AND:" Avanir a compelling “buy and buy more” proposition"
"Recent accomplishments for Avanir (AVNR) marked the most exciting quarter in the history of the company, and it is highly likely that big news is on the near-term horizon. Avanir’s share price closed at $2.67, a gross undervaluation, in Friday's trading session. I expect Avanir’s share price to easily double prior to October when the FDA is expected to approve its key drug, Zenvia. And the stock price should easily reach $10 per share by early 2011, the expected launch time of Zenvia. The details of my analysis will be presented later in this article, but first, I will address the key drivers that make Avanir a compelling “buy and buy more” proposition"
"Promising Pipeline with Expandable Applications The Company’s lead product candidate, Zenvia (dextromethorphan hydrobromide/quinidine sulfate), has completed three Phase III clinical trials for the treatment of pseudobulbar affect (PBA) and has completed a Phase III trial for the treatment of patients with diabetic peripheral neuropathic pain (DPN pain). In the past 3 months, three firms (Wedbush, Cantor Fitzgerald, and Cannacord Adams) gave price targets that are more than 2 to 3 times the current share price. Wedbush analyst Mike King describes, "Avanir is currently an off-the-radar-screen company developing Zenvia, a late-stage asset for the treatment of pseudobulbar affect. PBA is itself a little-recognized, but serious and debilitating, disorder that typically is a consequence of any one of several neurologic insults, such as MS, ALS, or TBI...An investment in Avanir is reminiscent of the opportunity presented to investors when Fampridine-SR was in early development for Acorda (ACOR), which currently boasts a valuation of ~$1.5 billion." Quite noteworthy is that the company should have a broad label for all patients that have PBA. As per Keith Katkin, CEO of Avanir, " as has been the agreement all along with the FDA, if we study Zenvia in two separate neurologic populations, like we did in the STAR trial, then that should be sufficient for a broad label for all patients that have PBA." What is most exciting is the company’s strategy for future expansion, using Zenvia PBA approval as the express gateway to approval of many different types of pain applications, making the sky the limit for Avanir. 2Q2010 Developments Avanir’s management accomplished several key milestones in the second quarter: Patent protection - The Company received long-term (15 year) patent protection on Zenvia, securing its monopoly on Zenvia for years to come. Extremely Positive Data - Avanir provided extremely positive safety and efficacy data at the American Academy of Neurology meeting and American Psychiatric Association meeting.