Anavex Life Sciences Provides Business Update and Reports Fiscal 2022 Third Quarter Financial Results

Rhea-AI Summary

Anavex Life Sciences Corp. (AVXL) reported its fiscal Q3 2022 financial results, highlighting a net loss of $12.4 million, or $0.16 per share, compared to a loss of $10.2 million, or $0.14 per share a year prior. Cash reserves stand at $153.2 million. The company is advancing its clinical pipeline, focusing on therapies for neurodegenerative diseases, with anticipated data readouts for ANAVEX®2-73 in Alzheimer’s and Rett syndrome by year-end. The economic burden of Alzheimer’s disease is significant, projected to exceed $1 trillion in healthcare costs as the population ages.

Positive

• Upcoming data readouts for Alzheimer's and Rett syndrome studies expected by year-end.
• Cash reserves of $153.2 million indicate financial stability for further development.

Negative

• Net loss increased to $12.4 million, raising concerns about sustainability.
• R&D and administrative expenses grew, impacting overall financial health.

Company to host a webcast today at 4:30 p.m. Eastern Time

NEW YORK, Aug. 09, 2022 (GLOBE NEWSWIRE) -- Anavex Life Sciences Corp. (“Anavex” or the “Company”) (Nasdaq: AVXL), a clinical-stage biopharmaceutical company developing differentiated therapeutics for the treatment of neurodegenerative and neurodevelopmental disorders including Alzheimer’s disease, Parkinson’s disease, Rett syndrome and other central nervous system (CNS) diseases, today reported financial results for its fiscal quarter ended June 30, 2022.

“We are pleased with the progress of our clinical Precision Medicine SIGMAR1 platform pipeline and remain on track for the readout of the placebo-controlled ANAVEX®2-73 Phase 2b/3 Alzheimer’s disease clinical trial, a condition of significant unmet need and economic burden for which there are only limited approved pharmacological treatment options,” said Christopher U Missling, PhD, President and Chief Executive Officer of Anavex. “Subsequent data readouts, including the placebo-controlled Phase 2/3 Rett syndrome EXCELLENCE study, which completion is projected by year end as well as initiation of biomarker-driven Precision Medicine clinical studies are expected through the rest of the year as planned.”

ANAVEX®2-73 Program and other Near-Term Pipeline Data Updates:

• Last patient last visit in the randomized, placebo-controlled Phase 2b/3 study ANAVEX®2-73-AD-004 for the treatment of early Alzheimer’s disease occurred at the end of June 2022 and top line results are expected in the fall of 2022.
• Last patient last visit of the 48-week open label extension of the Parkinson's Disease Dementia Phase 2 study occurred this quarter and data expected by end of 2022.
• Completion of the randomized, placebo-controlled EXCELLENCE Phase 2/3 study ANAVEX®2-73-RS-003 for the treatment of pediatric patients with Rett syndrome is expected by end of 2022.
• Pipeline expansion of the ANAVEX platform using gene biomarkers of response and applying precision medicine for treatment of neurological disorders with high unmet medical need are expected 2022:
  • Meeting with FDA for discussing ANAVEX®2-73 Parkinson’s disease program including pivotal Phase 3 study.
  • Planned initiation of ANAVEX®2-73 imaging-focused Parkinson’s disease clinical study.
  • Planned initiation of a potentially pivotal Phase 2/3 study in Fragile X syndrome, the most frequent genetic cause of autism spectrum disorder.
  • Planned initiation of a Phase 2/3 clinical trial for the treatment of a new rare-disease indication.
  • Planned initiation of ANAVEX®3-71 Phase 2 clinical trials for schizophrenia, frontotemporal dementia (FTD) and Alzheimer’s disease indications.
    

Recent Business Highlights:

• Anavex presented the first entire clinical human Alzheimer’s disease and Parkinson’s disease gene pathway data from the ANAVEX®2-73-PDD-001 Parkinson’s Disease Dementia (PDD) study at the Alzheimer’s Association International Conference (AAIC), in San Diego, CA on July 31 – August 4, 2022.
• Anavex presented long-lasting effect of ANAVEX®3-71 preventing cognitive decline in a transgenic rat model of Alzheimer’s disease at the Alzheimer’s Association International Conference (AAIC), in San Diego, CA on July 31 – August 4, 2022.
• Anavex announced its very first scientific educational video news release of its broad SIGMAR1 platform. The video, published on June 21, 2022 presented an overview of the Company’s biomarker driven precision medicine approach and clinical development programs and was presented by several members of the Anavex management team.
• Anavex announced a peer-reviewed publication in American Journal of Medical Genetics identifying a blood biomarker for assessing treatment effect of ANAVEX®2-73 in Fragile X syndrome, which provided a strong scientific support for the planned clinical trial of ANAVEX®2-73 in Fragile X syndrome.

Financial Highlights:

• Cash and cash equivalents of $153.2 million on June 30, 2022, compared to $152.1 million at fiscal year end September 30, 2021.
• Net loss of $12.4 million, or $0.16 per share for the quarter compared to net loss of $10.2 million, or $0.14 per share for the comparable quarter of fiscal 2021.
• Research and development expenses of $9.3 million compared to $9.0 million for the comparable quarter of fiscal 2021.
• General and administrative expenses of $3.2 million compared to $2.4 million for the comparable quarter of fiscal 2021.

The financial information for the fiscal quarter ended June 30, 2022, should be read in conjunction with the Company’s interim condensed consolidated financial statements, which will appear on EDGAR, www.sec.gov and will be available on the Anavex website at www.anavex.com.

Webcast / Conference Call Information:

The live webcast of the conference call will be available on Anavex’s website at www.anavex.com.

The conference call can be also accessed by dialing +1 929 205 6099 for participants in the U.S. using the reference passcode 911357. A replay of the conference call will also be available on Anavex’s website for up to 30 days.

Economic Burden of Alzheimer’s Disease¹

Alzheimer’s disease is the most common cause of dementia and the fifth leading cause of death in adults older than 65 years. The estimated total healthcare costs for the treatment of Alzheimer disease in 2020 is estimated at $305 billion, with the cost expected to increase to more than $1 trillion as the population ages. Most of the direct costs of care for Alzheimer’s disease are attributed to skilled nursing care, home healthcare, and hospice care. Indirect costs of care, including quality of life and informal caregiving, are likely underestimated and are associated with significant negative societal and personal burden.

About Anavex Life Sciences Corp.

Anavex Life Sciences Corp. (Nasdaq: AVXL) is a publicly traded biopharmaceutical company dedicated to the development of novel therapeutics for the treatment of neurodegenerative and neurodevelopmental disorders including Alzheimer’s disease, Parkinson’s disease, Rett syndrome and other central nervous system (CNS) diseases, pain, and various types of cancer. Anavex’s lead drug candidate, ANAVEX®2-73 (blarcamesine), has successfully completed a Phase 2a clinical trial for Alzheimer’s disease, a Phase 2 proof-of-concept study in Parkinson’s disease dementia and both a Phase 2 and a Phase 3 study in adult patients with Rett syndrome. ANAVEX®2-73 is an orally available drug candidate that restores cellular homeostasis by targeting sigma-1 and muscarinic receptors. Preclinical studies demonstrated its potential to halt and/or reverse the course of Alzheimer’s disease. ANAVEX®2-73 also exhibited anticonvulsant, anti-amnesic, neuroprotective, and anti-depressant properties in animal models, indicating its potential to treat additional CNS disorders, including epilepsy. The Michael J. Fox Foundation for Parkinson’s Research previously awarded Anavex a research grant, which fully funded a preclinical study to develop ANAVEX®2-73 for the treatment of Parkinson’s disease. ANAVEX®3-71, which targets sigma-1 and muscarinic M1 receptors, is a promising clinical stage drug candidate demonstrating disease-modifying activity against the major hallmarks of Alzheimer’s disease in transgenic (3xTg-AD) mice, including cognitive deficits, amyloid, and tau pathologies. In preclinical trials, ANAVEX®3-71 has shown beneficial effects on mitochondrial dysfunction and neuroinflammation. Further information is available at www.anavex.com. You can also connect with the company on Twitter, Facebook, Instagram and LinkedIn.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the risks set forth in the Company’s most recent Annual Report on Form 10-K filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Anavex Life Sciences Corp. undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

Anavex Life Sciences Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the three months ended June 30, 2022 and 2021
(Unaudited)
Expressed in US Dollars
		2022			2021
Operating Expenses
General and administrative	$	3,185,451		$	2,434,127
Research and development		9,273,269			8,964,528
Total operating expenses		(12,458,720	)		(11,398,655	)
Other income (expenses)
Grant income		-			43,280
Research and development incentive income		682,432			1,363,661
Interest income, net		229,917			11,453
Foreign exchange (loss) gain, net		(732,549	)		(160,880	)
Total other income, net		179,800			1,257,514
Net loss before provision for income taxes		(12,278,920	)		(10,141,141	)
Income tax expense, current		(88,421	)		(39,000	)
Net loss and comprehensive loss	$	(12,367,341	)	$	(10,180,141	)
Net loss per share
Basic and diluted	$	(0.16	)	$	(0.14	)
Weighted average number of shares outstanding
Basic and diluted		77,442,236			70,589,651

Anavex Life Sciences Corp.
Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
For the nine months ended June 30, 2022 and 2021
(Unaudited)
Expressed in US Dollars
		2022			2021
Operating Expenses
General and administrative	$	9,167,560		$	6,138,528
Research and development		26,534,297			23,610,888
Total operating expenses		(35,701,857	)		(29,749,416	)
Other income (expenses)
Grant income		-			54,100
Research and development incentive income		2,328,675			3,593,856
Interest income, net		242,405			19,110
Foreign exchange (loss) gain, net		(408,541	)		17,191
Total other income, net		2,162,539			3,684,257
Net loss before provision for income taxes		(33,539,318	)		(26,065,159	)
Income tax expense, current		(148,201	)		(125,269	)
Net loss and comprehensive loss	$	(33,687,519	)	$	(26,190,428	)
Net loss per share
Basic and diluted	$	(0.44	)	$	(0.39	)
Weighted average number of shares outstanding
Basic and diluted		76,561,940			67,810,774

Anavex Life Sciences Corp.
Interim Condensed Consolidated Balance Sheets
Unaudited
Expressed in US Dollars
	June 30,			September 30,
		2022			2021
Assets
Current
Cash and cash equivalents	$	153,199,352		$	152,107,745
Incentive and tax receivables		6,559,829			9,136,831
Prepaid expenses and other current assets		461,963			371,914
Total Assets	$	160,221,144		$	161,616,490
Liabilities and stockholders' equity
Current Liabilities
Accounts payable	$	3,126,892		$	4,739,781
Accrued liabilities		5,913,821			5,614,774
Deferred grant income		443,831			443,831
Total Liabilities		9,484,544			10,798,386
Capital Stock		77,944			75,920
Additional paid-in capital		381,932,039			348,328,048
Accumulated deficit		(231,273,383	)		(197,585,864	)
Total Stockholders' Equity		150,736,600			150,818,104
Total Liabilities and Stockholders' Equity	$	160,221,144		$	161,616,490

For Further Information:

Anavex Life Sciences Corp.
Research & Business Development
Toll-free: 1-844-689-3939
Email: info@anavex.com

Investors:
Andrew J. Barwicki
Investor Relations
Tel: 516-662-9461
Email: andrew@barwicki.com

^{______________________________________
1} W Wong Economic Burden of Alzheimer Disease and Managed Care Considerations Am J Manag Care. 2020;26:S177-S183

FAQ

What were Anavex's financial results for Q3 2022?

Anavex reported a net loss of $12.4 million, or $0.16 per share, and cash reserves of $153.2 million.

When will the ANAVEX®2-73 Alzheimer's study results be released?

Top line results for the ANAVEX®2-73 Alzheimer’s study are expected in Fall 2022.

What is the economic burden of Alzheimer's disease?

The total healthcare cost for Alzheimer's is expected to exceed $1 trillion as the population ages.

How did Anavex's expenses change in Q3 2022?

Research and development expenses increased to $9.3 million, while general and administrative expenses rose to $3.2 million.