Anavex Life Sciences Corp (AVXL)

[Investor2014]

It is not a straightforward question to answer and as a lawyer might say, it depends!

Biotech Cos. Face Pressure To Disclose

There are several similar articles, but I might summarise those and the SEC rules discussed as: The assertion or omission of some information known to a public company is material if a reasonable investor would take action one way or the other on the disclosure of such information.

So if Anavex have knowledge of the AVATAR trial topline results already, but are holding back knowing the market is likely to react one way or the other then it is material and must be disclosed.

There is no rule spelling out that it is ok to withhold at leisure positive information, but that negative information must be disclosed at the time it is first known the the company. Both positive and negative news likely to alter investor behavior when disclosed is material.


Consequently my take of course is that Anavex are not yet in possession of conclusive topline results of the AVATAR trial.