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 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:
Sure. $AVXL says, “We will issue meaningless PRs to boost trading volume so we can sell more stock, raise $, thru our Lincoln Park deal.”
— Adam Feuerstein (@adamfeuerstein) September 28, 2016
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.
