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Hawk’s Nest

Call Spread Positions for Positive Data in Small Biotech Avanex

by | Jun 17, 2021

Anavex (AVXL) late day buyer of 3000 July $25/$35 call spreads for $1.70 on 6/17, a $1.47B Biotech that has rallied 290% YTD with a recent boost from Biogen’s Alzheimer’s drug approval. AVXL is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics by applying precision medicine to central nervous system. Its lead compound, ANAVEX®2-73, is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other central nervous system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder caused by mutations in the X-linked gene, methyl-CpG-binding protein 2. AVXL has a very catalyst-rich rest of 2021 with ANAVEX®2-73 U.S. Rett syndrome Phase 2 study expected by the end of Q2, ANAVEX®2-73 Parkinson’s disease dementia (PDD) Phase 2 study expected in Q2, Top-line data AVATAR: Potentially pivotal Phase 2/3 adult RTT clinical trial in mid-2021, Top-line data Phase 1 ANAVEX®3-71 clinical trial in mid-2021, Top-line data EXCELLENCE: Potentially pivotal Phase 2/3 pediatric RTT clinical trial in 2H21, Top-line data ANAVEX®2-73-AD-004: Potentially pivotal Phase 2b/3 AD clinical trial in 1H22, Initiation of ANAVEX®2-73 imaging-focused Parkinson’s disease clinical trial in 2021, and more. Phase 2 Alzheimer’s data is expected mid-2022. AVXL has over $75M in cash with runway up to three years. HCW raised its target to $25 this week noting approval of blarcamesine for Alzheimer’s is not a 40% probability.