By The Life Science Report
Source: Streetwise Reports 12/10/2019
How this company’s Alzheimer’s therapeutic compares to an advanced-stage competitor is outlined in a Dawson James Securities note.
In a Dec. 2 research note, Dawson James Securities analyst Jason Kolbert purported that Anavex Life Sciences Corp.’s (AVXL:NASDAQ) ANAVEX2-73 is “a better choice” than Biogen’s beta amyloid Alzheimer’s drug aducanumab.
Kolbert chose this time to highlight Anavex as a recent Barron’s report “highlighted a former colleague’s note discussing the likelihood that the firm’s beta amyloid Alzheimer’s drug aducanumab is not likely to get approved” by the FDA. Kolbert opined that it is surprising Biogen is even trying for approval as aducanumab had “mixed clinical results.”
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“Our point here is not to argue the validity of Biogen’s data but to point out, by comparison, how compelling the Anavex data looks to us,” on all studies, from animal to recent clinical ones, he noted. Anavex is currently in a Phase 2b/3 trial, which could be done by year-end 2020. If so, commercialization could ensue by the end of 2022, he stated.
Kolbert highlighted that ANAVEX2-73 has a different mechanism of action in Alzheimer’s disease than aducanumab. Rather than focus on beta amyloid, it targets and activates the Sigma-1 receptor. “It is believed that Sigma 1 can help to protect a cell from the accumulation of misfolded proteins, acting to chaperone them out of the cell. As a result, cell metabolism (oxidative stress and mitochondrial dysfunction) are kept in balance.” Accordingly, it could have “an impact across a wide range of neurodegenerative diseases from Alzheimer’s to Parkinson’s and niche orphan diseases such as Rett syndrome, which may represent a ‘fast path’ to establish proof of concept, around Sigma-1 agonism,” Kolbert commented.
Dawson James has a Buy rating and a $16 per share target price on Anavex. The stock is currently trading at around $2.38 per share.
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Disclosures for Dawson James Securities, Anavex Life Sciences Corp., December 2, 2019
The Firm does not make a market in the securities of the subject company(s). The Firm has NOT engaged in investment banking
relationships with AVXL in the prior twelve months, as a manager or co-manager of a public offering and has NOT received compensation resulting from those relationships. The Firm may seek compensation for investment banking services in the future from the subject company(s). The Firm has not received any other compensation from the subject company(s) in the last 12 months for services unrelated to managing or co-managing of a public offering.
Neither the research analyst(s) whose name appears on this report nor any member of his (their) household is an officer, director or advisory board member of these companies. The Firm and/or its directors and employees may own securities of the company(s) in this report and may increase or decrease holdings in the future. As of November 30, 2019, the Firm as a whole did not beneficially own 1% or more of any class of common equity securities of the subject company(s) of this report. The Firm, its officers, directors, analysts or employees may affect transactions in and have long or short positions in the securities (or options or warrants related to those securities) of the company(s) subject to this report. The Firm may affect transactions as principal or agent in those securities.
Analysts receive no direct compensation in connection with the Firm’s investment banking business. All Firm employees, including the analyst(s) responsible for preparing this report, may be eligible to receive non-product or service specific monetary bonus compensation that is based upon various factors, including total revenues of the Firm and its affiliates as well as a portion of the proceeds from a broad pool of investment vehicles consisting of components of the compensation generated by investment banking activities, including but not limited to shares of stock and/or warrants, which may or may not include the securities referenced in this report.
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( Companies Mentioned: AVXL:NASDAQ,