Even SAVA (a one-drug, one indication company), with only Phase II AD data in the record book, has a market cap of almost $1.5 billion. That translates to an equivalent AVXL share price of approximately $19/share. Not only has the market ignored AVXL's progress in AD, but it also has ignored AVXL's successful advanced trial progress in Rett's.
I believe AVXL's low capitalization (and SAVA's as well) is at least somewhat explained by the low institutional ownership percentage. I agree that any company that has successfully completed a pivotal trial for AD should have a minimum $5 billion capitalization. The missing ingredient is lack of Street support/backing. Missling's current challenge is convincing the Street that Blarcamsine is on a regulatory path to approval. Hopefully, after meeting with regulators and additional clarity about the path forward for AD (plus success in the Rett's EXCELLENCE trial), AVXL's market capitalization dilemma will take care of itself.
I do think Missling has a credibility problem that is hurting AVXL. His guidance with regarding the timing of expected catalysts has been atrocious. As an important example, the lack of timeliness and clarity regarding PDD leaves investors with nothing but unanswered questions. Finally, investors are confused about the reporting of trial results including endpoints, etc. In short, Missling himself is responsible for some erosion in shareholder confidence. It is disappointing that Missling has not addressed some obvious internal shortcomings. He needs to wake up and get on the ball.
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