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By Kate George

Many investors hope to win big on biotech stocks as shares can sky rocket when there is good news. Analysts explain why there are plenty of promising developments in store for Cytokinetics, Inc.(NASDAQ:CYTK) and Anavex Life Sciences Corp. (NASDAQ:AVXL). Let's take a closer look.

Cytokinetics, Inc.

Analyst Joseph Pantginis of Roth Capital weighed in on Cytokinetics after the biotech company posted earnings on Tuesday. The analyst explains that the company posted an EPS of ($0.97), a narrower loss than his estimate of ($1.02). The company also announced that it is increasing its investment in the Phase III study of VITALITY-ALS, which tests pipeline drug tirasemtiv to treat ALS, by increasing enrollment from 445 patients to 600 patients.

Pantginis is pleased that the company is "firing on all cylinders" with this trial. He explains, "An important takeaway from the increased enrollment in VITALITY-ALS is that projected timelines remain unchanged, which we attribute to the underlying demand to enter the study. Full enrollment is expected in 1H16 with top-line data in 3Q17."

The analyst also points to omecamtiv mecarbil, a pipeline drug for heart failure, as a key catalyst for Cytokinetics. Pantginis explains that the drug is being developed in collaboration with Amgen. He comments, "Regarding omecamtiv, CYTK and AMGN how have ongoing end-of-Phase II discussions with the FDA, EMA, and other regulatory authorities to agree on a Phase III protocol for heart failure… CYTK/AMGN project that the decision to start the Phase III will occur in the next few months."

In light of these developments and earnings, Pantginis reiterated a Buy rating on the company with a $22 price target on February 16. According to TipRanks, two other analysts are also bullish on the company.

Anavex Life Sciences Corp.

After Anavex announced preclinical data on 2-73, Jason Kolbert of Maxim Group weighed in on the company. Anavex 2-73 is a pre-clinical pipeline drug for Alzheimer's disease, and recent data shows that it may be explored for multiple sclerosis too.

Kolbert explains, "The phase IIa data continues to show signs of early efficacy in Alzheimer's disease. Data from the first 32 patients with mild to moderate Alzheimer's disease receiving 2-73 in the ongoing Phase IIa trial showed that improvement across multiple metrics from Cogstate battery, Mini Mental State Examination (MMSE), event related potentials (EEG/ERP), and P300 tests, all which consistently demonstrated improvements from baseline in the completed Part A portion of the study."

Furthermore, the company announced it is moving forward developing 2-73 pursuant with guidance received from the FDA. In light of these developments, Kolbert reiterated a Buy rating on the stock with a $15 price target on February 17. According to TipRanks, Kolbert is the only analyst to rate this stock.

Latest Ratings for CYTK

Jul 2016NeedhamMaintainsBuy
Mar 2016JMP SecuritiesMaintainsMarket Outperform
Jul 2015Cowen & Co.Initiates Coverage onOutperform

View More Analyst Ratings for CYTK
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The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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