Anavex Announces Positive Phase 2A Data On Alzheimer's Treatment, Shares Rally

Shares of Anavex Life Sciences Corp. (NASDAQ: AVXL) surged more than 20 percent in Tuesday’s pre-market after it announced positive data from its Phase 2a study in mild-to-moderate Alzheimer’s patients.

“At 41 weeks, Alzheimer’s patients taking a daily oral dose of ANAVEX 2-73 in the exploratory, not yet dose optimized Phase 2a clinical trial, showed a stabilization of cognitive and functional measures,” the company said in a press release.

Significant Data

According to Anavex, the data assumes significance, as the current treatments are only able to temporarily slow the worsening of dementia symptoms and not stop the disease from progressing.

During the study, the drug was well tolerated, and no adverse events were reported. Anavex’ Alzheimer's treatment targets cellular homeostasis, which involves maintaining a balance of several factors that make a cell healthy.

Cautionary Optimism

"We are encouraged, however, we should be reminded that these endpoints are exploratory and need to be confirmed in a larger study, for which planning is underway," said Christopher Missling, president and CEO of Anavex.

Shares of Anavex closed Monday’s trading at $3.29. In the pre-market hours Tuesday, the stock climbed 20 percent to $3.96.