Anavex Life Sciences Corp. (NASDAQ:AVXL) shares are up 8% in Tuesday’s trading session, after the drug maker announced that the International Rett Syndrome Foundation has committed a grant of a minimum of $600K to fund the majority of a phase 2 study of ANAVEX 2-73 in patients with Rett syndrome.
In the wake of the announcement, Maxim analyst Jason McCarthy chimes in on Anavex shares, reiterating a Buy rating, with a $15.00 price target, which implies an upside of 250% from current levels.
McCarthy wrote, “Anavex has demonstrated in multiple preclinical studies that 2-73, which targets “upstream” in the neurological signaling cascade, has potential utility across multiple CNS indications, including Alzheimer’s Disease (AD), Rett Syndrome, Epilepsy, Infantile Spasms, Multiple Sclerosis, Parkinson’s Disease and Fragile X Syndrome. The lead clinical program in AD has demonstrated safety and positive data at 57 weeks. We see funding of a P2 study from the Rett Syndrome Foundation as further validation of 2-73 in CNS diseases and are excited to see 2-73 move towards its second clinical program.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason McCarthy has a yearly average return of -19.4% and a 27% success rate. McCarthy has a -2.1% average return when recommending AVXL, and is ranked #4284 out of 4355 analysts.
As of this writing, the 2 analysts polled by TipRanks rate Anavex Life stock a Buy. With a return potential of 191%, the stock’s consensus target price stands at $12.50.
Anavex Life is a publicly traded biopharmaceutical company dedicated to the development of differentiated therapeutics for the treatment of neurodegenerative and neurodevelopmental diseases including Alzheimer’s disease, other central nervous system (CNS) diseases, pain and various types of cancer.