Anavex Life Sciences Corp (AVXL)

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The failure of yet another Alzheimer’s drug, Neurotrope’s bryostatin-1, might prompt some to find this in favor of Anavex Life Sciences, inasmuch as Anavex now has the only human trials data that solidly show authentic positive treatment results (to be more firmly established in an ensuing big Phase 3 trial). Neurotrope will not be an Anavex competitor.

Nonetheless, the failure of Neurotrope’s drug will do nothing for Anavex. The investment advisor community will, as before, site this as proof that no drug company, big or small, new or old, can offer any useful Alzheimer’s treatment drug; that investing in any company — such as Anavex — is a demonstrated fool’s game. A multitude of very expensive trials have failed, and so will Anavex’s, it will be contended.

The unique neuron biochemistry of Anavex 2-73 is beyond the comprehension of most advisors. They lump all Alzheimer’s drugs in the same category — requisite failures.

As in the past, I’ll suggest that AVXL share prices will trade sideways, in a narrow, static price range until new, hard clinical data are released some time in the distant future. Case in point is the market’s reaction to today’s hiring of a former FDA official. The implications of that are very positive, but the market discounts it.

AVXL is only for the patient — with stunning future rewards.