Investors may want to use weakness in Alzheimer’s treatment stocks as opportunity.
Just the other day, Anavex Life Sciences (AVXL) fell from about $22 to $18.35. Cassava Sciences (SAVA) fell from a high of $144.63 to $81. All after Annovis Bio (ANVS) gapped lower from $109.44 to less than $40 on disappointing data with its Alzheimer’s candidate.
Annovis’ presentation at the Alzheimer’s Association International Conference (AAIC) raised doubts on its treatment.
In fact, as reported by Business Insider:
“Efficacy measured in Alzheimer’s disease patients using the ADAS-Cog11 showed that ANVS401 failed to show statistically significant difference versus placebo, 25 days following the treatment. Efficacy in Alzheimer’s disease and Parkinson’s disease patients using the mini-mental state examination test showed placebo faring better than ANVS401. The not-so-encouraging data sent investors scurrying out of the stock.”
While the news was a real downer for ANVS, it also forced AVXL and SAVA lower, creating a solid buy opportunity.
With Cassava, the company recently announced a positive biomarker for an open-label study of simufilam for Alzheimer’s. In a clinical study funded by the National Institutes of Health (NIH), simufilam significantly improved all measured biomarkers in patients with Alzheimer’s disease following 6 months of open-label treatment, according to a company release.
With AVXL, the company recently reported, “new data that established ANAVEX®2-73 to be a preventive treatment in the pharmacological model of Alzheimer’s disease (AD). Pre-treatment with ANAVEX®2-73, repeated once daily for one week before the Aβ (Abeta) challenge was protective in the Aβ25-35 peptide model of Alzheimer’s disease in mice. ANAVEX®2-73 significantly and dose-dependently prevented Aβ25-35-induced biomarker-correlated cognitive impairments, which were assessed one week after the Aβ (Abeta) insult during which no further ANAVEX®2-73 treatment took place,” as noted in a company press release.
While we wouldn’t race to buy ANVS just yet, the weakness in AVXL and SAVA appear to be strong buy opportunities.
The post Use Weakness in Alzheimer’s Disease Stocks as an Opportunity appeared first on Morningology.
