Anavex Life Sciences Corp (AVXL)

[LBSR TO DA MOON]

Anavex defended at Cantor on prospects for rare disease therapy
Nov. 29, 2022 1:32 PM ETAnavex Life Sciences Corp. (AVXL)By: Dulan Lokuwithana, SA News Editor2 Comments

Following a selloff in the previous session, Anavex Life Sciences (NASDAQ:AVXL) traded flat on Tuesday as Cantor Fitzgerald reaffirmed its Overweight recommendation citing the biotech’s prospects in the rare disease Rett syndrome.

The analyst Charles Duncan attributed Monday’s decline to a delayed timeline the company indicated for a readout from its pediatric Phase 2/3 EXCELLENCE study for Rett syndrome candidate ANAVEX2-73 (blarcamesine) with its fiscal 2022 results.

Duncan notes that the company expects a topline readout from the EXCELLENCE study in H1 2023, indicating a delay compared to his previous estimates for a Q1 2023 readout.

“Therefore, we delayed our projected launch year of ‘2-73 in RS to 2026 from 2025, as we believe an additional pivotal trial may need to be conducted,” the analyst wrote, yet maintaining the $16 per share target on the stock.

Citing expert feedback and positive readthroughs from the Phase 3 AVATAR trial for the candidate in adults with Rett syndrome, Duncan highlights the potential of ANAVEX2-73 in addressing unmet medical in children affected by the neurodevelopmental disorder.

However, ahead of an upcoming readout on Dec. 01, the analyst remains cautious about predicting blarcamesine’s performance in a Phase 2b/3 trial for Alzheimer’s disease.

Read more on topline data from the AVATAR trial, which met primary and secondary efficacy endpoints for ANAVEX2-73 in adults with Rett syndrome.