Item 2. Management’s Discussion and Analysis
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Forward-Looking Statements
This Quarterly Report on Form 10-Q includes forward-looking
statements. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements
regarding our anticipated future clinical and regulatory milestone events, future financial position, business strategy and plans and
objectives of management for future operations, are forward-looking statements. The words “believe,” “may,” “estimate,”
“continue,” “anticipate,” “intend,” “expect” “should,” “forecast,”
“potential,” “predict”, “could,” “would,” “will,” “suggest,” “plan”
and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such forward-looking statements include,
without limitation, statements regarding:
●
volatility in our stock
price and in the markets in general;
●
our ability to successfully
conduct preclinical studies and clinical trials for our product candidates;
●
our ability to raise additional
capital on favorable terms and the impact of such activities on our stockholders and stock price;
●
our ability to generate
any revenue or to continue as a going concern;
●
our ability to execute
our research and development plan on time and on budget;
●
our products candidates’
ability to demonstrate efficacy or an acceptable safety profile;
●
our ability to obtain the
support of qualified scientific collaborators;
●
our ability, whether alone
or with commercial partners, to successfully commercialize any of our product candidates that may be approved for sale;
●
our ability to identify
and obtain additional product candidates;
●
our reliance on third parties
in non-clinical studies and clinical trials;
●
our ability to defend against
product liability claims;
●
our ability to safeguard
against security breaches;
●
our ability to obtain and
maintain sufficient intellectual property protection for our product candidates;
●
our ability to comply with
our intellectual property licensing agreements;
●
our ability to defend against
claims of intellectual property infringement;
●
our ability to comply with
the maintenance requirements of the government patent agencies;
●
our ability to protect
our intellectual property rights throughout the world;
●
competition;
●
the anticipated start dates,
durations and completion dates of our ongoing and future clinical trials;
●
the anticipated designs
of our future clinical trials;
●
our ability to attract
and retain qualified employees;
●
the impact of Fast Track
designation on receipt of actual FDA approval;
●
our anticipated future
regulatory submissions and our ability to receive regulatory approvals to develop and market our product candidates, including any
orphan drug or Fast Track designations; and
●
our anticipated future
cash position and ability to obtain funding for our operations.
We have based these forward-looking statements largely
on our current expectations and projections about future events, including the responses we expect from regulatory authorities and financial
trends that we believe may affect our financial condition, results of operations, business strategy, preclinical studies and clinical
trials, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions including
without limitation the risks described in “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K filed with the
Securities and Exchange Commission on November 27, 2023. These risks are not exhaustive. Other sections of this Quarterly Report on Form
10-Q include additional factors which could adversely impact our business and financial performance. Moreover, we operate in a very competitive
and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all
risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any forward-looking statements. You should not rely upon forward-looking
statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements
will be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as
required by applicable laws including the securities laws of the United States, we assume no obligation to update or supplement forward-looking
statements.
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As used in this Quarterly Report on Form 10-Q, the
terms “we,” “us,” “our,” “Company”, and “Anavex” mean Anavex Life Sciences
Corp., unless the context clearly indicates otherwise.
Our Current Business
Anavex Life Sciences Corp. is a clinical stage biopharmaceutical
company engaged in the development of differentiated therapeutics by applying precision medicine to central nervous system (“CNS”)
diseases with high unmet need. We analyze genomic data from clinical trials to identify biomarkers, which we use in the analysis of our
clinical trials.
Our lead product candidate, ANAVEX ® 2-73
(blarcamesine), is being developed to treat Alzheimer’s disease, Parkinson’s disease and potentially other central nervous
system diseases, including rare diseases, such as Rett syndrome, a rare severe neurological monogenic disorder caused by mutations in
the X-linked gene, methyl-CpG-binding protein 2 (“MECP2”).
We currently have two core programs and two seed programs.
Our core programs are at various stages of clinical and preclinical development, in neurodegenerative and neurodevelopmental diseases.
The following table summarizes key information about our programs:
* = Orphan Drug Designation by the FDA
Anavex has a portfolio of compounds varying in sigma-1
receptor (SIGMAR1) binding activities. The SIGMAR1 gene encodes the SIGMAR1 protein, which is an intracellular chaperone protein with
important roles in cellular communication. SIGMAR1 is also involved in transcriptional regulation at the nuclear envelope and restores
homeostasis and stimulates recovery of cell function when activated. In order to validate the ability of our compounds to activate quantitatively
the SIGMAR1, we performed, in collaboration with Stanford University, a quantitative Positron Emission Tomography (PET) imaging scan in
mice, which demonstrated a dose-dependent ANAVEX ® 2-73 (blarcamesine) target engagement or receptor occupancy with SIGMAR1
in the brain.
20
Source: Reyes S et al.,
Sci Rep. 2021 Aug 25; 11(1):17150
Cellular Homeostasis
Many diseases are possibly directly caused by chronic
homeostatic imbalances or cellular stress of brain cells. In pediatric diseases, such as Rett syndrome or infantile spasms, chronic cellular
stress is possibly caused by the presence of a constant genetic mutation. In neurodegenerative diseases, such as Alzheimer’s and
Parkinson’s diseases, chronic cellular stress is possibly caused by age-correlated buildup of cellular insult and hence chronic
cellular stress. Specifically, defects in homeostasis of protein or ribonucleic acid (“RNA”) lead to the death of neurons
and dysfunction of the nervous system. The spreading of protein aggregates resulting in a proteinopathy, a characteristic found in Alzheimer’s
and Parkinson’s diseases that results from disorders of protein synthesis, trafficking, folding, processing or degradation in cells.
The clearance of macromolecules in the brain is particularly susceptible to imbalances that result in aggregation and degeneration in
nerve cells. For example, Alzheimer’s disease pathology is characterized by the presence of amyloid plaques, and neurofibrillary
tangles, which are aggregates of hyperphosphorylated Tau protein that are a marker of other diseases known as tauopathies as well as inflammation
of microglia. With the SIGMAR1 activation through SIGMAR1 agonists like ANAVEX ® 2-73 (blarcamesine), our approach is to
restore cellular balance (i.e. homeostasis). Therapies that correct defects in cellular homeostasis might have the potential to halt or
delay neurodevelopmental and neurodegenerative disease progression.
ANAVEX ® 2-73 (blarcamesine) specific
Biomarkers
As part of some of our clinical trials, we have incorporated
a genomic analysis to better understand potential populations for whom our clinical programs might benefit. In our clinical trials, a
full genomic analysis of Alzheimer’s disease patients treated with ANAVEX ® 2-73 (blarcamesine) has helped us identify
actionable genetic variants. A significant impact of the genomic biomarkers SIGMAR1, the direct target of ANAVEX ® 2-73 (blarcamesine)
and COMT, a gene involved in memory function, on the drug response level was identified, leading to an early ANAVEX ® 2-73
(blarcamesine) specific biomarker hypothesis. We believe that excluding patients with SIGMAR1 identified biomarker variant (approximately
10%-20% of the population) in prospective studies would identify approximately 80%-90% patients that would display clinically significant
improved functional and cognitive scores. The consistency between the identified DNA and RNA data related to ANAVEX ® 2-73
(blarcamesine), which are considered independent of Alzheimer’s disease pathology, as well as multiple endpoints and time-points,
provides support for the potential precision medicine clinical development of ANAVEX ® 2-73 (blarcamesine) by using genetic
biomarkers identified within the trial population itself to either confirm the mechanism of action of ANAVEX ® 2-73 (blarcamesine)
or target patients who are most likely to respond to ANAVEX ® 2-73 (blarcamesine) treatment. We may in the future utilize
such an approach in Alzheimer’s disease as well as indications like Parkinson’s disease dementia or Rett syndrome in which
ANAVEX ® 2-73 (blarcamesine) is currently being studied.
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Clinical Trials Overview
Alzheimer’s Disease
In November 2016, we completed a Phase 2a clinical
trial, consisting of Part A and Part B, which lasted a total of 57 weeks, for ANAVEX ® 2-73 in mild-to-moderate Alzheimer’s
patients. This open-label randomized trial in Australia met both primary and secondary endpoints and was designed to assess the safety
and exploratory efficacy of ANAVEX ® 2-73 in 32 patients. ANAVEX ® 2-73 targets sigma-1 and muscarinic receptors,
which have been shown in preclinical studies to reduce stress levels in the brain believed to restore cellular homeostasis and to reverse
the pathological hallmarks observed in Alzheimer’s disease. In October 2017, we presented positive pharmacokinetic (“PK”)
and pharmacodynamic (“PD”) data from the Phase 2a clinical trial, which established a concentration-effect relationship between
ANAVEX ® 2-73 and trial measurements. These measures obtained from all patients who participated in the entire 57 weeks include
exploratory cognitive and functional scores as well as biomarker signals of brain activity. Additionally, the clinical trial appeared
to show that ANAVEX ® 2-73 activity was enhanced by its active metabolite (ANAVEX19-144), which also targets the SIGMAR1
receptor and has a half-life approximately twice as long as the parent molecule.
Two consecutive trial extensions for the Phase 2a
trial have allowed participants who completed the 52-week Part B of the trial to continue taking ANAVEX ® 2-73, providing
an opportunity to gather extended safety data for a cumulative time period of five years. In August 2020, patients completing these Phase
2a trial extensions were granted continued access to treatment with ANAVEX ® 2-73 through the Australian Government Department
of Health – Therapeutic Goods Administration’s compassionate use Special Access Scheme.
A larger Phase 2b/3 double-blind, placebo-controlled trial of ANAVEX ® 2-73
in Alzheimer’s disease commenced in August 2018. The Phase 2b/3 trial enrolled 509 patients, which were treated with a convenient
once-daily oral formulation of ANAVEX ® 2-73 for 48 weeks, randomized 1:1:1 to two different ANAVEX ® 2-73
doses or placebo. The trial took place at 52 sites across North America, Europe and Australia. Primary and secondary endpoints to assess
safety and both cognitive and functional efficacy, were measured through the Alzheimer’s Disease Assessment Scale – Cognitive
Subscale test (“ADAS-Cog”), Alzheimer’s Disease Cooperative Study – Activities of Daily Living (“ADCS-ADL”)
and Clinical Dementia Rating – Sum of Boxes for cognition and function (“CDR-SB”). In addition to these endpoints, the
ANAVEX ® 2-73 Phase 2b/3 trial design incorporated pre-specified statistical analyses related to potential genomic precision
medicine biomarkers previously identified in the ANAVEX ® 2-73 Phase 2a clinical trial. The trial was completed in mid-2022
and, in December 2022, the Company presented topline results from the Phase 2b/3 clinical trial. All statistical analysis were performed
by outside consultancy companies.
Furthermore, all pre-specified
clinical endpoints were analyzed using a mixed model for repeated measures (MMRM). Under the multiplicity control rule, a trial is successful
in meeting the co-primary endpoints if the significance of each endpoint is P < 0.05, or if the significance of only one co-primary
endpoint is P < 0.025. If only one primary endpoint is significant at an α level of 0.025, then the secondary endpoint will be
evaluated at the same level of 0.025. The trial was successful, since the differences in the least-squares mean (LSM) change from baseline
to 48 weeks between the ANAVEX ® 2-73 and placebo groups for ADAS-Cog13 was significant at a level of P < 0.025 and for
CDR-SB was significant at a level of P < 0.025, in the patients with early Alzheimer’s disease.
The
comparison of individual dose groups vs placebo also supports blarcamesine’s efficacy. For the primary endpoint ADAS-Cog13, blarcamesine
is significantly better than placebo for both the 50 mg (−2.149; P = 0.021) and the 30 mg (−1.934; P = 0.026) blarcamesine
dosage groups at Week 48, representing that blarcamesine slowed clinical progression at 48 weeks by 38.5% and 34.6% in 50 mg and 30 mg
groups vs. placebo, respectively. The functional co-primary endpoint, ADCS-ADL, was trending in a positive direction but did not reach
significance at Week 48. The key secondary endpoint CDR-SB was significantly improved vs. placebo in both 50 mg (−0.465; P = 0.045)
and 30 mg (−0.502; P = 0.020) groups at Week 48. CGI-I was also significantly improved vs. placebo in both the 50 mg (−0.314;
P = 0.008) and the 30 mg (−0.248; P = 0.024) groups at Week 48. The findings are supported by biomarkers, including plasma Aβ42/40-ratio
and reduction of brain atrophy. Blarcamesine significantly slowed brain atrophy in key regions of interest, including the whole brain
by 37.6%, total grey matter by 63.5%, and lateral ventricles
by 25.1%.
In the respective safety population, common treatment-emergent
adverse events included dizziness, which was transient and mostly mild to moderate in severity, and occurred in 120 participants (35.8%)
during titration and in 76 participants (25.2%) during maintenance with ANAVEX®2-73 and 10 (6.0%) during titration and 9 (5.6%) during
maintenance with placebo.
A subsequent long-term open label extension study
of ANAVEX ® 2-73, referred to as the ATTENTION-AD trial, was initiated for patients who completed the 48-week Phase 2b/3
placebo-controlled trial referenced above. This trial extension for a duration of up to 96 additional weeks was completed in June 2024.
The trial will provide additional longer-term safety and efficacy data of ANAVEX ® 2-73 in persons with Alzheimer’s
disease.
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Rett Syndrome
In February 2016, we presented positive preclinical
data for ANAVEX ® 2-73 in Rett syndrome, a rare neurodevelopmental disease. The data demonstrated dose related significant
improvements in an array of behavioral and gait paradigms in a mouse model with an MECP2-null mutation that causes neurological symptoms
that mimic Rett syndrome. The study was funded by the International Rett Syndrome Foundation (“Rettsyndrome.org”). In January
2017, we were awarded a financial grant from Rettsyndrome.org of a minimum of $0.6 million to cover some of the costs of a multicenter
Phase 2 clinical trial of ANAVEX ® 2-73 for the treatment of Rett syndrome. This award was received in quarterly instalments
which commenced during fiscal 2018.
In March 2019, we commenced the first Phase 2 clinical
trial in a planned Rett syndrome program of ANAVEX ® 2-73 for the treatment of Rett syndrome. The clinical trials are being
conducted in a range of patient age demographics and geographic regions, utilizing an oral liquid once-daily formulation of ANAVEX ® 2-73.
The first Phase 2 trial, (ANAVEX ® 2-73-RS-001),
which took place in the United States, was completed in December 2020. This trial was a randomized double-blind, placebo-controlled safety,
tolerability, PK and efficacy trial of oral liquid ANAVEX ® 2-73 formulation in 25 adult female patients with Rett syndrome
over a 7-week treatment period including ANAVEX ® 2-73-specific genomic precision medicine biomarkers. The primary endpoint
of the trial was safety. The dosing of 5 mg ANAVEX ® 2-73 was well-tolerated and demonstrated dose-proportional PK. All secondary
efficacy endpoints of the trial showed statistically significant and clinically meaningful response in the Rett Syndrome Behaviour Questionnaire
(“RSBQ”) response, when compared to placebo, in the intent to treat (“ITT”) cohort (all participants, p = 0.011).
66.7% of ANAVEX ® 2-73 treated subjects showed a statistically significant improvement in RSBQ response as compared to 10%
of the subjects on placebo in the ITT cohort (all participants, p = 0.011). ANAVEX ® 2-73 treatment resulted in a sustained
improvement in Clinical Global Impression Improvement (CGI-I) response throughout the 7-week clinical trial, when compared to placebo
in the ITT cohort (all participants, p = 0.014). Consistent with previous ANAVEX ® 2-73 clinical trials, patients carrying
the common form of the SIGMAR1 gene treated with ANAVEX ® 2-73 experienced stronger improvements in the prespecified efficacy
endpoints.
The
second, international trial of ANAVEX ® 2-73 for the treatment of Rett syndrome, called the AVATAR trial, commenced in June
2019. This trial took place in Australia and the United Kingdom using a higher dose than the U.S. based Phase 2 trial for Rett
syndrome. The trial was a Phase 3 randomized, double-blind, placebo-controlled trial to evaluate the safety and efficacy of ANAVEX ® 2-73
in 33 adult patients over a 7-week treatment period including ANAVEX ® 2-73 specific precision medicine biomarkers. Based
upon the input from the successful U.S. Phase 2 Rett syndrome trial (ANAVEX ® 2-73-RS-001), we updated the endpoints for
the AVATAR trial (ANAVEX ® 2-73-RS-002) to appropriately assess the clinically meaningful outcome following International
Conference on Harmonization (ICH) guidelines. These updates were approved by the respective regulatory authorities in the U.K. and in
Australia, respectively, where the AVATAR trial was conducted.
The data from the AVATAR trial was released in February
2022. The clinical trial met all primary and secondary efficacy and safety endpoints, with consistent improvements in primary efficacy
endpoint, RSBQ response (p = 0.037), and secondary efficacy endpoints, Anxiety, Depression, and Mood Scale (ADAMS) (p = 0.010) and CGI-I
(p = 0.037) response. Efficacy endpoints demonstrated statistically significant and clinically meaningful reductions in Rett syndrome
symptoms. Convenient once daily oral liquid doses of up to 30 mg of ANAVEX ® 2-73 were also well tolerated with good medication
compliance. All patients who participated in the trial were eligible to receive ANAVEX ® 2-73 under a voluntary open label
extension protocol and subsequent Compassionate Use Program.
The very first trial of ANAVEX ® 2-73
in pediatric Rett syndrome patients, the EXCELLENCE trial, completed enrollment in February 2023. This randomized, double-blind, placebo-controlled
Phase 2/3 trial in pediatric patients with Rett syndrome included trial sites in Canada, Australia, and the United Kingdom. 92 pediatric
patients with Rett syndrome between the ages of 5 through 17 years were treated daily with up to 30 mg ANAVEX ® 2-73. Participants
were randomized 2:1 (ANAVEX ® 2-73:placebo) for 12 weeks, followed by a week 16 safety visit and topline results from this
trial were announced in early January 2024.
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After 12 weeks, the study showed improvement on the
key co-primary endpoint RSBQ, which is a detailed 45-item questionnaire for assessing multiple Rett syndrome characteristics by the patients’
caregivers. The other co-primary endpoint, the CGI-I, which represents a less granular assessment by the site investigators using a seven-point
scoring (one=“very much improved” to seven=“very much worse”), was not met.
In an ad-hoc analysis, using the predefined mixed-effect
model for repeated measure (MMRM) method, after 12 weeks of treatment, ANAVEX ® 2-73-treated patients improved LS Mean (SE)
-12.93 (2.150) points on their RSBQ total score compared to LS Mean (SE) -8.32 (2.537) points in placebo-treated patients. The LS Mean
difference (SE) of -4.61 (2.439) points between treated and placebo groups did not reach statistical significance (n=77; p=0.063). ANAVEX ® 2-73-treated
patients demonstrated a rapid onset of action with improvements at 4 weeks after treatment with a RSBQ total score LS Mean (SE) -10.32
(2.086) points in the drug-treated group compared to a LS Mean (SE) -5.67 (2.413) points in placebo-treated patients. The LS Mean difference
of -4.65 (2.233) points between treated and placebo groups was statistically significant (n=77; p=0.041).
The key secondary endpoint, the ADAMS, trended favorably.
In the same analysis, scores for all RSBQ and ADAMS subscales improved over the course of the study. Collectively, the RSBQ and ADAMS
demonstrated improvements in multiple areas, impacting positively in particular repetitive movements, nighttime disruptive behaviors,
and social avoidance.
A preliminary review of the safety results indicates
there were no new safety signals in the EXCELLENCE study, reinforcing the favorable and manageable safety profile observed with ANAVEX ® 2-73
to date.
All patients who participated in the trial were eligible
to receive ANAVEX ® 2-73 under a voluntary open label extension protocol.
A high enrollment rate in the Open Label Extension
(“OLE”) of over 91% and the high level of requests for the Compassionate Use Program (93%) provide solid numerical evidence
for the reported positive Real World Evidence (RWE) from patients with Rett syndrome under Compassionate Use Authorization. Families whose
children were previously on drug or placebo in the placebo-controlled trial commented favorably on the improvement of their child’s
daily life due to ANAVEX ® 2-73 treatment in the Compassionate Use Program.
Parkinson’s Disease
In September 2016, we presented positive preclinical
data for ANAVEX ® 2-73 in an animal model of Parkinson’s disease, which demonstrated significant improvements on behavioral,
histopathological, and neuroinflammatory endpoints. The study was funded by the Michael J. Fox Foundation. Additional data announced in
October 2017 indicated that ANAVEX ® 2-73 induced robust neurorestoration in experimental Parkinsonism. We believe the encouraging
results we have gathered in this preclinical model, coupled with the favorable profile of this product candidate in the Alzheimer’s
disease trial, support the notion that ANAVEX ® 2-73 has the potential to treat Parkinson’s disease dementia.
In October 2020, we completed a double-blind, randomized,
placebo-controlled proof-of-concept Phase 2 trial with ANAVEX ® 2-73 in Parkinson’s disease dementia in Spain and Australia,
to study the effect of the compound on both the cognitive and motor impairment of Parkinson’s disease. The Phase 2 trial enrolled
approximately 132 patients for 14 weeks, randomized 1:1:1 to two different ANAVEX ® 2-73 doses, 30 mg and 50 mg, or placebo.
The ANAVEX ® 2-73 Phase 2 Parkinson’s disease dementia trial design incorporated genomic precision medicine biomarkers
identified in the ANAVEX ® 2-73 Phase 2a Alzheimer’s disease trial.
The trial demonstrated that ANAVEX ® 2-73
was safe and well tolerated in oral doses up to 50 mg once daily. The results showed clinically meaningful, dose-dependent, and statistically
significant improvements in the Cognitive Drug Research (“CDR”) computerized assessment system analysis. Treatment with ANAVEX ® 2-73
also resulted in clinically meaningful improvements as measured by the global composite score of Parkinson’s disease symptom severity,
MDS-Unified Parkinson’s Disease Rating Scale (“MDS-UPDRS”) total score on top of standard of care including dopaminergic
therapy, levodopa and other anti-PD medications after 14 weeks of treatment, suggesting ANAVEX ® 2-73’s potential capability
of slowing and reversing symptoms that progress in Parkinson’s disease. In addition, the trial confirmed the precision medicine
approach of targeting SIGMAR1 as a genetic biomarker in response to ANAVEX ® 2-73 may result in improved clinical outcomes.
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A 48-week OLE ANAVEX2-73-PDD-EP-001 Phase 2 trial
was offered to participants after completion of the double-blind placebo-controlled ANAVEX2-73-PDD-001 Phase 2 trial discussed above.
The OLE trial assessed safety, tolerability and efficacy, measuring among others, MDS-Unified Parkinson’s Disease Rating Scale Parts
I, II, III, REM Sleep Behavior Disorder Screening Questionnaire (RBDSQ), Clinical Global Impression – Improvement (CGI-I), as well
as cognitive efficacy endpoint Montreal Cognitive Assessment (MoCA) over a 48-week period.
In March 2023, we reported the preliminary ANAVEX2-73-PDD-EP-001
OLE trial data, which demonstrated longitudinal beneficial effects of ANAVEX ® 2-73 on the pre-specified primary and secondary
objectives. Preliminary analysis reveals that ANAVEX ® 2-73 was found to be generally safe and well tolerated, and safety
findings in this trial were consistent with the known safety profile of ANAVEX ® 2-73. In respect to efficacy, across all
efficacy endpoints, patients performed better while on ANAVEX ® 2-73. While all patients were on drug holiday due to COVID-19
between the DB EOT and the OLE Baseline, the respective efficacy endpoints, including the MDS-UPDRS Part II + III and CGI-I, measured
at the end of trial of the double-blind study (DB EOT) and the OLE Baseline, were worsening, as expected in a progressive disease like
Parkinson’s. However, when patients resumed daily oral ANAVEX ® 2-73 treatment, a consistent improvement was observed
during the extension phase from OLE Baseline through OLE Week 24, and OLE Week 48, respectively. These results are consistent with the
pattern observed for all efficacy measures in the extension phase. The two endpoints, MDS-UPDRS Part II + III and CGI-I measured in this
study are the planned primary and key secondary endpoints in our forthcoming pivotal 6-month Parkinson’s disease study.
In January 2021, we were awarded a research grant
of $1.0 million from The Michael J. Fox Foundation for Parkinson’s Research to develop ANAVEX ® 2-73 for
the treatment of Parkinson’s disease. The award will explore utilization of PET imaging biomarkers to enable measurement of target
engagement and pathway activation of the SIGMAR1 with clinically relevant doses including in people with Parkinson’s disease.
Schizophrenia, Frontotemporal Dementia and Alzheimer’s
disease
In July 2020, we commenced the First-in-Human Phase
1 clinical trial of ANAVEX ® 3-71. ANAVEX ® 3-71 was previously granted orphan drug designation for the treatment
of Frontotemporal Dementia (“FTD”) by the FDA. ANAVEX ® 3-71 is an orally administered small molecule targeting
sigma-1 and M1 muscarinic receptors that is designed to be beneficial for neurodegenerative diseases. In preclinical studies, ANAVEX ® 3-71
demonstrated disease-modifying activity against the major hallmarks of Alzheimer’s disease in transgenic (3xTg-AD) mice, including
cognitive deficits, amyloid and tau pathologies, as well as beneficial effects on mitochondrial dysfunction and neuroinflammation.
The Phase 1
clinical trial was a prospective double-blind, randomized, placebo-controlled trial in Australia. A total of 36 healthy male and female
subjects were included. Single escalating doses of ANAVEX ® 3-71 were administered in order to evaluate the safety, tolerability,
and PK of ANAVEX ® 3-71 and the effects of food and gender on its PK in healthy volunteers.
The trial met
its primary and secondary endpoints of safety, with no serious adverse events (“SAEs”) or dose-limiting toxicities observed.
ANAVEX ® 3-71 was well tolerated in all cohorts receiving ANAVEX ® 3-71 in single doses ranging from 5 mg to
200 mg daily with no SAEs and no significant lab abnormalities in any subject. In the trial, ANAVEX ® 3-71 exhibited linear
PK. Its pharmacokinetics was also dose proportional for doses up to 160 mg. Gender had no effect on the PK of the drug and food had no
effect on the bioavailability of ANAVEX ® 3-71. The trial also met the secondary objective of characterizing the effect of
ANAVEX ® 3-71 on electrocardiogram (“ECG”) parameters. There were no clinically significant ECG parameters throughout
the trial. Participant QTcF measures were normal across all dose groups with no difference between ANAVEX ® 3-71 and placebo.
In October 2023
a peer-reviewed publication in the journal Neurobiology of Aging, titled “Early treatment with an M1 and sigma-1 receptor agonist
prevents cognitive decline in a transgenic rat model displaying Alzheimer-like amyloid pathology”, featured the orally available
small molecule ANAVEX ® 3-71 (AF710B). The preclinical study described the potential disease-modifying properties of ANAVEX ® 3-71
on Alzheimer’s disease pathology as a possible drug candidate for a potential once daily oral preventive strategy for Alzheimer’s
disease.
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In January 2024,
in another peer-reviewed publication in the journal Clinical Pharmacology in Drug Development , entitled, ‘ Population-Based
Characterization of the Pharmacokinetics and Food Effect of ANAVEX3-71, a Novel Sigma-1 Receptor and Allosteric M1 Muscarinic Receptor
Agonist in Development for Treatment of Frontotemporal Dementia, Schizophrenia, and Alzheimer Disease’ , reported the Population-based
characterization of the PK and food effect of ANAVEX ® 3-71 as part of the single ascending dose study in healthy participants
with the primary objective of assessing dose proportionality of ANAVEX ® 3-71, and to characterize the effect of food on
the PK of ANAVEX ® 3-71. The results from this PK evaluation demonstrated that ANAVEX ® 3-71, at single ascending
doses of 5 to 200 mg, is linear, dose proportional, and time invariant. Food had no effect on the PK of ANAVEX ® 3-71. This
data also expands the safety objectives met in this first-in-human study of ANAVEX ® 3-71, further supporting its drug development
program.
Based on these
results, and ANAVEX ® 3-71’s pre-clinical profile, we intend to advance ANAVEX ® 3-71 into a biomarker-driven
clinical development dementia program for the treatment of schizophrenia, FTD and Alzheimer’s disease, evaluating longitudinal effect
of treatment with ANAVEX ® 3-71.
Schizophrenia
In March 2024,
we commenced the U.S. FDA cleared ANAVEX ® 3-71-SZ-001 clinical trial, a double-blind, placebo-controlled Phase 2 trial in
schizophrenia. The trial consists of two parts to explore multiple ascending doses in individuals with schizophrenia followed by a 28-day
treatment period in a larger cohort. The trial will utilize standard clinical outcome measures for schizophrenia including the Positive
and Negative Symptoms Scale (PANSS), and novel fluid and electrophysiological biomarkers will also be assessed, leveraging several advances
in electroencephalography/event-related potential (EEG/ERP) biomarkers in schizophrenia developed in collaboration with the industry-led
ERP Biomarker Qualification Consortium. In addition to the electrophysiological biomarkers, we are also applying novel neuroinflammatory,
metabolomic, and transcriptomic biomarkers at the intersection of schizophrenia pathophysiology and ANAVEX ® 3-71’s
novel, dual mechanism of action.
Our Pipeline
Our research and development pipeline includes ANAVEX ® 2-73
currently in three different clinical trial indications, and several other compounds in different stages of clinical and pre-clinical
development.
Our proprietary SIGMACEPTOR™ Discovery Platform
produced small molecule drug candidates with unique modes of action, based on our understanding of sigma receptors. Sigma receptors may
be targets for therapeutics to combat many human diseases, both of neurodegenerative nature, including Alzheimer’s disease, as well
as of neurodevelopmental nature, like Rett syndrome. When bound by the appropriate ligands, sigma receptors influence the functioning
of multiple biochemical signals that are involved in the pathogenesis (origin or development) of disease. Multiple viruses including SARS-CoV-2
(COVID-19) induce cellular stress by intrinsic mitochondrial apoptosis and other related cellular processes, in order to ensure survival
and replication. Hence, it is possible that SIGMAR1 could play a role in modulating the cellular response to viral infection and ameliorate
pathogenesis.
Compounds that have been subjects of our research
include the following:
ANAVEX ® 2-73 (blarcamesine)
We believe ANAVEX ® 2-73 may offer a
disease-modifying approach in neurodegenerative and neurodevelopmental diseases by activation of SIGMAR1. ANAVEX ® 2-73 is
being developed in an oral liquid once-daily formulation for rare diseases such as Rett syndrome as well as an oral once-daily capsule
formulation for diseases such as Alzheimer’s disease.
In Rett syndrome, administration of ANAVEX ® 2-73
in liquid form resulted in both significant and dose-related improvements in an array of behavioral paradigms in the MECP2 HET Rett syndrome
disease model. In addition, in a further experiment sponsored by Rettsyndrome.org, ANAVEX ® 2-73 was evaluated in automatic
visual response and respiration tests in 7-month-old mice, an age at which advanced pathology is evident. Vehicle-treated MECP2 mice demonstrated
fewer automatic visual responses than wild-type mice. Treatment with ANAVEX ® 2-73 for four weeks significantly increased
the automatic visual response in the MECP2 Rett syndrome disease mice. Additionally, chronic oral dosing daily for 6.5 weeks of ANAVEX ® 2-73
starting at ~5.5 weeks of age was conducted in the MECP2 HET Rett syndrome disease mouse model assessed the different aspects of muscular
coordination, balance, motor learning and muscular strengths, some of the core deficits observed in Rett syndrome. Administration of ANAVEX ® 2-73
resulted in both significant and dose related improvements in an array of these behavioral paradigms in the MECP2 HET Rett syndrome disease
model.
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In May 2016 and June 2016, the FDA granted Orphan
Drug Designation to ANAVEX ® 2-73 for the treatment of Rett syndrome and infantile spasms, respectively. In November 2019,
the FDA granted ANAVEX ® 2-73 the Rare Pediatric Disease (RPD) designation for the treatment of Rett syndrome. The RPD designation
is intended to encourage the development of treatments for rare pediatric diseases.
Further, in February 2020, the FDA granted Fast Track
designation for the ANAVEX ® 2-73 clinical development program for the treatment of Rett syndrome. The FDA Fast Track program
is designed to facilitate and expedite the development and review of new drugs to address unmet medical needs in the treatment of serious
and life-threatening conditions.
For Parkinson’s disease, data demonstrates significant
improvements and restoration of function in a disease modifying animal model of Parkinson’s disease. Significant improvements were
seen on all measures tested: behavioral, histopathological, and neuroinflammatory endpoints. In October 2020, we completed a double-blind,
randomized, placebo-controlled proof-of-concept Phase 2 trial with ANAVEX ® 2-73 in Parkinson’s disease dementia, to
study the effect of the compound on both the cognitive and motor impairment of Parkinson’s disease. The Phase 2 trial enrolled approximately
132 patients for 14 weeks, randomized 1:1:1 to two different ANAVEX ® 2-73 doses, 30mg and 50mg, or placebo. The ANAVEX ® 2-73
Phase 2 Parkinson’s disease dementia trial design incorporated genomic precision medicine biomarkers identified in the ANAVEX ® 2-73
Phase 2a Alzheimer’s disease trial.
The trial demonstrated that ANAVEX ® 2-73
was safe and well tolerated in oral doses up to 50mg once daily. The results showed clinically meaningful, dose-dependent, and statistically
significant improvements in the CDR computerized assessment system analysis. We anticipate conducting further clinical trials of ANAVEX ® 2-73
in Parkinson’s disease dementia after submitting the results of the trial to the FDA to obtain regulatory guidance.
In Alzheimer’s disease animal models, ANAVEX ® 2-73
has shown pharmacological, histological and behavioral evidence as a potential neuroprotective, anti-amnesic, anti-convulsive and anti-depressive
therapeutic agent, due to its potent affinity to SIGMAR1 and moderate affinities to M1-4 type muscarinic receptors. In addition, ANAVEX ® 2-73
has shown a potential dual mechanism which may impact amyloid, tau pathology and inflammation. In a transgenic Alzheimer’s disease
animal model Tg2576, ANAVEX ® 2-73 induced a statistically significant neuroprotective effect against the development of
oxidative stress in the mouse brain, as well as significantly increased the expression of functional and synaptic plasticity markers that
is apparently amyloid-beta independent. It also statistically alleviated the learning and memory deficits developed over time in the animals,
regardless of sex, both in terms of spatial working memory and long-term spatial reference memory.
Based on the results of pre-clinical testing, we initiated
and completed a Phase 1 single ascending dose (SAD) clinical trial of ANAVEX ® 2-73. In this Phase 1 SAD trial, the maximum
tolerated single dose was defined per protocol as 55-60 mg. This dose is above the equivalent dose shown to have positive effects in mouse
models of Alzheimer’s disease. There were no significant changes in laboratory or ECG parameters. ANAVEX ® 2-73 was
well tolerated below the 55-60 mg dose with only mild adverse events in some subjects. Observed adverse events at doses above the maximum
tolerated single dose included headache and dizziness, which were moderate in severity and reversible. These side effects are often seen
with drugs that target CNS conditions, including Alzheimer’s disease.
In November 2016, we completed a Phase 2a clinical
trial for ANAVEX ® 2-73, for the treatment of Alzheimer’s disease. The open-label randomized trial was designed to
assess the safety and exploratory efficacy of ANAVEX ® 2-73 in 32 patients with mild-to-moderate Alzheimer’s disease.
The Phase 2a trial met both primary and secondary objectives of the trial.
In July 2018, we presented
the results of a genomic DNA and RNA evaluation of the participants in the Phase 2a clinical trial. More than 33,000 genes were analyzed
using unbiased, data driven, machine learning, artificial intelligence (AI) system for analyzing DNA and RNA data in patients treated
with ANAVEX ® 2-73. The analysis identified genetic variants that impacted response to ANAVEX ® 2-73, among
them variants related to the SIGMAR1, the target for ANAVEX ® 2-73. Results showed that trial participants with the common
SIGMAR1 wild type gene variant, which is estimated to be about 80% of the population worldwide, demonstrated improved cognitive (MMSE)
and functional (ADCS-ADL) scores. The results from this evaluation supported the continued evaluation of genomic information in subsequent
clinical trials, since these signatures can now be applied to neurological indications tested in future clinical trials with ANAVEX ® 2-73
including Alzheimer’s disease, Parkinson’s disease dementia and Rett syndrome.
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ANAVEX ® 2-73
data met prerequisite information in order to progress into a Phase 2b/3 placebo-controlled trial. On July 2, 2018, the Human Research
Ethics Committee in Australia approved the initiation of our Phase 2b/3, double-blind, randomized, placebo-controlled 48-week safety and
efficacy trial of ANAVEX ® 2-73 for the treatment of early Alzheimer’s disease. Clinical trial sites in Canada, the
United Kingdom, the Netherlands and Germany were also added. This Phase 2b/3 trial design incorporates inclusion of genomic precision
medicine biomarkers identified in the ANAVEX ® 2-73 Phase 2a trial.
We believe preclinical data from our studies also
supports further research into the use of ANAVEX ® 2-73 as a potential platform drug for other neurodegenerative diseases
beyond Alzheimer’s disease, Parkinson’s disease or Rett syndrome, more specifically, epilepsy, infantile spasms, Fragile X
syndrome, Angelman syndrome, multiple sclerosis, and, more recently, tuberous sclerosis complex (TSC). ANAVEX ® 2-73 demonstrated
significant improvements in all of these indications in the respective preclinical animal models.
In a preclinical study sponsored by the Foundation
for Angelman Syndrome, ANAVEX ® 2-73 was assessed in a mouse model for the development of audiogenic seizures. The results
indicated that ANAVEX ® 2-73 administration significantly reduced audiogenic-induced seizures in mice. In a study sponsored
by FRAXA Research Foundation regarding Fragile X syndrome, data demonstrated that ANAVEX ® 2-73 restored hippocampal brain-derived
neurotrophic factor (BDNF) expression to normal levels. BDNF under-expression has been observed in many neurodevelopmental and neurodegenerative
pathologies. BDNF signaling promotes maturation of both excitatory and inhibitory synapses. ANAVEX ® 2-73 normalization of
BDNF expression could be a contributing factor for the positive preclinical data observed in both neurodevelopmental and neurodegenerative
disorders like Angelman and Fragile X syndromes.
In addition, preclinical data to-date also indicates
that ANAVEX ® 2-73 has the potential to demonstrate protective effects of mitochondrial enzyme complexes during pathological
conditions, which, if impaired, may play a role in the pathogenesis of neurodegenerative and neurodevelopmental diseases.
In addition, preclinical data on ANAVEX ® 2-73
related to multiple sclerosis indicates that ANAVEX ® 2-73 may promote remyelination in multiple sclerosis disease. Further,
our data also demonstrates that ANAVEX ® 2-73 has the potential to provide protection for oligodendrocytes and oligodendrocyte
precursor cells (“OPCs”), as well as central nervous system neurons in addition to helping repair by increasing OPC proliferation
and maturation in tissue culture.
In March 2018, we presented preclinical data of ANAVEX ® 2-73
in a genetic mouse model of tuberous sclerosis complex (“TSC”). TSC is a rare genetic disorder characterized by the growth
of numerous benign tumors in many parts of the body with a high incidence of seizures. The preclinical data demonstrated that treatment
with ANAVEX ® 2-73 significantly increased survival and reduced seizures in those mice.
ANAVEX ® 3-71
ANAVEX ® 3-71 is a clinical drug candidate
with a novel mechanism of action via SIGMAR1 activation and M1 muscarinic allosteric modulation, which has been shown to enhance neuroprotection
and cognition in Alzheimer’s disease models. ANAVEX ® 3-71 is a CNS-penetrable potential disease modifying treatment
for cognitive impairments. We believe it is effective in very small doses against the major Alzheimer’s hallmarks in transgenic
(3xTg-AD) mice, including cognitive deficits, amyloid and tau pathologies, and also has beneficial effects on inflammation and mitochondrial
dysfunctions. ANAVEX ® 3-71 indicates extensive therapeutic advantages in Alzheimer’s and other protein-aggregation-related
diseases given its ability to enhance neuroprotection and cognition via SIGMAR1 activation and M1 muscarinic allosteric modulation.
A preclinical study examined the response of ANAVEX ® 3-71
in aged transgenic animal models and showed a significant reduction in the rate of cognitive deficit, amyloid beta pathology and inflammation
with the administration of ANAVEX ® 3-71. In April 2016, the FDA granted Orphan Drug Designation to ANAVEX ® 3-71
for the treatment of FTD.
During pathological conditions ANAVEX ® 3-71
demonstrated the formation of new synapses between neurons (synaptogenesis) without causing an abnormal increase in the number of astrocytes.
In neurodegenerative diseases such as Alzheimer’s and Parkinson’s disease, synaptogenesis is believed to be impaired. Additional
preclinical data presented also indicates that in addition to reducing oxidative stress, ANAVEX ® 3-71 has the potential
to demonstrate protective effects of mitochondrial enzyme complexes during pathological conditions, which, if impaired, are believed to
play a role in the pathogenesis of neurodegenerative and neurodevelopmental diseases.
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In July 2020, we commenced the first Phase 1 clinical
trial of ANAVEX ® 3-71. The trial took place in Australia and was a double-blind, randomized, placebo-controlled, Phase
1 trial to evaluate safety and tolerability, and PK of oral escalating doses of ANAVEX ® 3-71
including effects of food and gender in healthy volunteers. The trial met its primary and secondary
endpoints of safety, respectively, with no serious adverse events (SAEs) or dose-limiting toxicities observed, as more fully described
above under Clinical Trials Overview – Schizophrenia, Frontotemporal Dementia and Alzheimer’s disease .
Based on these
results, and ANAVEX ® 3-71 pre-clinical profile, the Company intends to advance ANAVEX ® 3-71 into a biomarker-driven
clinical development dementia program for the treatment of schizophrenia, FTD and Alzheimer’s disease, evaluating longitudinal effect
of treatment with ANAVEX ® 3-71. We believe the results of this clinical trial and preclinical study could serve as a basis
for advancing into respective registration trials in the U.S.
The first of
these trials, the ANAVEX ® 3-71-SZ-001 clinical trial, commenced in March 2024 and is more fully described above under
Clinical Trials Overview – Schizophrenia.
ANAVEX ® 1-41
ANAVEX ® 1-41 is a sigma-1 agonist. Pre-clinical
tests revealed significant neuroprotective benefits (i.e., protects nerve cells from degeneration or death) through the modulation of
endoplasmic reticulum, mitochondrial and oxidative stress, which damages and impairs cell viability. In addition, in animal models, ANAVEX ® 1-41
prevented the expression of caspase-3, an enzyme that plays a key role in apoptosis (programmed cell death) and loss of cells in the hippocampus,
the part of the brain that regulates learning, emotion and memory. These activities involve both muscarinic and SIGMAR1 systems through
a novel mechanism of action.
Preclinical data presented also indicates that ANAVEX ® 1-41
has the potential to demonstrate protective effects of mitochondrial enzyme complexes during pathological conditions, which, if impaired,
are believed to play a role in the pathogenesis of neurodegenerative and neurodevelopmental diseases.
ANAVEX ® 1066
ANAVEX ® 1066, a mixed sigma-1/sigma-2
ligand, is designed for the potential treatment of neuropathic and visceral pain. ANAVEX ® 1066 was tested in two preclinical
models of neuropathic and visceral pain that have been extensively validated in rats. In the chronic constriction injury model of neuropathic
pain, a single oral administration of ANAVEX ® 1066 dose-dependently restored the nociceptive threshold in the affected paw
to normal levels while leaving the contralateral healthy paw unchanged. Efficacy was rapid and remained significant for two hours. In
a model of visceral pain, chronic colonic hypersensitivity was induced by injection of an inflammatory agent directly into the colon and
a single oral administration of ANAVEX ® 1066 returned the nociceptive threshold to control levels in a dose-dependent manner.
Companion studies in rats demonstrated the lack of any effects on normal gastrointestinal transit with ANAVEX ® 1066 and
a favorable safety profile in a battery of behavioral measures.
ANAVEX ® 1037
ANAVEX ® 1037 is designed for the treatment
of prostate and pancreatic cancer. It is a low molecular weight, synthetic compound exhibiting high affinity for SIGMAR1 at nanomolar
levels and moderate affinity for sigma-2 receptors and sodium channels at micromolar levels. In advanced pre-clinical studies, this compound
revealed antitumor potential. It has also been shown to selectively kill human cancer cells without affecting normal/healthy cells and
also to significantly suppress tumor growth in immune-deficient mice models. Scientific publications highlight the possibility that these
ligands may stop tumor growth and induce selective cell death in various tumor cell lines. Sigma receptors are highly expressed in different
tumor cell types. Binding by appropriate sigma-1 and/or sigma-2 ligands can induce selective apoptosis. In addition, through tumor cell
membrane reorganization and interactions with ion channels, we believe our drug candidates may play an important role in inhibiting the
processes of metastasis (spreading of cancer cells from the original site to other parts of the body), angiogenesis (the formation of
new blood vessels) and tumor cell proliferation.
ANAVEX ® 1037 is currently in the pre-clinical
and clinical testing stages of development, and there is no guarantee that the activity demonstrated in pre-clinical models will be shown
in human testing.
29
We continue to identify and initiate discussions with
potential strategic and commercial partners to most effectively advance our programs and increase stockholder value. Further, we may acquire
or develop new intellectual property and assign, license, or otherwise transfer our intellectual property to further our goals.
Our Target Indications
We are developing compounds with potential application
to two broad categories and several specific indications, including:
Central Nervous System Di seases
●
Alzheimer’s disease
– In 2024, an estimated 6.9 million Americans are suffering from Alzheimer’s disease according to the Alzheimer’s
Association ® . The Alzheimer’s Association ® estimates that the annual number of new cases of Alzheimer’s
and other dementias is projected to double by 2050. Medications on the market today treat only the symptoms of Alzheimer’s
disease and do not have the ability to stop its onset or its progression. We believe that there is an urgent and unmet need for both
a disease modifying cure for Alzheimer’s disease as well as for better symptomatic treatments.
●
Parkinson’s disease
– Parkinson’s disease is a progressive disease of the nervous system marked by tremors, muscular rigidity, and slow,
imprecise movement. It is associated with degeneration of the basal ganglia of the brain and a deficiency of the neurotransmitter
dopamine. Parkinson’s disease currently is estimated to afflict more than 10 million people worldwide, typically middle-aged
and elderly people. The Parkinson’s disease market is expected to reach $11.5 billion by 2029, according to GlobalData.
●
Rett
syndrome – Rett syndrome is a rare X-linked genetic neurological and developmental disorder that affects the way the brain develops,
including protein transcription, which is altered and as a result leads to severe disruptions in neuronal homeostasis. It is considered
a rare, progressive neurodevelopmental disorder and is caused by a single mutation in the MECP2 gene. Because males have a different
chromosome combination from females, boys who have the genetic MECP2 mutation are affected in devastating ways. Most of them die before
birth or in early infancy. For females who survive infancy, Rett syndrome leads to severe impairments, affecting nearly every aspect
of the child’s life; severe mental retardation, their ability to speak, walk and eat, sleeping problems, seizures and even the
ability to breathe easily. Rett syndrome affects approximately 1 in every 10,000-15,000 females.
●
Schizophrenia - Schizophrenia
is a persistent and often disabling mental illness impacting how a person thinks, feels, and behaves, and affects nearly 24 million
people worldwide, including 2.8 million people in the U.S., according to the World Health Organization. It is characterized by three
symptom domains: positive symptoms (hallucinations and delusions), negative symptoms (difficulty enjoying life and withdrawal from
others), and cognitive impairment (deficits in memory, concentration, and decision-making). In part due to limitations with current
treatments, people living with schizophrenia often struggle to maintain employment, live independently, and manage relationships.
While current treatments can be effective in managing select symptoms, approximately 30% of people do not respond to therapy, with
an additional 50% experiencing only a partial improvement in symptoms or unacceptable side effects, according to the World Health
Organization.
● Fragile
X – Fragile X syndrome (FXS) is the most prevalent genetic form of intellectual disability
and autism spectrum disorder, primarily affecting boys. As with most neurodevelopmental disorders,
FXS is considered a condition of synaptic development and function. The disease has a range
of clinical presentations depending on the specific genetic changes associated with an “expansion”
of the FMR1 gene. The disease is characterized by deficits in long-term potentiation and
homeostatic plasticity. FXS has been detected in all populations and ethnic groups. Researchers
do not know the exact number for how many Americans could have full mutation FXS. Studies
estimate that the disease affects approximately 1:4,000 males and 1:6,000-8,000 females.
Worldwide, more than 1,400,000 people could be affected by FXS.
●
Depression – Depression
is a major cause of morbidity worldwide according to the World Health Organization. The global antidepressant drug market is projected
to reach $21 billion by 2030 according to Allied Market Research. Pharmaceutical treatment for depression has been historically dominated
by blockbuster brands. However, the dominance of the leading brands is waning, largely due to an increase in the number of approvals
for antidepressant drugs.
30
●
Epilepsy – Epilepsy
is a common chronic neurological disorder characterized by recurrent unprovoked seizures. These seizures are transient signs and/or
symptoms of abnormal, excessive or synchronous neuronal activity in the brain. According to the Centers for Disease Control and Prevention,
in 2015 epilepsy affected 3.4 million Americans. Today, epilepsy is often controlled, but not cured, with medications that are categorized
as older traditional anti-epileptic drugs and second generation anti-epileptic drugs. Because epilepsy afflicts sufferers in different
ways, there is a need for drugs used in combination with both traditional anti-epileptic drugs and second generation anti-epileptic
drugs.
●
Neuropathic Pain –
We define neuralgia, or neuropathic pain, as pain that is not related to activation of pain receptor cells in any part of the body.
Neuralgia is more difficult to treat than some other types of pain because it does not respond well to normal pain medications. Special
medications have become more specific to neuralgia and typically fall under the category of membrane stabilizing drugs or antidepressants.
Cancer
●
Malignant Melanoma –
Predominantly a skin cancer, malignant melanoma can also occur in melanocytes found in the bowel and the eye. Malignant melanoma
accounts for a large majority of skin cancer deaths. The treatment includes surgical removal of the tumor, adjuvant treatment, chemo
and immunotherapy, or radiation therapy. According to iHealthcareAnalyst, Inc. the worldwide malignant melanoma market is expected
to grow to $7.5 billion by 2029.
●
Prostate Cancer –
Specific to men, prostate cancer is a form of cancer that develops in the prostate, a gland in the male reproductive system. Cancer
cells may metastasize from the prostate to other parts of the body, particularly the bones and lymph nodes. Drug therapeutics for
prostate cancer are expected to increase to nearly $10.1 billion by the end of 2030 according to Market Research Future.
●
Pancreatic Cancer –
Pancreatic cancer is a malignant neoplasm of the pancreas. In the United States, approximately 62,000 new cases of pancreatic cancer
will be diagnosed this year and approximately 50,000 patients will die as a result of their cancer, according to the American Cancer
Society. Sales predictions by Market Data Forecast predict that the market for the global pharmaceutical treatment of pancreatic
cancer will increase to $3.7 billion by 2027.
Patents, Trademarks and Intellectual Property
We hold ownership or exclusive rights to twenty-five
(25) U.S. patents, twenty-five U.S. patent applications, and various PCT or ex-U.S. patent applications relating to our drug candidates,
methods associated therewith, and to our research programs.
We own one issued U.S. patent entitled “ANAVEX ® 2-73
and certain anticholinesterase inhibitors composition and method for neuroprotection,” which claims a composition of matter of ANAVEX ® 2-73
directed to a novel and synergistic neuroprotective compound combined with donepezil and other cholinesterase inhibitors. This patent
is expected to expire in June 2034, absent any patent term extension for regulatory delays. We own one issued U.S. patent entitled “A2-73
crystalline polymorph compositions of matter and methods of use thereof”. It claims crystals of A2-73 freebase or its fumarate salt,
dosage forms and pharmaceutical formulations. This patent is expected to expire in July 2039, absent any patent term extension for regulatory
delays. We own four issued U.S. patents each with claims directed to crystalline forms of ANAVEX ® 2-73. The first of these
four patents claims crystalline forms of ANAVEX ® 2-73, dosage forms and compositions containing crystalline ANAVEX ® 2-73,
and methods of treatment for Alzheimer’s disease using them. This patent is expected to expire in July 2036, absent any patent term
extension for regulatory delays. The second of these four patents claims pharmaceutical compositions containing a crystalline form of
ANAVEX ® 2-73, and methods of treatment for Alzheimer’s disease using the compositions. This patent is expected to
expire in June 2036, absent any patent term extension for regulatory delays. The third of these four patents claims pharmaceutical compositions
containing a crystalline form of ANAVEX ® 2-73, and methods of treatment for Alzheimer’s disease using the compositions.
This patent is expected to expire in June 2036, absent any patent term extension for regulatory delays. The fourth of these four patents
claims method of making certain crystalline forms ANAVEX ® 2-73. This patent is expected to expire in October 2036, absent
any patent term extension for regulatory delays. We also own three issued U.S. patents for seizure treatment. The first of these three
patents claims methods and dosage forms for treating seizures, the dosage forms containing a low-dose anti-epilepsy drug combined with
either: (i) ANAVEX ® 2-73 and its active metabolite ANAVEX ® 19-144; or (ii) ANAVEX ® 19-144. The
second of these three patents further claims a combination seizure treatment involving administration of an anti-epilepsy drug combined
with (i) ANAVEX ® 19-144,
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or (ii) ANAVEX 19-144 ® and ANAVEX 2-73 ® . The third of these three
patents claims a dosage form for seizure reduction, comprising (i) ANAVEX ® 19-144, (ii) ANAVEX ® 2-73, or (iii)
a combination of ANAVEX ® 19-144 and ANAVEX ® 2-73; and optionally further comprising a low-dose anti-epilepsy
drug. All three patents are expected to expire in October 2035, absent any patent term extension for regulatory delays. We also own four
issued U.S. patents with claims directed to treating neurodevelopmental disorders. These patents claim methods for treating a neurodevelopmental
disorder, multiple sclerosis, their related biochemical and functional abnormalities, or loss-of-function associated with a neurodevelopmental
disorder, by administering ANAVEX ® 2-73, ANAVEX ® 19-144, and/or ANAVEX ® 1-41 (another sigma
receptor ligand similar to ANAVEX ® 2-73), or compositions thereof. All four patents are expected to expire in January 2037,
absent any patent term extension for regulatory delays. In addition, we own one issued U.S. patent with claims directed to methods of
treating melanoma with a compound related to ANAVEX ® 2-73. This patent is expected to expire in February 2030, absent any
patent term extension for regulatory delays. We also own an issued U.S. patent that claims crystalline forms of ANAVEX ® 19-144,
dosage forms and compositions containing the crystalline forms of ANAVEX ® 19-144, and methods of treatment for Alzheimer’s
disease. This patent is expected to expire in July 2036, absent any patent term extension for regulatory delays. Further, we own one issued
U.S. patent with claims directed to methods of treating cardiac dysfunction with ANAVEX ® 2-73. This patent is expected to
expire in July 2038, absent any patent term extension for regulatory delays. Additionally, we own two issued U.S. patent for the treatment
of insomnia, anxiety, or agitation. The first of the two patents claims methods of treating insomnia or anxiety with ANAVEX ® 2-73,
ANAVEX ® 19-144, and/or ANAVEX ® 1-41. This patent is expected to expire in September 2038. The second of the
two patents claims a dosage form comprising any of, or any combination of ANAVEX ® 2-73, ANAVEX ® 19-144, and/or
ANAVEX ® 1-41. This patent is expected to expire in July 2038, absent any patent term extension for regulatory delays. Further,
we own one issued U.S. patent with claims directed to a method of treating systolic hypertension using ANAVEX ® 2-73. This
patent is expected to expire in July 2039, absent any patent term extension for regulatory delays. Additionally, we own one issued U.S.
patent with claims directed to pharmaceutical dosage forms of (-) enantiomer of ANAVEX ® 2-73. This patent is expected to
expire in July 2036, absent any patent term extension for regulatory delays.
We also own three (3) issued U.S. patents related
to ANAVEX ® 1066. The first of these two patents claims methods for treating or preventing pain using (+) ANAVEX ® 1066
isomer. The second patent claims methods for treating or preventing pain using (-) ANAVEX ® 1066 isomer. The third patent
claims dosage forms and pharmaceutical compositions comprising (+) ANAVEX ® 1066 isomer. All three patents are expected to
expire in November 2036, absent any patent term extension for regulatory delays.
For ANAVEX ® 2-73, ANAVEX ® 19-144,
ANAVEX ® 1-41, and ANAVEX ® 1066, we also have granted or pending applications in Australia, Canada, China,
Europe, Japan, and Hong Kong, which are expected to expire after 2035.
With regard to ANAVEX ® 3-71, we own
exclusive rights to two issued U.S. patents with claims respectively directed to the ANAVEX ® 3-71 compound and methods of
treating various diseases including Alzheimer’s with the same. These patents are expected to expire in April 2030, and January 2030,
respectively, absent any patent term extension for regulatory delays. We also own exclusive rights to related patents or applications
that are granted or pending in Australia, Canada, China, Europe, Japan, Korea, New Zealand, Russia, and South Africa, which are expected
to expire in January 2030.
We also own other patent applications and certain
granted foreign patents directed to enantiomers, crystals, formulations, uses, and patient selection methods that may provide additional
protection for one or more of our product candidates.
We regard patents and other intellectual property
rights as corporate assets. Accordingly, we attempt to optimize the value of intellectual property in developing our business strategy
including the selective development, protection, and exploitation of our intellectual property rights. In addition to filings made with
intellectual property authorities, we protect our intellectual property and confidential information by means of carefully considered
processes of communication and the sharing of information, and by the use of confidentiality and non-disclosure agreements and provisions
for the same in contractor’s agreements. While no agreement offers absolute protection, such agreements provide some form of recourse
in the event of disclosure, or anticipated disclosure.
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Our
intellectual property position, like that of many biomedical companies, is uncertain and involves complex legal and technical questions
for which important legal principles are unresolved. For more information regarding challenges to our existing or future patents, see
“Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on November
27, 2023.
Financial Overview
The following discussion should be read in conjunction
with our condensed consolidated interim financial statements and related notes thereto contained elsewhere in this report. Past operating
results are not necessarily indicative of results that may occur in future periods. The discussion contains forward-looking statements,
which involve a number of risks and uncertainties. See “Forward Looking Statements” included elsewhere in this report.
We are in the development stage and have not earned
any revenue since our inception in 2004. We do not anticipate earning any revenues until we can establish an alliance with other companies
to develop, co-develop, license, acquire or market our products.
Our operating costs consist primarily of research
and development activities including the cost of clinical trials and clinical supplies as well as clinical drug manufacturing and formulation.
Research and development expenses also include personnel related costs such as salaries and wages, and third-party contract research organization
(CRO) expenses in support of these clinical trials. Personnel costs include salaries and wages, benefits, and non-cash stock-based compensation
charges associated with options and other equity awards granted to employees and consultants who are directly engaged in support of our
research and development activities.
General and administrative expenses consist of personnel
costs, expenses for outside professional services and expenses associated with operating as a public company. Personnel costs consist
of salaries and wages, benefits and stock-based compensation for general and administrative personnel. Outside professional services and
public company expenses include expenses related to compliance and reporting, additional insurance expenses, audit and SOX compliance,
expenses associated with patent research, applications and filings, investor and stockholder relations activities and other administrative
expenses and professional services.
Comparison of the three and nine months ended June
30, 2024 and 2023
Operating Expenses
Total operating expenses for the quarter ended June
30, 2024 were $14.7 million, compared to $13.5 million for the comparable quarter ended June 30, 2023. Total operating expenses for the
nine-month period ended June 30, 2024 were $38.5 million, compared to $43.1 million for the comparable nine-month period ended June 30,
2023.
Our research and development expenses for the three
months ended June 30, 2024 were $11.9 million, as compared to $10.3 million for the three months ended June 30, 2023. The increase in
research and development expenses during the three-month period is primarily related to the following:
(i) an increase in personnel costs of $1.3 million mostly related to the addition of several new consultants
engaged to assist in the preparation of the submission of our Marketing Authorisation Application (MAA) to the European Medicines Agency
(EMA);
(ii) an increase of approximately $2.6 million over the comparable period relating to manufacturing activities
of ANAVEX ® 2-73 for potential commercial use, and to support the MAA; and
(iii) an increase of $0.9 million over the comparable period relating to expenditures on the ANAVEX ® 3-71-SZ-001
clinical trial, which trial commenced in the second quarter of fiscal 2024.
33
These increases were partially offset by (i) a decrease
in stock-based compensation expense of $0.9 million in the three-month period, as a result of the vesting of previous option awards (ii)
a decrease of approximately $1.0 million in the three-month period relating to our Rett syndrome program as a result of the completion
of the EXCELLENCE trial and the respective open label extension of the AVATAR trial and (iii) a decrease of approximately $0.9 million
in the three-month period in expenditures over the comparable period relating to our Alzheimer’s program, as a result of the completion
of the Phase 2b/3 clinical trial.
Our research and development expenses for the nine
months ended June 30, 2024 were $30.3 million, as compared to $33.7 million for the comparable nine month period ended June 30, 2023.
The decrease in research and development expenses during the nine-month period is primarily related to the following:
(i) a decrease in stock-based compensation expense of $4.2 million in the nine-month period, as a result of
the vesting of previous option awards and the extended timeline of milestone based vesting awards;
(ii) a decrease of approximately $3.1 million in the nine-month period in expenditures over the comparable
periods relating to our Rett syndrome program as a result of the completion of the EXCELLENCE trial and the respective open label extension
of the AVATAR trial; and
(iii) a decrease of approximately $2.3 million in the nine-month period in expenditures over the comparable
periods relating to our Alzheimer’s program as a result of the completion of the Phase 2b/3 clinical trial.
These decreases were partially offset by (i) an increase
of $1.4 million in nine-month period relating to expenditures on the ANAVEX ® 3-71-SZ-001 clinical trial, which trial commenced
in the second quarter of fiscal 2024, (ii) an increase of $1.2 million over the comparable period relating to startup costs associated
with our planned Phase 2/3 clinical trial in Parkinson’s disease, (iii) an increase of approximately $2.8 million over the comparable
period relating to manufacturing activities of ANAVEX ® 2-73 for potential commercial use and to the support the MAA and
(iv) an increase of approximately $1.2 million related to the addition of several new consultants engaged to assist in the preparation
for the submission of our MAA.
The following table summarizes our research and development
expenses for the three- and nine-months ended June 30, 2024 (in thousands):
Three months ended June 30,
Nine months ended June 30,
2024
2023
2024
2023
Cost of external service providers
$ 6,263
$ 5,224
$ 15,995
$ 17,443
Personnel costs
3,928
2,628
9,538
7,416
Stock-based compensation
1,491
2,416
4,524
8,733
Other common costs
188
15
226
65
Total research and development costs
$ 11,870
$ 10,283
$ 30,283
$ 33,657
During the three- and nine-months ended June 30, 2024
and 2023, external service providers cost by product candidate was as follows (in thousands):
Three months ended June 30,
Nine months ended June 30,
2024
2023
2024
2023
ANAVEX ® 2-73
$ 4,656
$ 4,288
$ 12,647
$ 15,038
ANAVEX ® 3-71
1,322
863
2,775
2,103
All other product candidates
5
—
71
3
Other external service provider costs
280
73
502
299
Total external service provider costs
$ 6,263
$ 5,224
$ 15,995
$ 17,443
General and administrative expenses were $2.9 million
for the three months ended June 30, 2024, as compared to $3.2 million for the same quarter of fiscal 2023. General and administrative
expenses were $8.3 million for the nine months ended June 30, 2024, as compared to $9.4 million for the same period of fiscal 2023. The
primary reason for the decrease in general and administrative expenses was a reduction in stock-based compensation charges of $0.5 million
for the three month period and $1.5 million for the nine month period, as a result of the vesting of previous option awards and the extended
timeline of milestone based vesting awards.
34
We expect to see our research and development expenditures
increase from current levels as we advance our clinical programs, including advancement of ANAVEX ® 3-71 trial in Schizophrenia,
preparation of our MAA submission to the EMA, planned advancement of ANAVEX ® 2-73 for Parkinson’s disease, planned
initiation of an ANAVEX ® 2-73 for a Fragile X clinical trial, and as we continue to add additional staffing to manage and
support these clinical initiatives.
Other income (net)
The net amount of other income for the three months
ended June 30, 2024 was $2.4 million as compared to $2.3 million for the comparable three months ended June 30, 2023. The net amount of
other income for the nine months ended June 30, 2024 was $7.3 million as compared to $5.8 million for the comparable nine month period
ended June 30, 2023. The increase in other income for the year-to-date period is primarily related to a one-time financing charge of $0.9
million recognized in the comparable nine-month periods associated with entering into the 2023 Purchase Agreement (as described below),
and an increase in interest income associated with an increase in interest rates.
Net loss
Net loss for the three months ended June 30, 2024,
was $12.2 million, or $0.14 per share, as compared to $11.3 million, or $0.14 per share in the comparative quarter of fiscal 2023. The
net loss for the nine months ended June 30, 2024 was $31.4 million, or $0.38 per share, as compared to $37.4 million, or $0.47 per share
in the comparative nine month period. The decrease in net loss for the year-to-date period is primarily related to a decrease in research
and development expenditures and an increase in other income, as discussed above.
Liquidity and Capital Resources
Working Capital (in thousands)
June 30,
2024
September 30, 2023
Current Assets
$
141,535
$
154,386
Current Liabilities
11,754
12,534
Working Capital
$
129,781
$
141,852
On June 30, 2024, we had net current assets of $141.5
million, a decrease of approximately $12.9 million from our year ended September 30, 2023. The decrease in net current assets primarily
relates to cash utilized in operations, partially offset by $11.9 million in cash generated under the 2023 Purchase Agreement.
During the first nine months of fiscal 2024, we utilized
cash and cash equivalents of $24.2 million to fund our operations, compared to $21.9 million during the same period of fiscal 2023. Our
cash position was $138.8 million on June 30, 2024 compared to $151.0 million at our fiscal year ended September 30, 2023.
We intend to
continue to use our capital resources to advance our clinical trials for ANAVEX ® 2-73 and ANAVEX ® 3-71, and
to perform the work necessary to prepare for future development of our pipeline compounds.
Cash Flows
The following
table summarizes cash flows during the nine months ended June 30, 2024 and 2023 (in thousands):
2024
2023
Net
cash flows used in operating activities
$ (24,154 )
$ (21,936 )
Net
cash flows from financing activities
11,886
27,595
Increase/
(decrease) in cash and cash equivalents
$ (12,268 )
$ 5,65 9
35
Cash flow used in operating activities
Net cash used in operating activities for the nine
months ended June 30, 2024 was $24.2 million, compared to $21.9 million during the comparable period ended June 30, 2023. The principal
reason for this is an increase in net cash expenses, after taking into account non-cash stock-based compensation, over the comparable
period of approximately $0.7 million, as well as positive changes in other working capital accounts in the current nine-month period,
as compared to the comparable nine-month period.
Cash flow provided by financing activities
Cash provided by financing activities for the nine-month
period ended June 30, 2024 was $11.9 million, compared to $27.6 million during the comparable nine-month period ended June 30, 2023. Cash
provided by financing activities in both periods is primarily attributable to cash received from the issuance of common shares at various
market prices under the 2023 Purchase Agreement.
Other Financings
2023 Purchase Agreement
On February 3, 2023, the Company entered into a $150,000,000
purchase agreement (the “2023 Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant
to which the Company has the right to sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $150.0 million
in value of its shares of Common Stock from time to time over a three-year period until February 3, 2026.
On any business day and subject to certain customary
conditions, the Company may direct Lincoln Park to purchase up to 200,000 shares of Common Stock (such purchases, “Regular Purchases”).
The amount of a Regular Purchase may increase under certain circumstances based on the market price of the Common Stock; provided, however,
that Lincoln Park’s committed obligation under any Regular Purchase shall not exceed $4.0 million. The purchase price of shares
of Common Stock will be based on the then prevailing market prices of such shares at the time of sales as described in the 2023 Purchase
Agreement. There are no limits on the price per share that Lincoln Park may pay to purchase Common Stock under the 2023 Purchase Agreement.
In addition, if the Company has directed Lincoln Park to purchase the full amount of Common Stock available as a Regular Purchase on a
given day, it may direct Lincoln Park to purchase additional amounts as “accelerated purchases” and “additional accelerated
purchases,” each as set forth in the 2023 Purchase Agreement.
The 2023 Purchase Agreement limits the Company’s
sale of shares of Common Stock to Lincoln Park to 15,606,426 shares of Common Stock, representing 19.99% of the shares of the Common Stock
outstanding on the date of the 2023 Purchase Agreement unless (i) stockholder approval is obtained to issue more than such amount or (ii)
the average price of all applicable sales of Common Stock to Lincoln Park under the 2023 Purchase Agreement equals or exceeds the lower
of (A) the closing price of the Common Stock on the Nasdaq Capital Market immediately preceding the Execution Date or (B) the average
of the closing price of the Common Stock on the Nasdaq Capital Market for the five Business Days immediately preceding the Execution Date.
The 2023 Purchase Agreement also prohibits the Company
from directing Lincoln Park to purchase any shares of Common Stock if those shares, when aggregated with all other shares of Common Stock
then beneficially owned by Lincoln Park and its affiliates, would result in Lincoln Park and its affiliates having beneficial ownership,
at any single point in time, of more than 4.99% of the then total outstanding shares of Common Stock, as calculated pursuant to Section
13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 thereunder.
In consideration for entering into the 2023 Purchase
Agreement, the Company issued to Lincoln Park 75,000 shares of Common Stock as a commitment fee (the “initial commitment shares”)
during the year ended September 30, 2023 and agreed to issue up to 75,000 shares pro rata (collectively with the initial commitment shares,
the “commitment shares”), when and if, Lincoln Park purchased, at the Company’s discretion, the $150.0 million aggregate
commitment.
36
During the nine-month period ended June 30, 2024,
the Company issued to Lincoln Park an aggregate of 2,455,646 shares of Common Stock under the 2023 Purchase Agreement, including 2,450,000
shares of Common Stock for an aggregate purchase price of $11.3 million and 5,646 commitment shares. During the nine-month period ended
June 30, 2023, the Company issued to Lincoln Park an aggregate of 3,138,348 shares of Common Stock under the 2023 Purchase Agreement,
including 3,125,000 shares of Common Stock for an aggregate purchase price of $26.7 million and 13,348 commitment shares as well as the
75,000 initial commitment shares.
On June 30, 2024, an amount of $110.8 million remained
available under the 2023 Purchase Agreement.
Controlled Equity Offering Sales Agreement
On May 1, 2020, we entered into an Amended and Restated
Sales Agreement (the “2020 Sales Agreement”) with Cantor Fitzgerald & Co. and SVB Leerink LLC (the “Sales Agents”),
pursuant to which we could offer and sell shares of Common Stock registered under an effective registration statement from time to time
through the Sales Agents (the “At-the-Market Offering”).
Upon delivery of a placement notice based on our instructions
and subject to the terms and conditions of the 2020 Sales Agreement, the Sales Agents could sell shares of Common Stock by methods deemed
to be an “at the market offering”, in negotiated transactions at market prices prevailing at the time of sale or at prices
related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to our prior
written consent. We were not obligated to make any sales of shares under the 2020 Sales Agreement. We or the Sales Agents could suspend
or terminate the At-the-Market Offering upon notice to the other party, subject to certain conditions. The Sales Agents would act as agents
on a commercially reasonable efforts basis consistent with their normal trading and sales practices, applicable state and federal law,
and rules and regulations and the rules of Nasdaq.
We agreed to pay the Sales Agents’ commissions
for their services of 3.0% of the gross proceeds from the sale of shares of Common Stock pursuant to the 2020 Sales Agreement. We also
agreed to provide the Sales Agents with customary indemnification and contribution rights.
No shares were sold during the nine months ended June
30, 2024 and 2023 under the 2020 Sales Agreement. The Company terminated the 2020 Sales Agreement on July 24, 2024.
Off-Balance Sheet Arrangements
We have no off-balance sheet
arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
CRITICAL ACCOUNTING POLICIES
We prepare our condensed
consolidated interim financial statements in accordance with accounting principles generally accepted in the United States of America
and make estimates and assumptions that affect our reported amounts of assets, liabilities, revenue and expenses, and the related disclosures
of contingent liabilities. We base our estimates on historical experience and other assumptions that we believe are reasonable in the
circumstances. Actual results may differ from these estimates.
There have been no significant
changes in the critical accounting policies and estimates described in our Annual Report on Form 10-K for the year ended September 30,
2023, as filed with the SEC on November 27, 2023.
RECENT ACCOUNTING PRONOUNCEMENTS
Please refer to Note 2 “Recent
Accounting Pronouncements” in notes to our Condensed Consolidated Interim Financial Statements included in this Form 10-Q.
37
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS.
There have been no material
changes in our exposure to market risk from that disclosed in Item 7A of our Annual Report on Form 10-K for the year ended September 30,
2023.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.