Anavex Life Sciences Corp., a clinical-stage biopharmaceutical company developing drug candidates to treat Alzheimer’s disease, other central nervous system (CNS) diseases, pain and various types of cancer, today reported financial results for the three months ended December 31, 2014.
Financial Highlights:
- Anavex had cash and cash equivalents of approximately $7.0 million as of December 31, 2014, compared with approximately $7.3 million as at September 30, 2014. Cash was used in operations and for the advancement of clinical trial work, offset by funds received from a private placement during the quarter.
- Anavex used approximately $0.7 million in cash to fund operations during the first three months of fiscal year 2015 and has sufficient cash for approximately two years.
- Operating expenses for the three months ended December 31, 2014 were approximately $0.8 million, compared to approximately $0.3 million for the quarter ended December 31, 2013. The increase was primarily attributable to research and development (R&D) expenses related to the Company’s Phase 2a clinical trial for ANAVEX 2-73, which commenced in December 2014. R&D expenses are expected to continue to increase over the remaining quarters in the current fiscal year as a result of this clinical trial and other auxiliary research and development activities.
- The net loss for the three months ended December 31, 2014 was approximately $0.8 million or $0.02 per share, compared to a net income of approximately $0.4 million or $0.01 for the same period in 2013.
“Our lead drug ANAVEX 2-73, which is active by itself and in combination with donepezil (Aricept®), is currently in an ongoing clinical trial Phase 2a. We expect to report initial data by Q3 2015. We anticipate that we currently have sufficient funding to complete the entire Phase 2a trial,” said Christopher U. Missling, PhD, President and Chief Executive Officer of Anavex. “ANAVEX 2-73 is orally available and has so far shown strong preclinical data relating to improved memory and the ability to potentially reverse and halt Alzheimer’s disease. Also, recent preclinical epilepsy data validates ANAVEX 2-73 as a prospective platform drug for other neurodegenerative diseases beyond Alzheimer’s. Anavex also has compounds in the pipeline for other CNS indications as well as pain and cancer. We remain extremely encouraged by our progress to date and look forward to exploring additional indications, including epilepsy, in parallel with our Phase 2a Alzheimer’s study.”
Recent Achievements
On February 9, 2015, Anavex confirmed positive preclinical data for its lead drug candidate ANAVEX 2-73 for the potential treatment of epilepsy, validating it also as a prospective platform drug for the treatment of other neurodegenerative diseases beyond Alzheimer’s. The data demonstrates significant improvement in the reduction of seizures in the test subjects relative to three generations of epilepsy drugs currently on the market, as well as potential significant synergy with each of these drugs.
On January 12, 2015, Anavex announced dosing of the first patient in the Phase 2a clinical trial of ANAVEX 2-73 and ANAVEX PLUS, which are being developed as an oral therapy and oral drug combination for the potential treatment of Alzheimer’s disease. The approved Phase 2a clinical trial is the first study of ANAVEX 2-73 in Alzheimer’s patients.
On January 6, 2015, Anavex announced that a paper in the current issue of the International Journal of Neuropsychopharmacology (IJNP) revealed that the sigma-1 receptor, the Company’s drug target, interacts positively and directly with the cannabinoid receptor. The scientific findings indicate that sigma-1 receptor modulation may protect against psychosis possibly connected to cannabis (marijuana) abuse, especially among the young, whose nervous systems are still maturing, or individuals with a genetic predisposition, which could potentially lead to schizophrenia.
The financial information for the three months ended December 31, 2014 should be read in conjunction with the Company’s interim consolidated financial statements, which have been filed on U.S. Securities and Exchange Commission’s EDGAR system and will be available on the Anavex website at www.anavex.com.