Is Anavex Life Sciences a Buy?
As a pre-revenue biotech company that's approaching decisive clinical and regulatory milestones, Anavex Life Sciences (NASDAQ: AVXL) isn't an investment for the faint of heart. It has no products on the market, and its share price is, for now, entirely dependent on how much the results of its clinical trials can impress investors.
And that makes it a speculative investment -- at best -- before even considering anything more substantive about its chances of success. But if that doesn't frighten you off, it's entirely possible that investors who buy the stock now may see an impressive run-up, and perhaps quite soon. So let's explore how realistic that possibility is to figure out whether the company is a good play or not.
There are at least a couple of good reasons why Anavex might be more worthy of investment than a lottery ticket. First, its pipeline focuses on drug development for neurological disorders like Alzheimer's disease, Parkinson's disease, and Rett syndrome. Five of its programs are in the later stages of clinical development, meaning that it could theoretically commercialize multiple medicines before the tail end of the decade if its data impresses regulators.
Source Fool.com
