Anavex Life Sciences Corp (NASDAQ:AVXL) Defies The Bears

We doubt that there's a company more hated than Anavex Life Sciences Corp (NASDAQ:AVXL) trading on the NASDAQ. Countless negative articles, tweets, and irrational pessimism has plagued the company since the beginning. Granted the company did start as a reverse merger and did not go the traditional IPO route, but the company has been committed to Alzheimer's research and the science behind the company is real. It seems more are rooting for the company to fail than succeed and we find this astonishing.However, in spite of all of this, shares of AVXL have been making higher lows and higher highs since February. Shares have been steadily climbing higher and are one step closer to breaking out on some major news. More are coming to realize that ANAVEX 2-73 is the most promising drug being developed right now for Alzheimer’s. ANAVEX 2-73 is based on oxidation and nitration causing Alzheimer’s. Other drug companies have instead focused on the cause being amyloid. They have misdiagnosed the cause while we believe Anavex has the correct approach.Last month, Anavex announced that it received the approval from the Ethics Committee in Australia to extend the ongoing Phase 2a Alzheimer’s trial, which had been requested by patients and their caregivers. The trial extension is designed to allow participants who complete 52 weeks in PART B to roll-over into a new trial and continue taking ANAVEX 2-73 for an additional 104 weeks, providing an opportunity to gather extended safety and efficacy data. The trial is independent of the Company’s planned larger Phase 2/3 double-blinded, placebo-controlled study of ANAVEX 2-73 in Alzheimer’s disease.Recent findings have shown that despite the relative small sample size of this proof-of-concept randomized open-label study, dose-response analysis seems to indicate that in 32 patients treated with doses of ANAVEX 2-73 ranging from 3 mg (IV) to 50 mg (oral) per day, both the MMSE-Δ and the ERP/P300 data showed a positive slope with confidence intervals not including the zero-value, consistent with a dose dependent improvement in MMSE scores over five weeks. CEO Dr Christopher Missling said:

“While we are waiting for longitudinal effect data of ANAVEX 2-73 over an extended period of time, the positive dose-response in PART A is an encouraging step and also consistent with the fast mode of action of the sigma-1 receptor.”

Earlier this month, Anavex received Orphan Drug Designation from the FDA for ANAVEX 3-71 in the treatment of Frontotemporal dementia. This is a clinical syndrome associated with progressive shrinking of the frontal and temporal anterior lobes of the brain. It causes a decline in language and/or behavioral changes, which include inappropriate social conduct, lack of empathy, blunted emotions or agitation, neglect of personal hygiene and a decrease in energy and motivation. To date, no treatment has been shown to slow its progression and the prognosis for people with FTD is poor. FTD afflicts an estimated 50,000 to 60,000 patients in the United States and represents an estimated 10 to 20 percent of all dementia cases.Now on this, we agree with the bears that this is really no big deal. Orphan drug designation is just the starting point in the regulatory process. All AVXL had to do was fill out a form and answer eight questions. But for us, our focus is not on ANAVEX 3-71 since there are no clinical trials ongoing for 3-71.Currently trading with a market cap of $198 million, the science behind AVXL tells me there’s a great chance of some major developments coming from AVXL this year. If the company delivers and proves its treatment for Alzheimer’s works, it will be the bears crying as AVXL breaks out and heads higher. We will be updating Insider Financial as soon as we know more. For continuing coverage on AVXL, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in AVXL and have not been compensated for this article.