FBR analyst Christopher James offers insight on shares of Anavex Life Sciences Corp. (NASDAQ:AVXL) after the company reported its third quarter financial results and outlined an ambitious corporate update on its drug development program. As Anavex enters the next quarter, the drug maker’s focus remains a laser on its developmental pipeline.

Anavex’s pipeline includes lead candidate Anavex 2-73 (AV2-73) designed for the potential treatment of neurodegenerative and central nervous system disorders, such as Alzheimer’s disease (AD) and Rett syndrome. James views a great deal of attractive opportunity in this field, and with a granted Orphan Drug Designation from the FDA on the table, as well as significant improvement demonstrated already in preclinical studies in animal models, James remains confident on the future of this biotech company. The analyst reiterates an Outperform rating on AVXL with a $10 price target, marking a 189% increase from where the shares last closed.

James highlights, “We provide three key takeaways for the quarter: (1) following the presentation of data from an ongoing Phase IIa study (please refer to our previous note for additional details), Anavex will proceed with Phase II/III placebo-controlled studies with AV2-73 in patients with Alzheimer’s disease; (2) we remain focused on the developmental plan for Phase II study with AV2-73 in Rett syndrome, which we expect to initiate later this year; and (3) we provide an update of the company’s financial performance for the quarter.”

Moreover, James notes, “We would also like to highlight that the SEC did not intend to recommend an enforcement action against the company following the formal investigation by the agency. Overall, we remain focused on the clinical developmental pipeline, and reiterate our Outperform rating.”

The analyst anticipates Anavex will have sufficient cash runway to carry its developmental efforts through F1H17, with a projected cash burn rate of around $0.7 million per month. James concludes, “We expect Anavex to proceed with a Phase II/III study, and remain focused on the upcoming nine-month data readout.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, Christopher James is ranked #3,988 out of 4,120 analysts. James has a 37% success rate and faces a loss of 13.7% in his annual returns. When recommending AVXL, James loses 17.3% in average profits on the stock.

TipRanks analytics exhibit AVXL as a Buy. 100% of analysts polled in the last 3 months by TipRanks rate a Buy on Anavex. The 12- month average price target stands at $12.50, marking a 253% upside from where the stock is currently trading.

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