Anavex Life Sciences Corp (AVXL)

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Open short positions declined some yesterday for AVXL, based on the IB report of shares available to be borrowed for short sales. I suspect some overleveraged shorts got caught in a squeeze yesterday.

This morning we have another positive PR, this one about our epilepsy preclinicals. We already know that A2-73 for epilepsy will not have to go through a phase 1 trial. Now tie that with the last sentence from yesterday's PR, “The advantage of having Population PK/PD data is of value for the development of ANAVEX 2-73 in Alzheimer’s disease and also for other potential CNS indications.” It looks like A2-73 for epilepsy will be able to skip a phase 2a trial, and jump right to a pivotal phase 2/3 trial.

The need for an effective drug for epilepsy is great, and the market size is huge. I will not be surprised if the price of AVXL rises again today, and squeezes more shorts into forced buys.