Janney Montgomery Scott launched coverage of Anavex Life Science (NASDAQ:AVXL) with a “buy” rating and fair value estimate of $10. The stock closed at $3.14 on June 17.
Anavex is developing Sigma-1 receptor agonists for the treatment of neurodegenerative and neurodevelopmental disorders. Its lead product candidate, ANAVEX 2-73, is in four clinical studies for three indications including, Alzheimer’s disease, Parkinson’s disease dementia and Rett syndrome.
“With a unique mechanism of action that modulates multiple cellular pathways shared by a variety of neurological diseases, ANAVEX 2-73 could represent a differentiated approach in a space that has seen repeated failures in clinical development,” writes analyst Yun Zhong.
“We view ANAVEX 2-73 as not only a product candidate, but also a portfolio that could allow Anavex to have multiple shots on a goal,” he added. “And positive data from the ongoing studies should unlock strong potential in Anavex shares.”
