A single drug and multiple study failures leave Anavex with nothing but cash

It took Anavex Life Sciences seven months to finally acknowledge the failure of a late-stage clinical trial in Rett syndrome.

The negative study outcome was never in doubt, so the only surprise from Tuesday’s announcement was the company’s lame attempt at damage control. Anavex is a serial dissembler of clinical trial results, so I was expecting better spin. Instead, management barely tried, which tells you the real results from the Rett study must be truly awful.

Anavex shares fell 31% to $6 in early trading. The company’s only drug in clinical development, called blarcamesine, is a zero. Rett is the latest failure, following earlier study failures in Alzheimer’s disease and Parkinson’s disease. Yet even with Tuesday’s drop in share price, Anavex still carries a fully diluted market value of nearly $650 million.

STAT+ Exclusive Story

Already have an account? Log in

This article is exclusive to STAT+ subscribers

Unlock this article — plus in-depth analysis, newsletters, premium events, and networking platform access.

Already have an account? Log in

Already have an account? Log in

Individual plans

Group plans

Monthly

$39

Totals $468 per year

$39/month Get Started

Totals $468 per year

Starter

$30

for 3 months, then $39/month

$30 for 3 months Get Started

Then $39/month

Annual

$399

Save 15%

$399/year Get Started

Save 15%

11+ Users

Custom

Savings start at 25%!

Request A Quote Request A Quote

Savings start at 25%!

2-10 Users

$300

Annually per user

$300/year Get Started

$300 Annually per user

View All Plans

Get unlimited access to award-winning journalism and exclusive events.

Subscribe

Log In