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Anavex Life Sciences (AVXL)
NASDAQ:AVXL
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Anavex Life Sciences
(NASDAQ:AVXL)
Rating:62Neutral
Price Target:―
Positive Factors
Clinical Trials
The successful completion of enrollment in the Phase 2 clinical study for ANAVEX3-71 signals progress in developing a treatment for schizophrenia.
Market Opportunity
The European market opportunity for blarcamesine is considered highly lucrative, with a regulatory decision expected soon.
Regulatory Approval
Positive commentary from the European Medicines Agency could have a huge upside to the stock and indicate success with other ex-US regulatory bodies.
Negative Factors
Partnership Concerns
The company is exploring partnership options, but no concrete deals have been announced at this time.
Regulatory Resistance
European and UK regulatory resistance to anti-amyloid antibodies reflects concerns around their risk-benefit profile and lack of imaging facilities for monitoring ARIA risk.
Regulatory Uncertainty
Uncertainty around approval in the U.S. and lack of any ex-US partnership news are the key holdups for the stock.
Anavex Life Sciences (AVXL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$654.80M
Dividend YieldN/A
Average Volume (3M)871.52K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue GrowthN/A
EPS Growth-3.08%
CountryUS
Employees42
SectorHealthcare
Sector Strength42
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.13
Shares Outstanding85,371,850
10 Day Avg. Volume1,046,057
30 Day Avg. Volume871,518
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)7.10
Price to Sales (P/S)0.00
P/FCF Ratio-23.82
Enterprise Value/Market Cap0.91
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda-4.96
Forecast
1Y Price Target
$28.50Price Target Upside278.49% 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 dedicated to the development of novel drug candidates to treat central nervous system (CNS) diseases. The company is primarily focused on developing therapies for Alzheimer's disease, Parkinson's disease, and other neurodegenerative and neurodevelopmental disorders. Anavex's lead compound, ANAVEX2-73 (blarcamesine), is being studied for its potential to modify disease progression and improve symptoms in these conditions.
How the Company Makes MoneyAnavex Life Sciences makes money primarily through the development and commercialization of its drug candidates. The company's revenue model hinges on successfully advancing its drug pipeline through clinical trials and obtaining regulatory approvals. Once approved, Anavex can generate revenue through the sale of its drugs to healthcare providers and patients. Additionally, the company may enter into partnerships or licensing agreements with larger pharmaceutical companies to co-develop or market its compounds, which can provide upfront payments, milestone payments, and royalties from sales. However, as a clinical-stage company, Anavex may not yet have significant revenue from product sales until its drugs are approved and commercially available.
Anavex Life Sciences Financial Statement Overview
Summary
Anavex Life Sciences shows a typical early-stage biotechnology financial profile with no revenue and consistent net losses. However, the balance sheet is strong with no debt, and the company has a good cash position. The financial sustainability depends heavily on future revenue generation from its biotech projects.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 |
| -42.66M | -52.88M | -55.76M | -54.40M | -41.92M | -30.76M | EBITDA |
| -24.27M | -45.29M | -55.76M | -50.94M | 0.00 | 0.00 | Net Income Common Stockholders |
| -35.95M | -43.00M | -47.51M | -47.98M | -37.91M | -26.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 115.77M | 132.19M | 151.02M | 149.16M | 152.11M | 29.25M | Total Assets |
| 117.14M | 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 |
| -115.77M | -132.19M | -151.02M | -149.16M | -152.11M | -29.25M | Total Liabilities |
| 17.38M | 15.30M | 12.53M | 10.21M | 10.80M | 7.31M | Stockholders Equity |
| 99.76M | 120.26M | 141.85M | 142.49M | 150.82M | 27.24M |
| Cash Flow | Free Cash Flow | ||||
| -29.81M | -30.81M | -27.79M | -24.24M | -30.38M | -21.29M | Operating Cash Flow |
| -29.81M | -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 |
| 6.20M | 11.97M | 29.65M | 21.29M | 153.24M | 28.35M |
Anavex Life Sciences Technical Analysis
Negative
7.53
Price Trends
8.80
Negative
9.16
Negative
8.04
Negative
Market Momentum
-0.33
Positive
36.45
Neutral
33.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVXL, the sentiment is Negative. The current price of 7.53 is below the 20-day moving average (MA) of 8.51, below the 50-day MA of 8.80, and below the 200-day MA of 8.04, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 36.45 is Neutral, neither overbought nor oversold. The STOCH value of 33.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $654.80M | ― | -40.13% | ― | ― | -3.08% | |
53 Neutral | $5.14B | 3.03 | -43.89% | 2.83% | 16.75% | -0.06% | |
50 Neutral | $635.54M | ― | -17.80% | ― | ― | 56.10% | |
48 Neutral | $505.55M | ― | 34.94% | ― | ― | ― | |
47 Neutral | $596.97M | ― | -15.59% | ― | -35.41% | -12.26% | |
47 Neutral | $741.01M | ― | -64.16% | ― | -30.25% | -5.92% | |
44 Neutral | $622.07M | ― | -44.59% | ― | -73.79% | -5.24% |
* Healthcare Sector Average
Performance Comparison
AVXL
Anavex Life Sciences
7.53
3.53
88.25%
VIR
Vir Biotechnology
4.50
-6.05
-57.35%
NRIX
Nurix Therapeutics
9.72
-5.45
-35.93%
ABCL
AbCellera Biologics
1.97
-1.88
-48.83%
DAWN
Day One Biopharmaceuticals
6.27
-7.50
-54.47%
BCAX
Bicara Therapeutics Inc.
9.27
-16.14
-63.52%
Anavex Life Sciences Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q2-2025)
| % Change Since: -11.93%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in Alzheimer's and schizophrenia treatment development, supported by a strong financial position and strategic board appointments. However, the company continues to face challenges with net losses and regulatory uncertainties.Q2-2025 Updates
Positive Updates
Significant Advancement in Alzheimer's Treatment
Open-label extension data of blarcamesine for Alzheimer's disease confirmed continued clinically meaningful benefits for early Alzheimer's disease patients. Over three years of continuous treatment, significant amelioration on clinical decline was observed, with benefits accruing up to four years.
Progress in Schizophrenia Clinical Trials
Successful completion of enrollment in the Phase 2 clinical study of ANAVEX3-71 for schizophrenia. Part A completed with encouraging preliminary safety and EEG biomarker results. Part B will provide more comprehensive data, with top-line data expected in the second half of this year.
Strong Financial Position
Cash position as of March 31st was $115.8 million with no debt, providing a runway of approximately four years.
Expansion of Scientific Advisory Board
Appointment of Professor Dr. Audrey Gabelle, a specialist in predictive, personalized medicine and digital healthcare in Alzheimer's disease, to the Anavex Scientific Advisory Board.
Negative Updates
Net Loss for the Quarter
Reported a net loss of $11.2 million for the quarter, equating to $0.13 per share.
Uncertainty in Regulatory Approvals
Ongoing uncertainty regarding the timeline for feedback from European and other regulatory bodies for blarcamesine approval.
Company Guidance
During the Anavex Life Sciences Fiscal 2025 Second Quarter Conference Call, key guidance and updates were provided regarding the company's progress and financial status. The company highlighted its ongoing focus on advancing its portfolio of precision compounds, particularly targeting Alzheimer's disease and schizophrenia. For Alzheimer's, the open-label extension data of blarcamesine showed continued clinically meaningful benefits over three years, demonstrating significant improvement in clinical decline measured by ADAS-Cog13 and ADCS-ADL. In schizophrenia, the Phase 2 clinical study of ANAVEX3-71 has successfully completed enrollment with 71 participants, and top-line data is expected in the second half of 2025. Financially, Anavex reported a cash position of $115.8 million as of March 31, 2025, with no debt, and a net loss of $11.2 million or $0.13 per share for the quarter. The company anticipates a runway of approximately four years at its current cash utilization rate.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.