Anavex Life Sciences Corp (OTCMKTS:AVXL) stated its cash reserves declined to $6.3 million at end of the second quarter of 2015 from $7 million at end of 2Q2014. The cash/cash equivalents declined due to funds utilization in operations and advancement of clinical study programs.
However, the company ensured that it possess ample capital to support its planned operations for next two years. A major part of unused funds will be deployed for the advancement of Phase 2 a clinical study of its lead drug product candidates ‘ANAVEX PLUS’ and ‘ANAVEX 2-73.’
Decline in operating expenses
Anavex reported that operating expenses in the second quarter of fiscal came lower at nearly $0.8 million from $1 million for the second quarter in FY2014. The operating expenses declined as the company recorded onetime, non-cash expense in the second quarter of FY2014.
The Phase II a clinical study resulted in increased research and development costs in 2Q2015. The net loss in 2Q2015 stood at $1.7 million versus a net loss of approximately $1.0 million for the same period in FY2014. The net loss surged due to higher non-cash expenses in the respective quarter.
The management call
The Chief Executive Officer Mr. Christopher U. Missling, PhD said that Anavex accomplished outstanding progress to date with planned clinical and business strategies. In addition, the Phase II a clinical study of potential drugs ANAVEX PLUS and ANAVEX 2-73 is going well. The preliminary data of clinical program is expected to come sometime in 3Q2015. Mr. Missling concluded that the company is thrilled with the initial results of ANAVEX 2-73 as a potential drug targeting multiple neurodegenerative diseases.
In the current session, the stock price of Anavex Life Sciences Corp (OTCMKTS:AVXL) lost 1.35% to close the trading session at 0.365. The loss came at a share volume of 299,941 compared to average share volume of 1.28 million.