Anavex Life Sciences swung from a quarterly loss to a $7.8 million profit in its fiscal third quarter of 2026, but the improvement was driven primarily by reversals of previously recognized stock-based compensation expense associated with employee terminations.
General and administrative expenses were reported as a $2 million recovery compared with $4.5 million of expense a year earlier. The change primarily reflected a $7.5 million reversal of stock-based compensation expense associated with terminated employees, principally the company’s former chief executive officer.
Research and development expenses were also reported as a recovery, at $4.7 million, compared with $10 million of expense in the prior-year quarter. Anavex said the change primarily reflected a $9.9 million reversal of stock-based compensation expense tied to employee terminations.
Together, the two stock-compensation reversals totaled approximately $17.4 million. Net income reached $7.8 million, or $0.08 per share, compared with a net loss of $13.2 million, or $0.16 per share, a year earlier.
Anavex ended June with $118.3 million of cash and cash equivalents, up from $102.6 million at the end of fiscal 2025. Management expects its current cash balance to fund operations into the middle to latter part of fiscal 2028.
Operationally, the company’s near-term focus remains blarcamesine across Alzheimer’s disease, Rett syndrome and Fragile X syndrome. Anavex has submitted its completed Alzheimer’s clinical data to a newly opened U.S. IND and plans discussions with the FDA regarding a Phase 3 protocol. It also submitted a formal FDA meeting request regarding pediatric inclusion in a Rett Phase 3 study and expects a Fragile X IND submission in September.
KEY QUOTE:
“We are taking a methodical, financially disciplined, stepwise approach to advance each of our programs along an FDA-aligned regulatory and clinical path.”
Terrie Kellmeyer, Ph.D., Interim Chief Executive Officer of Anavex Life Sciences
