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Anavex Life Sciences (AVXL)
NASDAQ:AVXL
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Anavex Life Sciences
(NASDAQ:AVXL)
48Neutral
Positive Factors
European Market Opportunity
The European market opportunity for blarcamesine could be highly lucrative, with an estimated 7 million people in Europe with Alzheimer's disease.
Safety Profile
Blarcamesine's safety profile indicates the possibility of no requirement for routine MRI-based monitoring, a necessity for all existing approved anti-AD medications.
Negative Factors
Regulatory Approval Uncertainty
Uncertainty around approval in the U.S. and lack of any partnership news in ex-US are key issues.
Anavex Life Sciences (AVXL) vs. S&P 500 (SPY)
Market Cap
$763.88M
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)1.74
Revenue GrowthN/A
EPS Growth-3.08%
CountryUS
Employees42
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.55
Shares Outstanding85,064,200
10 Day Avg. Volume1,070,873
30 Day Avg. Volume1,038,551
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-15.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.50Price Target Upside216.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Anavex Life Sciences Business Overview & Revenue Model
Company DescriptionAnavex Life Sciences Corp. is a clinical stage biopharmaceutical company, which engages in the development of different therapeutics for the treatment of neurodegenerative and neurodevelopmental diseases. Its lead compound, ANAVEX2-73, is being developed to treat Alzheimer's and Parkinson's disease and central nervous system diseases, including Rett syndrome. The company was founded by Harvey Lalach and Athanasios Skarpelos on January 23, 2004 and is headquartered in New York, NY.
How the Company Makes MoneyAnavex Life Sciences primarily generates revenue through the development and potential commercialization of its drug candidates. As a clinical-stage company, its primary revenue streams include research grants, collaborations, and partnerships with larger pharmaceutical companies. These partnerships can involve milestone payments and royalties based on the successful development and commercialization of its drug candidates. Additionally, Anavex may receive funding from governmental and non-governmental organizations supporting CNS research. The company is focused on advancing its clinical trials and bringing its products to market, which would eventually lead to revenue from product sales.
Anavex Life Sciences Financial Statement Overview
Summary
Anavex Life Sciences is in the development stage, characterized by no revenue, consistent net losses, and a reliance on equity financing. While the balance sheet is strong with no debt, the income statement and cash flow statement highlight the challenges of sustaining operations without revenue. The financial health of the company hinges on its ability to advance its biotech projects towards revenue generation.Income Statement
Anavex Life Sciences has reported zero revenue over the analyzed periods, which is typical for early-stage biotechnology companies that are in the R&D phase. The company experiences consistent net losses, with a TTM net income of -$46.49 million. This indicates a high level of ongoing investment in research without current revenue generation, which is a significant risk factor for financial sustainability.25
Negative
Balance Sheet
The company's balance sheet shows a strong equity position with no debt, resulting in a debt-to-equity ratio of 0. This is a positive indicator of financial stability. However, the return on equity is negative due to ongoing net losses. The equity ratio remains solid, indicating that the company is predominantly financed by equity rather than liabilities.70
Positive
Cash Flow
Anavex Life Sciences demonstrates a negative operating cash flow, reflecting its pre-revenue stage. However, the company has maintained a healthy cash position and has managed to secure financing without taking on debt. The absence of revenue and free cash flow growth underscores the company's reliance on external financing for its operations.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | EBIT |
| -55.18M | 0.00 | -55.76M | -54.40M | -41.92M | -30.76M | EBITDA |
| -25.32M | 0.00 | -55.76M | -50.94M | 0.00 | 0.00 | Net Income Common Stockholders |
| -46.49M | -43.00M | -47.51M | -47.98M | -37.91M | -26.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 120.78M | 132.19M | 151.02M | 149.16M | 152.11M | 29.25M | Total Assets |
| 124.04M | 135.57M | 154.39M | 152.70M | 161.62M | 34.54M | Total Debt |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Debt |
| -120.78M | -132.19M | -151.02M | -149.16M | -152.11M | -29.25M | Total Liabilities |
| 13.13M | 15.30M | 12.53M | 10.21M | 10.80M | 7.31M | Stockholders Equity |
| 110.92M | 120.26M | 141.85M | 142.49M | 150.82M | 27.24M |
| Cash Flow | Free Cash Flow | ||||
| -35.61M | -30.81M | -27.79M | -24.24M | -30.38M | -21.29M | Operating Cash Flow |
| -35.61M | -30.81M | -27.79M | -24.24M | -30.38M | -21.29M | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Financing Cash Flow |
| 12.62M | 11.97M | 29.65M | 21.29M | 153.24M | 28.35M |
Anavex Life Sciences Technical Analysis
Positive
9.00
Price Trends
9.57
Negative
8.78
Positive
7.03
Positive
Market Momentum
-0.10
Negative
52.34
Neutral
81.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVXL, the sentiment is Positive. The current price of 9 is above the 20-day moving average (MA) of 8.49, below the 50-day MA of 9.57, and above the 200-day MA of 7.03, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 81.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVXL.
Anavex Life Sciences Risk Analysis
Anavex Life Sciences disclosed 48 risk factors in its most recent earnings report. Anavex Life Sciences reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Anavex Life Sciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.87B | 12.33 | 38.89% | ― | 31.85% | ― | |
69 Neutral | $21.03B | 12.85 | 10.36% | ― | -1.60% | 39.71% | |
51 Neutral | $5.83B | ― | -231.63% | ― | 42.53% | -15.29% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
48 Neutral | $763.88M | ― | -37.72% | ― | ― | -3.08% | |
42 Neutral | $124.63M | ― | -17.19% | ― | ― | 81.00% | |
40 Underperform | $4.52M | ― | -323.80% | ― | ― | 45.99% |
* Healthcare Sector Average
Performance Comparison
AVXL
Anavex Life Sciences
9.00
3.86
75.10%
ACAD
ACADIA Pharmaceuticals
16.78
-1.95
-10.41%
BIIB
Biogen
139.98
-79.64
-36.26%
SAVA
Cassava Sciences
2.61
-18.08
-87.39%
AXSM
Axsome Therapeutics
121.65
51.91
74.43%
ADIL
Adial Pharmaceuticals
0.67
-1.07
-61.49%
Anavex Life Sciences Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 8.56% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The conference call highlighted significant progress in Alzheimer’s treatment development, including promising trial results and a new patent. Financial stability and strategic clinical trials were also emphasized. However, increased expenses, net losses, and delays in certain programs were noted as challenges. Overall, the sentiment is cautiously optimistic, reflecting both achievements and areas needing further clarity.Highlights
Positive Phase 2b/3 Alzheimer’s Trial Results
The Phase 2b/3 trial for blarcamesine showed a significant reduction in clinical decline for early Alzheimer’s disease patients, with a 36.3% slowing in clinical progression at 48 weeks and 49.8% for the SIGMAR1 wild-type gene group.
Successful Publication and Stakeholder Support
Results from the Alzheimer’s trial were published in The Journal of Prevention of Alzheimer Disease. The company is receiving growing support from stakeholders and advocacy groups for their treatment approach.
New Patent Issuance
Anavex was granted a new U.S. patent expected to last until July 2039, covering crystalline polymorph compositions for neuroprotection and treatment of neurodegenerative disorders.
Strong Financial Position
Anavex reported a cash position of $120.8 million with no debt, providing an estimated runway of approximately four years.
Ongoing Clinical Developments
ANAVEX 3-71 Phase 2 study in schizophrenia is progressing, with results expected in the first half of 2025.
Lowlights
Increased Expenses and Net Loss
General and administrative expenses increased to $3.1 million from $2.7 million, and research and development expenses rose to $10.4 million from $8.7 million. The reported net loss for the quarter was $12.1 million.
Delayed Rett Syndrome Study
Plans for a new study in Rett syndrome are ongoing, but the timeline has been extended due to previous trials’ shortfalls.
Regulatory and Market Uncertainty
Pending regulatory approvals and market strategies, including potential partnerships for commercialization, remain uncertain.
Company Guidance
During the Anavex Life Sciences Fiscal 2025 First Quarter Conference Call, Dr. Christopher Missling, President and CEO, provided updates on the company's progress in Alzheimer's treatment development. The long-term data from the Phase 2b/3 ATTENTION-AD open-label extension trial showed a significant reduction in clinical decline over three years, with blarcamesine slowing clinical progression by 36.3% at 48 weeks for the overall group and 49.8% for the SIGMAR1 wild-type gene group. Financially, Anavex reported a cash position of $120.8 million as of December 31, 2024, with an operating cash use of $12.1 million during the quarter and a four-year cash runway at the current utilization rate. R&D expenses increased to $10.4 million from $8.7 million the previous year, contributing to a net loss of $12.1 million or $0.14 per share. Additionally, Anavex received a new U.S. patent for the crystalline forms of the dihydrogen phosphate salt of ANAVEX freebase, projected to last until July 2039, covering neurodegenerative disorder treatments. The company anticipates results from the Phase 2 ANAVEX 3-71 schizophrenia study in H1 2025 and is preparing for further regulatory submissions and stakeholder engagements globally.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.