Why Are Investors Piling Into These Stocks?

Anavex Life Sciences Corp. (NASDAQ:AVXL) shares are up by 11.6% as investors become more optimistic on the company’s prospects. Anavex Life Sciences Corp. (NASDAQ:AVXL) is a a clinical-stage biotech company that develops drug candidates to treat Alzheimer’s disease, other central nervous system (CNS) diseases, various types of cancer, and pain. Anavex’s lead drug candidates, ANAVEX 2-73 and ANAVEX PLUS, the combination of donepezil and ANAVEX 2-73, are currently in a Phase 2a clinical trial for Alzheimer’s disease, a condition that has affected more than 25 million people.

Like Anavex Life Sciences Corp, NephroGenex Inc (NASDAQ:NRX) is also doing well today, with shares of the biotech company up more than 68% on the news that the FDA has given the green light for the company’s Investigational New Drug application for its intravenous Pyridorin (pyridoxamine dihydrochoride) drug candidate for the treatment of acute kidney injury. Acute kidney injury causes around 2 million deaths each year world-wide. Given the many quarters of additional clinical testing needed, shares of NephroGenex Inc (NASDAQ:NRX) could also be up because of short covering. Around 2.4% of the float is short and the stock isn’t exactly very liquid.

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