H.C. Wainwright Reiterates Buy Rating on Anavex Life Sciences (AVXL)

H.C. Wainwright analyst Raghuram Selvaraju reiterated a Buy rating and $40.00 price target on Anavex Life Sciences (NASDAQ: AVXL).

The analyst commented: "Key secondary asset yields favorable initial clinical data. Yesterday, Anavex reported encouraging preliminary electroencephalography (EEG) biomarker results from the Part A of the ongoing placebo-controlled Phase 2 clinical study of ANAVEX3-71 for the treatment of schizophrenia. Part A of the Phase 2 study was a multiple ascending dose study in 16 participants treated with either oral placebo, oral ANAVEX3-71 90mg daily, or oral ANAVEX3-71 180mg daily for 10 days. Preliminary results demonstrated a dose-dependent effect of ANAVEX3-71 on two key EEG biomarkers in patients with schizophrenia. Treatment with ANAVEX3-71 vs. placebo resulted in improvements in 40 Hz Auditory Steady-State Response (ASSR) Inter Trial Coherence (ITC) and Resting State Alpha Power. These effects were greatest in the higher dose group, showing a dose-dependent pharmacodynamic (PD) effect. These results provide evidence of CNS target engagement and potential therapeutic effects of ANAVEX3-71 in schizophrenia. The observed changes reversed known EEG and ERP biomarker abnormalities associated with schizophrenia. These EEG biomarkers correlate with positive, negative, and cognitive symptoms of the condition. Schizophrenics typically have reduced neural synchrony as measured by 40 Hz ASSR ITC. Improvements in 40 Hz ASSR ITC indicate enhanced neural synchronization, potentially leading to reduced auditory hallucinations (positive symptom), improved executive function, and working memory (cognitive symptoms). Schizophrenics also typically have decreased resting state alpha power correlating with sensory and behavioral problems. Increases in Resting State Alpha Power reflect improvements in thalamocortical circuits and sensory gating, potentially resulting in reduced irritability and anxiety (negative symptoms). We reiterate our Buy rating and 12-month target of $40. Our valuation is based on contributions from blarcamesine, Anavex's lead candidate, and does not attribute value to ANAVEX3-71. Continued ANAVEX3-71 success could drive upside to our forecasts. "

For an analyst ratings summary and ratings history on Anavex Life Sciences click here. For more ratings news on Anavex Life Sciences click here.

Shares of Anavex Life Sciences closed at $5.51 yesterday.

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