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Annovis BioThe much-publicized treatment for Alzheimer’s disease (ANVS) failed to significantly outperform a placebo in a mid-term test, causing the ANVS stock to plummet on Thursday.
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On several measures of cognition, the Annovis drug called Posiphen showed “positive trends”, but the results were not statistically significant. The company remained optimistic about its chances, saying Posiphen is effective in patients with Alzheimer’s and Parkinson’s.
But in the stock market today, ANVS stock slumped 60.3% to close at 43.50. Shares were even lower after office hours.
ANVS stocks collapse
Annovis targets mal-acting proteins which, he says, impact axonal transport. Axonal transport is how nerve cells communicate with each other. The company suggests that improving axonal transport could lead to cognitive benefit in patients with Alzheimer’s and Parkinson’s.
In Alzheimer’s disease, the effectiveness of a drug is measured by several scales. The Posiphen-treated group showed “improvement trends” on the Alzheimer’s Disease-Cognitive Subscale, or ADAS-Cog Rating Scale.
There were also “positive trends” on the Mini-Mental State Examination, or MMSE, and the Clinical Dementia Rating Scale Sum of Boxes, or CDR-SB. But the results weren’t statistically significant in patients with Alzheimer’s disease, so the ANVS stock took a hit.
On one scale, the Wechsler Adult Intelligence Scale, patients with Alzheimer’s disease treated with Posiphen had an improvement over those receiving the placebo. But this scale does not appear to be widely used in patients with Alzheimer’s disease.
Highly priced stock
Annovis shares have sprinted higher since Biogen‘s (BIIB) Aduhelm has obtained approval. Aduhelm is the first treatment for Alzheimer’s disease that changes an underlying component of the disease rather than just treating the symptoms. Experts are divided on whether Aduhelm provides cognitive benefit.
The news brings ANVS action to its lowest level since early June. Prior to Thursday, the shares held a blue-chip relative strength rating of 99, according to IBD Digital. This means that the ANVS share outperformed 99% of the shares in terms of performance over 12 months.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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