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Written by
Joel Najarian
Published on
October 12, 2015
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ANAVEX LIFE SCIENCES (OTCMKTS:AVXLD) has turned into the biggest and baddest runner on the entire bb's running from $0.15 in March of this year well into multi-dollar land pre-split. Last week AVXLD affected a 1 for 4 reverse stock split which temporarily added an extra D to the ticker.

AVXLD affected the reverse in order to meet the conditions of a NASDAQ up-listing; according to CEO Christopher U. Missling, PhD “It is our belief that up-listing to a major exchange will allow a broader base of worldwide institutions, funds and retail investors to participate in our future success. This reverse stock split will help us meet the conditions to finalize our application for up-listing to NASDAQ.”

ANAVEX LIFE SCIENCES (OTCMKTS:AVXLD) bills itself as a publicly traded biopharmaceutical company dedicated to the development of novel drug candidates to treat central nervous system (CNS) diseases such as Alzheimer’s disease, pain and various types of cancer. According to earlier reports ”is sitting on drugs in development that could potentially turn the multi-billion dollar Alzheimer’s market upside down.”

Everyone seems to think that RS is bad and usually results in lower PPS as the result of panic selling etc., but if we really examine the issue we come to an entirely different conclusion. Yes in almost all cases when a non-revenue, sub penny co with a history of dilution does another RS it almost always ends in more downside. And this is the only logical outcome; if management is doing a RS so they can continue to further dilute shareholders why would any shareholder not sell.

At the other end of the spectrum when an established Company such as AVXL that already does a RS in order to up-list to a higher exchange it almost always results in significant moves to the upside; let’s look at some recent established Company RS examples; CTSO did a 25 for 1 RS on December 1, 2014 the stock opened after the RS at just over $4 a share and quickly ran to over $12 in 3 weeks.

Another established Company RS recently was SIAF which did a 9.9 for 1 RS on December 16, 2014 the stock opened after the RS at just over $6 a share and was trading over $9 by the next day. AVXLD is the latest winner we can add to this list.

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It is easy to see why Anavex has made such a massive move in recent months; the Company is sitting on drugs in development that could potentially turn the Alzheimer’s market upside down and we are talking about a market worth billions. Unlike existing treatments currently on the market Anavex 2-73 works as an agonist for the sig-1R receptor that is behind protein misfolding.Anavex lead drug candidates, Anavex 2-73 and Anavex PLUS, a combination of Anavex 2-73 and donepezil (Aricept®) are currently being evaluated in a Phase 2a clinical trial for Alzheimer’s disease.In earlier preclinical studies, Anavex 2-73 showed potential to halt and/or reverse Alzheimer’s disease. Additionally, positive preclinical data reveals the potential for Anavex 2-73 as a platform drug to treat additional CNS disorders, including epilepsy.On October 7 AVXLD announced the presentation of full PART A data and preliminary PART B data from the ongoing Phase 2a clinical trial of ANAVEX 2-73 at the upcoming Clinical Trials on Alzheimer’s Disease (CTAD) conference in Barcelona, Spain from November 5-7, 2015. The late-breaking oral session will be presented by the trial’s Principal Investigator, Stephen Macfarlane, FRANZCP, Director and Associate Professor, Aged Psychiatry at Caulfield Hospital in Melbourne, Australia.The primary objective of the trial is to evaluate the maximum tolerated dose of ANAVEX 2-73. Secondary trial objectives include exploratory cognitive efficacy using mini-mental state examination score (MMSE), dose response, bioavailability, Cogstate and electroencephalographic (EEG) activity, including event-related potentials (EEG/ERP), as well as the relationship of ANAVEX 2-73 as an add-on therapy to donepezil (Aricept(R)).Currently exploding up the charts since the 1 for 4 reverse stock split affected in order to meet the conditions of a NASDAQ up-listing AVXLD has transformed in recent months to become the top traded stock and fastest moving runner on the entire exchange. It is easy to get excited about AVXLD; the Company has drugs in development that could transform the massive billion dollar Alzheimer’s market.Make sure that you sign up for our newsletters below for updates on AVXLD. We will have something soon.

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