Analysts are weighing in on the clinical-stage biopharmaceutical company Anavex Life Sciences Corp. (NASDAQ:AVXL) and Israeli pharma company Oramed Pharmaceuticals, Inc. (NASDAQ:ORMP), as shares of both companies are rising sharply today. The analysts reflect on Anavex’s publication of additional data for ANAVEX 3-71 and Oramed’s licensing and investment agreements with Hefei Tianhui Incubator.
Anavex Life Sciences Corp.
Anavex Life Sciences shares shot up 26% to $7.56, following publication of further data for ANAVEX 3-71, the company’s pre-clinical Alzheimer’s drug candidate, in the peer-reviewed scientific journal Neurodegenerative Diseases. The ANAVEX 3-71 data provides evidence for a positive, more upstream effect on reducing synaptic loss, amyloid and tau pathologies, and neuroinflammation, which is potentially beneficial for the treatment of Alzheimer’s and other neurological diseases.
In a research note issued toady, Maxim analyst Jason Kolbert wrote, “Patient enrollment for the Phase IIa clinical trial of ANAVEX 2-73 has been completed ahead of schedule. With the Phase IIa trial now fully enrolled, Anavex presented full PART A data and preliminary PART B data from the ongoing Phase IIa clinical at CTAD. The late-breaking oral session was presented by the trial’s Principal Investigator, Stephen Macfarlane, FRANZCP, Director and Associate Professor, Aged Psychiatry at Caulfield Hospital in Melbourne, Australia.”
Kolbert reiterated a Buy rating on AVXL, with a price target of $15, which represents a potential upside of 96% from where the stock is currently trading.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kolbert has a total average return of -10.7%, a 32.5% success rate, and is ranked #3637 out of 3649 analysts.
Oramed Pharmaceuticals, Inc.
Oramed shares are on the rise following the news that the company has signed definitive licensing and investment agreements valued at up to $50,000,000 with Hefei Tianhui Incubator of Technologies Co., Ltd. for exclusive rights to market Oramed’s oral insulin capsule, ORMD-0801, in China, Hong Kong and Macau.
FBR Capital analyst Christopher James commented, “We believe the deal, which includes an execution payment of $3 million, potential milestone payments of $35 million, and a $12 million investment in equity, further validates the potential of ORMD-0801 for the treatment of diabetes type 1 and type 2 (T1D and T2D). Moreover, these additional funds help to extend the cash runway through 2017, according to our model.”
James continued, “These royalties could provide significant revenues for Oramed, since China has the largest number of diabetes patients of any nation in the world. The Lancet estimates that over 1 in 10 people and greater than 100 million adults in China suffer from diabetes.”
The analyst maintained at Outperform rating on shares of Oramed, with a price target of $15, which implies an upside of 63% from current levels.
According to TipRanks.com, James has a total average return of -14.0% and a 37.9% success rate. James has a 9.3% average return when recommending ORMP, and is ranked #3484 out of 3649 analysts.
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