Anavex Life Sciences Corp (OTCMKTS:AVXL) issued financial results for the three months completed March 31, 2015. The company reported that cash reserves stood at $6.3 million at end of quarter compared to $7 million in 2Q2014. The drop in cash/cash equivalents was due to use of funds in operations and progress of clinical study work. The company has adequate funds to boost its operations for next two years. It intends to utilize a major part of unutilized funds on the advancement of Phase II a clinical trial of ‘ANAVEX PLUS’ and ‘ANAVEX 2-73.’
The operating expenses
The company revealed that operating expenses in the quarter came lower at about $0.8 million from nearly $1 million recorded in the same period a year ago. The drop in operating expenses can be attributed to the onetime, non-cash expense that was included in financial results of 2Q2014. Also, Anavex reported increased research and development expenses in 2Q2015 driven by ongoing Phase II a clinical trial of lead drug candidates.
Anavex reported that net loss in the second quarter of FY2015 came around $1.7 million against a net loss of almost $1.0 million for the same quarter in FY2014. The widened net loss can be attributed to higher non-cash expenses during the three months ended March 31, 2015.
The management view
The Chief Executive Mr. Christopher U. Missling, PhD expressed that Anavex team had achieved outstanding progress to date with its clinical and business strategies. The Phase II a clinical program of leading drug candidates ANAVEX PLUS and ANAVEX 2-73 continue to do well. The preliminary results are expected in 3Q2015. In addition, the CEO stated that the company is thrilled with the potential of ANAVEX 2-73 as a leading drug candidate for multiple neurodegenerative diseases.
In last trading session, the stock price of AVXL consolidated and closed flat at $0.360.