, Maxim analyst Jason Kolbert reiterates a Buy with a price target of $15.00, marking a 100% increase from where the shares last closed.
Right now, 2-73 is an orally available small molecule under investigation to see if it could be effective as an add-on to donepezil in treating Alzheimer’s. Whereas donepezil specializes in treating symptoms to help provide patients relief, 2-73 is unique in that it actually has possibilities that lie beyond simple alleviation. Anavex 2-73 might be able to prevent patients from suffering from Alzheimer’s, with the prospect to even halt the symptoms mid-disease, and at best, reverse the course of the disease. Kolbert sees a lot of potential for Anavex’s pipeline drug.
Kolbert notes that in “widely accepted theories… the formation of beta-amyloid and/or tau proteins is thought to cause the disease.” The biopharmaceutical company developed 2-73 with a new kind of theory in mind- where misfolded proteins and oxidative stress are crucial to Alzheimer’s disease development. Anavex 2-73 could change the game by not only addressing a safety profile, but also tackling the molecular biology of a disease.
From Kolbert’s perspective, “2-73 continues to demonstrate a positive safety profile and the MTD has been reached, at least in the most-frail patients.” With an effective Maximum Tolerated Dose (a prerequisite needed to continue to further clinical trials) and in week 5, demonstrated positive results for improvement in cognition as well as function, Kolbert remains bullish for AVXL.
As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks, Jason Kolbert is ranked #4,002 out of 4,083 analysts. To date, his success rate is 30%, averaging a loss of 14.9% in his annual returns.
TipRanks analytics exhibit AVXL as a Moderate Buy. Based on 2 analysts polled in the last 3 months, both rate a Buy. The 12-month average price target stands at $12.50, marking a nearly 67% upside from where the stock is currently trading.