This week, we begin with a penny stock alert issued on a biopharmaceutical, development stage company we like (a lot) — Anavex Life Sciences Corp. (AVXL). The company has a lead drug candidate, ANAVEX 2-73, which scored much better Phase I results than many of the high-profile failures in the Alzheimer’s disease space. Considering that the upside potential for AVXL stock and the multi-billion dollar market a working Alzheimer drug is worth is much greater than the downside, we think the stock has legs to grow, even back to pre-clinical trial levels when it was over $4.00.
Have AVXL stock on your radar screen for Monday and the remainder of 2012.
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AVXL Stock Chart – 3 Years
Market Cap: 29.04M
Friday Close: 0.9604, down -0.0396 (-3.96%)
Volume: 6,401
High: 1.01
Low: 0.96
Trades: 7
Average Trade Size: 914
Authorized: 150,000,000
Issued and Outstanding: 30,240,687
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Biotech and pharmaceutical stocks have long been the biggest winners for long penny stock traders. Short-term, well, our alerts issued on Peregrine Pharmaceuticals Inc. (PPHM) and OncoSec Medical (ONCS) both proved that there is money there to be made too with gains from our alerts of 1,281% and 169%. However, Anavex Life Sciences is and has been on the radar screen of some of the bigger pharmaceutical giants prior to their pre-clinical trials of ANAVEX 2-73.
According to 2011 Alzheimer’s Disease Facts and Figures, released by the Alzheimer’s Association, there are nearly 15 million Alzheimer’s and dementia caregivers in the U.S. Back in 2010, the New York Times (see here) ran a rather lengthy piece on the Alzheimer’s epidemic just after the high-profile failure of pharmaceutical giant Eli Lilly & Co. (LLY) with their late-stage Alzheimer’s disease drug, Semagacestat.
A company like Anavex, coming off a successful Phase I program, with efficacy data from the Phase I, IIA portion, and fully Phase II-ready, should command a market cap of over $250 million. Their current market cap of just $29 million proves there is more than 800% upside.
So what’s changed since 2010? How about Anavex entered and completed their ANAVEX 2-73 Human Clinical Trials, Issued and Outstanding shares has increased from 21,062,932 shares as of February 17, 2010 to 30,240,687 as of August 17, 2012, and there is still no cure for the seriously debilitating disease.
AVXL is a Winner, regardless of how it trades on Monday. 10 things we absolutely love about Anavex Life Sciences is:
- AVXL is priced under $1.00 —just a fraction of its true per share value
- The leading drug candidate of AVXL, ANAVEX 2-73, has declared successful completion of a Phase 1
single ascending trial of ANAVEX 2-73 - AVXL released new data on ANAVEX 2-73 on October 17 (see here)
- AVXL’s Ongoing Drug Developments target not only Alzheimer’s disease, but also Prostate cancer and
Pancreatic cancer (see here) - AVXL has started scale-up manufacturing of another drug – ANAVEX 1-41 that targets a range of
crucial CNS ailments - AVXL‘s technicals look fabulous… even small news could cause the stock price to surge
- AVXL’s shares are trading in the oversold zone with a 400% potential upside
- Healthcare has proven to be one of the sector’s that never goes dark — it’s never worth zero
- The aging population in Western countries is forcing pharmaceutical companies to find a cure to
Alzhiemer’s disease - AVXL is one of the few penny stocks with significant tangible assets
AVXL is a HUGE potential buyout target, especially at its current level. Which pharmaceutical giant wouldn’t throw $100 million plus at a Company that can take the lead in an industry worth over $5 billion? Just a year ago, Roche agreed to buyout Anadys Pharmaceuticals (ANDS) for $3.65 a share after interim antiviral response and safety data from an ongoing Phase IIb study of their hepatitis C trials.
About AVXL Stock
Anavex Life Sciences Corp. is a pharmaceutical company engaged in the development of novel drugs. The Company’s portfolio involves novel compounds (ligands) directed to sigma receptors in preclinical and clinical stages of development that target neurodegenerative diseases and cancer. The Company’s lead drug candidate, ANAVEX 2-73, targeting Alzheimer’s disease, entered Human Clinical Trials (HCT) in the first quarter of fiscal 2011.
Click here to view the SEC filings for AVXL.
Bottom Line: Don’t forget to have AVXL on your list of penny stocks to watch Monday and for the remainder of 2012. AVXL stock is tremendously undervalued at its current level and a superior candidate for a possible buyout offer if not a JVA with a large pharmaceutical giant to flip the bill for their Phase II study. Either way, it’s all good from here.
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Notice of Compensation
Please be advised that this website sometimes receives compensation to perform promotional and advertising services for companies mentioned on our website, social media platforms, & our emails by third parties. This website has received ten thousand dollars compensation for investor communication services from a third party, Winning Media LLC, for coverage on AVXL.
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