Anavex Life Sciences Corp (AVXL)

[bb8675309]

TipRanks
3 “Strong Buy” Stocks With Robust Upside Ahead

Anavex Life Sciences (AVXL)

With the last stock we’re looking at here, we’re shifting our focus to the biotech industry. Anavex is a clinical-stage biopharmaceutical firm, developing treatments for ‘severe and devastating’ neurological diseases. The company’s lead drug candidate, Anavex2-73 (blarcamesine), is currently under investigation as a treatment for Rett syndrome, which has no available therapies, along with Alzheimer’s and Parkinson’s.

Anavex2-73 has several Phase 2/3 clinical trials underway simultaneously. The AVATAR and EXCELLENCE studies are evaluating the drug as a treatment for Rett syndrome, and a review of early safety results by the independent Data Safety Monitoring Board (DSMB) recommended that the studies continue without modification.

In regard to its Alzheimer’s studies, Anavex2-73 has shown to bring about an 8% improvement in activities of daily living by test patients.

While the late-stage clinical studies are making some waves for Anavex, the company has several additional research tracks, at earlier phases. Anavex2-73 is in preclinical and Phase 1 research for several additional conditions, including Fragile X syndrome. And the company has three additional drug candidates in preclinical research from conditions ranging from dementia to depression to stroke.

Soumit Roy, 5-star analyst with Jones Trading, takes an optimistic view of Anavex, based on the company’s early clinical results.

“Anavex has shown remarkable cognitive benefits at the longest duration observed amongst peers... We expect to see positive 12-month data from a randomized Phase 2b/3 trial in approx. 450 patients in mid-2022 and could see earlier data in 1Q22. Early data in Parkinson’s disease was encouraging— ‘2-73 improved core cognitive functions and significantly improved episodic memory in PD dementia patients,” Roy noted.

The analyst summed up, "We believe Anavex’s implied valuation barely includes opportunities in RTT and recent appreciation in stock price mostly came from broader interest in the Alzheimer’s disease space. With potentially two pivotal data in Rett in 3Q21, randomized data in Alzheimer’s disease in 1H22 & mid-2022, and pivotal trial initiation in Parkinson’s disease in 2H21, we are initiating coverage on Anavex’s stocks with a BUY rating..."

Along with that Buy rating, Roy sets a $35 price target that indicates ~74% share growth for the next year. (To watch Roy’s track record, click here)

Once again, we’re looking at a stock with a unanimous Strong Buy consensus rating, based on 3 recent positive reviews. AVXL shares have an average price target of $26.50, implying a 30% upside from the current share

https://finance.yahoo.com/news/3-strong-buy-stocks-robust-162449912.html