The biotech sector has remained a target of short sellers in last one month. However, there are some firms that have managed to escape this attack. One of such companies is Anavex Life Sciences Corp (OTCMKTS:AVXL). As the biotech sector struggled, the stock price of Anavex surged almost 50% led by the prospect offered by the company’s lead drug candidate targeting Alzheimer’s disease.
The buzz and increased trading activity in Anavex is absolutely justified as the company studies are focused on finding the factors responsible for Alzheimer’s disease that affects millions globally. Anavex 2-73, if succeeds in trials can become a star in the Alzheimer’s treatment market valued at billions of dollars.
There is major unmet need in this area and it is because of the lack of understanding related to the functioning of brain. In a whitepaper, the FDA mentioned that amyloid beta plaque lessening does not look to have recorded any inroads against Alzheimer’s.
Anavex mode of work to find a treatment offers a great deal of promise to millions of patients suffering from the disease. Misfolded protein is considered as a major cause behind amyloid plaque buildup. While amyloid plaque lessening is important, it is also necessary to fold back misfolded proteins. This will stop them from building more plaque in the body.
Anavex 2-73 drug is an agonist of sigma-1r, which helps a protein obtain its properly folded form. It improves chaperone protein’s mechanism. This drug when given in combination with donapezil is expected to work as a remarkable treatment for Alzheimer’s patients. As of now, donapezil is the standard treatment for AD patients. Anavex 2-73 trials if successful can bring lots of cheer to the biotech market and this is why Anavex comes in the group of the most talked about firms in Alzheimer’s space.
Anavex Life Sciences Corp (OTCMKTS:AVXL) ended the last trading session with a loss of 2.94% but the day low of $1.30 didn’t break the low of the previous week, hence keeping the bullish hopes intact for the moment. The volume of the day at 1.2 million was considerably lower than the daily average of 2.8 million, reflecting the corrective nature of the price action. The long term range is clearly visible on the chart attached and the price can be expected move inside for another week at least. The structure gives hints of a probable rally in the coming days.