The Only Biotech Stock to Own for 2011

Written By Brian Hicks

Posted January 25, 2011

Take a look at the following chart:

Last week, my favorite biotech stock — Anavex (AVXL-OTCBB) — made a two-and-a-half year high, reaching an intra-day high of $4.75.

Readers who’ve followed my advice are sitting on at least a 50% gain… in most cases, even more.

I’ve been urging (heck, I’ve been begging) readers to get a position in Anavex before it’s too late.

Well my friend, that train is starting to leave the station, as Anavex has been on the receiving end of two excellent developments since the start of the year.

The first came as Obama signed into law the National Alzheimer’s Project Act (NAPA).

NAPA creates, for the first time, a coordinated national strategy to confront one of America’s most feared and costly diseases — a disease that will only plague more baby boomers as they age.

Given the scale of the Alzheimer epidemic and the growing number of Americans directly affected every single day, NAPA will provide an essential framework within the government that recognizes the Alzheimer crisis is no longer emerging… but is here.

Alzheimer’s — or the Grey Plague, as we’ve dubbed it — is a disease with no known cure. Robbed of memory, those who contract it die a slow and agonizing death while loved ones watch in horror.

Each year the numbers of lives destroyed by it grow.

And it’s easy to see why…

The United States has a rapidly aging population.

An estimated 7,000 boomers will turn 65 each day in 2011.

Think about that for a minute…

The current costs associated with AD are well into the billions. It’s no big surprise, then, that Alzheimer’s looms large on the radar screens of the major biotech companies.

It’s a giant — and growing — market. One which is attracting more and more money in search of a cure.

Anavex, just now entering Phase I, is in a unique position to attract the attention of the entire industry.

In fact, it’s already started to do just that…

You see, the second big development for Anavex came earlier in January when Alzheimer’s Weekly named ANAVEX 2-73 the promising clinical trial for 2011.

According to the press release:

Hoboken, NJ – January 6, 2011 — Anavex Life Sciences Corp. (“Anavex”, AVXL:OB) announced today that ANAVEX 2-73 has been named 2010’s “most promising trial drug” by the editorial staff at Alzheimer’s Weekly. The publication selected the ANAVEX 2-73 trial from a field of over 100 trials that treat dementias such as Alzheimer’s and following the review of more than 10,000 articles. Staffers and clinical experts of Alzheimer’s Weekly said that Anavex stands out when scrutinized against their key criteria for potential treatments, including small molecule drugs, oral bioavailability, possibility for disease modification, targeting multiple pathways, near-term availability and entering human trials.

“It is extremely rewarding for our team to receive such significant and independent third-party recognition for ANAVEX 2-73 and our unique approach in Alzheimer’s disease,” said Dr. Cameron Durrant, Executive Chairman of Anavex Life Sciences Corp. “The data generated from our extensive preclinical program suggests that ANAVEX 2-73 has the potential to be safe and well tolerated. Furthermore, it has shown encouraging early signs of efficacy in preclinical animal studies.”

The full Alzheimer’s Weekly article is available here.

ANAVEX 2-73 is the first of a new class of compounds that act through sigma-1 receptor agonism as well as muscarinic cholinergic effects and modulation of endoplasmic reticulum stress thought to trigger a series of intracellular effects which modify ion channel signaling at the mitochondrial level. Anavex has filed the regulatory submission to begin clinical studies of ANAVEX 2-73. The Phase I study will evaluate the maximum tolerated dose, pharmacokinetics, pharmacodynamics, safety and bioavailability of ANAVEX 2-73. A Phase IIa study in patients with Alzheimer’s disease and Mild Cognitive Impairment, currently scheduled to commence in mid 2011, may provide efficacy data as well as further safety data.

The company has been getting a lot of positive press lately, and for good reason. Its Alzheimer’s compound has shown particular promise in controlled lab tests, and as far as we can tell, is the best chance out there for a cure.

As the company moves through the Phase I process, expect the attention to become even more focused on the company.

By the time AVXL is done with Phase I and getting ready for Phase II, we’ll see a scramble as institutional players vie for a piece of the action.

And the share price should climb steadily as these events unfold.

I’ll have another update on the company after they announce the first subject in the Phase I trials, most likely in February or March.

I’ve said it before, and I’ll say again… Anavex is the most promising microcap biotech in the market today.

If you don’t have a position in Anavex, you better get one soon.

Profitably yours,


Publisher, Wealth Daily 

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