Axovant Sciences (NASDAQ: AXON)


On Monday morning before the market opened, Axovant Sciences announced that they were ending their program that treated dementia when it failed to meet the primary endpoints in a phase 2 trial. This is devastating news for shareholders as share prices have shed over 45% and are now trading near record lows.

CEO Comments

“Based on the totality of intepirdine data to date, there is no evidence to support its further development. We are incredibly disappointed and saddened for the millions of people living with these difficult conditions, and are deeply grateful to the patients, caregivers and investigators who participated in our trials,” said David Hung, M.D., chief executive officer of Axovant. “For nelotanserin, we are encouraged by the positive trend in motor improvement observed on the UPDRS, especially in patients with DLB, and by the efficacy signal in patients with more severe SAPS-PD scores at baseline, particularly given the short treatment period at what we believe is the correct therapeutic dose. Therefore, we intend to discuss a larger confirmatory nelotanserin study with the FDA that is focused on DLB patients with motor deficits and more severe baseline psychotic symptoms. Separately, we will be working with Roivant to build our pipeline to develop other new therapies for patients with neurological conditions who so desperately need them.”

AXON Technicals

As you can see in the 5-minute chart above, $AXON is currently trading at $2.76 after closing Friday at $5.37, marking a 48% drop in value. There isn’t much down here for support other than pre-market lows and whole and half dollar marks so if you are looking for a bounce make sure to place hard stops. This stock will definitely be volatile so expect prices to be all over the place. Resistance will be met at $3.00, $4.00 and $4.50 with the next level coming in the $4.75 range.

When stocks experience big drops like this on unexpected news you will likely see a lot of longs jumping ship, which could put further selling pressure on it so this is a name that you would like to try and short off any bounce if you can get shares to borrow.

Axovant Sciences Profile

Axovant Sciences Ltd., a clinical-stage biopharmaceutical company, engages in developing and commercializing medicines for the treatment of dementia and related neurological disorders in the United States and Europe.

Its lead product candidate, intepirdine, a selective 5-HT6 receptor antagonist, which is in Phase III clinical trial for the treatment of Alzheimer??s disease; in Phase IIb clinical trial for treating dementia with Lewy bodies (DLB); and in Phase II clinical trial for treating cait and balance in Alzheimer’s disease, DLB, and Parkinson’s disease dementia.

The company is also developing nelotanserin, a selective 5-HT2A receptor inverse agonist, which is in Phase II clinical trial for the treatment of visual hallucinations in patients with Lewy body dementia (LBD) and REM behavior disorder in patients with LBD. In addition, it focuses on developing RVT-103, a combination of donepezil and a peripheral muscarinic receptor antagonist; and RVT-104, a combination of rivastigmine and a peripheral muscarinic receptor antagonist as treatments for patients with Alzheimer’s disease or DLB.

The company was formerly known as Roivant Neurosciences Ltd. and changed its name to Axovant Sciences Ltd. in March 2015. The company was founded in 2014 and is based in London, the United Kingdom. Axovant Sciences Ltd. is a subsidiary of Roivant Sciences Ltd. –Yahoo