Anavex Life Sciences Corp (AVXL)

[Gator328]

Correct. Rett syndrome may not have been on the forefront of anyone's mind when first investing in Anavex, but it could be the life preserver that saves the company (and our investments).

A poor Alzheimer's result will probably result in mass selling to the point where Anavex once again becomes undervalued. People will assume that if A273 doesn't work for Alzheimer's that it won't work for Rett or anything else. But I think the bar will be set much lower for Rett patients because it's a rare disease with no treatments that affects kids. As long as Anavex is safe, I see the FDA approving Blarcamesine for Rett syndrome and letting insurance companies decide whether they want to cover treatment costs. A similar thing happened with Sarepta many years ago.

Let's also not forget the $150 million in cash, zero debt, and A-371 to fall back on. Poor results or another trial will be a painful gut punch on 12/1, but not a fatal strike to the company's long-term prospects.