Anavex Life Sciences Corp. (AVXL) Scores Big on Biogen Test

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Anavex Life Sciences Corp. (NASDAQ:AVXL) is up 44% on news that Biogen Inc (NASDAQ:BIIB) would test one of its compounds in a neurological protection model.

AVXL Stock: Anavex Scores Big on Biogen (BIIB) TestAVXL signed onboard with Biogen to test Anavex’s leading drug candidate, Anavex 2-73. A positive result from the study would likely lead to further studies that could boost the therapeutic prospects of the treatment. According to Anavex CEO Christopher Missling:

“Battling demyelinating diseases such as multiple sclerosis requires an understanding of the processes that cause remyelination to fail. Remyelination of demyelinated axons is typically a function of oligodendrocyte precursor cells. These studies will examine the therapeutic role ANAVEX 2-73 may play in permitting remyelination in the brain.”

After today’s gains, AVXL stock is now trading around $4.60, which is still well under the 12-month consensus price target of $12.50. And while the two analysts currently covering Anavex recommend buying, not everyone is sold:

Even after today’s gains, AVXL stock is off 50%-plus since its reverse stock split and subsequent listing on the Nasdaq Composite, at one point trading as high as $14.84.

Today’s news is a step in the right direction for investors hoping to return to Anavex’s halcyon days, and it has definitely spooked the nearly 11% of shorts piled into AVXL stock.

As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/09/avxl-stock-anavex-biogen-biib/.

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