Anavex Life Sciences Corp (OTCMKTS:AVXL) disclosed encouraging cognitive data from its initial Phase 2a clinical study of ANAVEX 2-73 at the Alzheimer’s conference. The news had a positive impact on company’s shares, which closed with gains of more than 27%. The stock extended its gains in yesterday’s session as it jumped over 2% to close the trading session at $0.650.
The real potential drug of Anavex is Anavex Plus, which combines donepezil and Anavex 2-73. However, the company is facing major problems to initiate a Phase II a study for Anavex Plus, following a patent war with the mentioned co-inventor of the lead drug combo. If Anavex succeeds in the patent case and is able to advance Anavex Plus, then the stock can see a potential upside from here, given the company enters into the commercialization stage.
Cognitive EEG/ERP P300 findings, a real-time physiological estimate of cognitive practices with verified sensitivity to Alzheimer’s, is being highlighted for the first 12 of thirty-two mild-to-moderate subjects suffering with Alzheimer’s in the ongoing Phase II a Clinical trials of lead drug ANAVEX 2-73 at AAIC. The drug was founded to have cognitive effects in 83% of total enrolled patients in Part ‘A’ trial.
The subjects were kept on a 36 day dosing treatment to evaluate bioavailability. After the completion of defined dosing plan, it was found that the amplitude of the cognitive EEG/ERP P300 surged 38% from baseline. It is almost four times higher than current standard of care, ‘Aricept®.’
The encouraging data
The CEO Christopher U. Missling, PhD stated that they are cautiously positive given the initial cognitive data and promising feedback. They look forward to the final data of ANAVEX 2-73 Phase II a study. The company reported that so far they have registered 66% of the patients and expects enrollment to complete in coming period.
Anavex Life Sciences Corp (OTCMKTS:AVXL) ended the last trading session with a gain of 2.20% but the structure of the daily candle was not very encouraging for the bulls. The final closing of the day at $0.65 was almost the same with the opening price of $0.6560 and it took place almost at the midpoint of the day’s range, creating a Doji. A Doji generally suggests indecision and frequently preempts a top too, if it is created near any major resistance. The bulls would be wary of the upper boundary of the channel containing the short term rise of the stock.