Anavex Life Sciences Corp (OTCMKTS:AVXL) Becomes Volatile

The share price of Anavex Life Sciences Corp (OTCMKTS:AVXL) have turned extremely volatile in past one month. The stock is sitting on a see-saw of gains and losses, and on Tuesday it closed at $1.35. The volatility is very much on expected lines, considering the fact that Anavex is a small cap biotech firm trading on the OTC platform. Therefore, it is best for long-term investors to ignore the intra-day moves and purely focus on fundamentals, which are extremely robust for a company, its size.

The highlights

Anavex Life Sciences appears to be one of the most interesting and potential Alzheimer’s disease drug firm with the lowest valuation. The strong potential of its lead product candidate, named as ‘Anavex 2-73’, was validated when it announced initial data from an underway Phase IIa trial last month. The results showed early proof of improving condition in AD patients.

The science

Anavex managed to make a differentiating position from its peers due to the science used in the trial process. It has tried to locate the receptors leading to protein misfolding, which is the main culprit behind AD. As of now, none of standard care treatments for AD treat the root cause, and it is why there is a dire need of an effective treatment in the field of Alzheimer’s. Anavex investigational drug can work as an agonist for the sigma-1R receptor. What is more thrilling is the fact that the same concept can show remarkable results in Huntington and Parkinson’s diseases.

The grant

Michael J. Fox Foundation awarded a grant to Anavex Life Sciences so as to enhance Anavex 2-73 for Parkinson’s disease treatment. It will support the preclinical study targeting Parkinson’s disease in a animal model.

AVXL

Anavex Life Sciences Corp (OTCMKTS:AVXL) enjoyed a pause day yesterday after the excellent rally seen on the last day of the previous week. The stock started this week with an almost unchanged day, with a minor loss of 0.74% only. The volume of the day at 1.8 million was much lower than the daily average of 3.7 million, reflecting the lack of interest in the stock frequently seen in the corrective stages or consolidation phases. The larger perspective, as clearly seen from the chart attached, shows the stock to be undergoing a larger sideways phase, expected to culminate in a breakout in the coming days.

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