Anavex Life Sciences Corp. (AVXL) Shares Fall 20% in Pre-market After SEC Subpoena is Revealed and Financial Results Released


Anavex Life Sciences Corp. (NASDAQ:AVXL) shares have fallen 19.63% ($1.38) in pre-market trading this morning, after the company released some potentially disturbing news on their 10-K filing, and less than spectacular 2015 year-end results

According to the filing, the SEC issued a subpeona on December 22, indicating that they are conducting a formal investigation. While the terms of the investigation have not been made public, the company has said that they believe that it is in relation to unusual market activity surrounding shares of Anavex Life Sciences Corp. (NASDAQ:AVXL).

“The Company is fully cooperating with the SEC in this investigation and is unable to predict when this matter will be resolved or what further action, if any, the SEC may take in connection with it,” the filing reads.

As for the financial results, Anavex Life Sciences Corp. (NASDAQ:AVXL) had a net loss of $12.1 million ($0.65 per share) for 2015, compared to $10.0 million last year. Operating expenses for 2015 came in at $7.1 million, compared ot $3 million last year, and the company had cash and cash equivalents of $15.3 million on September 30, 2015, which compares to $7.3 million last year.

The stock closed at $7.03 during the last trading session. It is up 6.00% since November 29, 2015 and is uptrending. It has outperformed the S&P500 by 8.27%.

Anavex Life Sciences Corp., a biopharmaceutical company, is engaged in the discovery and development of drugs for the treatment of AlzheimerÂ’s disease, central nervous system diseases, and pain and various cancers. Its lead drug candidates include ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), which is in a Phase IIa clinical trial for the treatment of AlzheimerÂ’s disease. The companyÂ’s product candidates also include ANAVEX 3-71, a drug candidate that is effective in very small doses against the major AlzheimerÂ’s hallmarks in transgenic (3xTg-AD) mice via sigma-1 receptor activation and M1 muscarinic allosteric modulation; ANAVEX 1-41, a sigma-1 agonist for neuroprotective application; and ANAVEX 1037, ANAVEX 1079, and ANAVEX 1519 for the treatment of pain and various cancers. Anavex Life Sciences Corp. was founded in 2006 and is headquartered in New York, New York.