Replies to post #81659 on Anavex Life Sciences Corp (AVXL)

[XenaLives]

Scangos - another Greek in the mix...

http://www.xconomy.com/boston/2011/08/31/george-scangos-the-boy-from-working-class-boston-on-his-road-back-to-lead-biogen-idec/

My experience of Greek-Americans is they are very hard working, proud of their heritage and a bit clannish, but not chauvinistic at all.

Ooopah!

[Whiskey/Sausage]

drv17, I agree (but would expand the 'merger' to also include 'partnership') as legally they have two different meanings, but on the MB usually imply the same thing.

Partnerships take time. More than just a few weeks/months. Multiple years even. That's what a lot of retail investors are failing to see. They want to buy their car from the dealership and drive it off the lot time now - never taking true heed to how long it took to design, test, manufacture, market, and ship the car. Agreed, it's a great car and looks good in your driveway, but it took cumulative years and thousands of hours of work to get that car to your driveway.

We are in the design/test phase. It'll be a year or two more before Anavex is running on all cylinders. Sure it'll be exciting along the way (think: concept cars/car shows) but it's going to be another solid minute (2-10years) before you will see the cars on the streets (and only then will we see these extreme but attainable $10b-$50b MC valuations).

SO yes, partnership for sure because financing isn't a concern and both Biogen and Lilly knew their drugs were a bust a long time ago, and Biogen is looking for a solution to their stock price (notice that they are under $300/share right now?) that is a huge mental threshold. If you thought us retail ANAVEX investors are grumpy, just think of the grumpiness going on at Biogen.

[drv17]

I intended to re-post this.
Credit to Ven who originally posted the statement of Biogen's need.


drv17 Member Level Tuesday, 11/29/16 09:47:59 PM
Re: None
Post #
81313
of 81661 Go
"Biogen needs AVXL more than AVXL needs Biogen"
I forgot which poster stated this but here is a portion of an article written by Todd Campbell in The Motley Fool.

Despite outperforming expectations, year-over-year top-line growth remained tepid compared to the company's historical rates, and a decision by management to shelve development of a next-generation multiple sclerosis (MS) therapy marked a second failure of a key pipeline candidate this year.
In June, the company reported disappointing mid-stage results for anti-lingo, a therapy it hoped could restore the damage to a nerve's myelin sheath that causes MS symptoms. Then in its conference call with investors in October, Biogen announced it's abandoning MT-1303, a S1P modulator that Biogen once hoped could insulate itself against fast-approaching competition from Celgene and Novartis , two companies developing their own S1P drugs. After reviewing MT-1303's market potential, Biogen is walking away from MT-1303 only a year after securing the rights to it from Mitsubishi Tanabe .

Michael D. Ehlers, executive VP of research and development, said, "As we looked at how the landscape was evolving, both in terms of the regulatory competitive landscape, changing features there, and the corresponding fit with our strategic priorities about where we could best allocate resources based on our own expertise and competency -- we just determined that it wasn't as good of a fit as other things which we could allocate our resources toward."

Now what
Biogen is the dominant player in MS treatment, and that's not going to change overnight. However, new drugs are on the horizon that could eat away at Biogen's market share over the next few years, so investors are right to be concerned about Biogen's R&D stumbles.

Management isn't giving up on MS, but it is shifting a lot of R&D focus to other indications, including Alzheimer's disease. If that R&D pays off, then management could tap into a massive and underserved market. However, this research is still ongoing, and it could be a while before we learn how effective these "moonshots" are at curbing disease.

My emphasis- drv17