Anavex Life Sciences (NASDAQ:AVXL) Corp announced earlier this week that its Rett syndrome treatment showed a disease-modifying effect in a long-term clinical trial.
On news of the results, analysts at Dawson James Securities reiterated its Buy rating for the company and its price target of $39. Shares of Anavex rose 2.7% Friday afternoon to $8.12.
In the trial of Anavex2-73-RS-001, 24 of 25 patients who completed the study voluntarily enrolled in a 12-week open-label extension There, they received once-daily oral liquid Anavex2-73 formulation for further evaluation of long-term safety, tolerability and effectiveness.
Importantly, the effect of the drug in the initial study was maintained in the open-label 12-week extension study. Of those, patients assigned first to the drug in the first part of the study had a statistically significant reduction in disease severity compared to those who received a placebo.
That’s an important criterion for classification as a disease-modifying agent, analysts wrote.
“Our valuation is based on our therapeutic models and associated assumptions projected to 2030,” analysts wrote. “Our model assumes multiple financial raises, so our share count is based on a projected, fully diluted out-year basis. Given the early nature of the company and its dependence on clinical trial outcomes in the CNS space, we apply a probability of success (50%) in our models.”
Rett syndrome is a rare genetic mutation that impacts brain development in girls. Patients can gradually lose speech, coordination and use of their hands.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel