Small-cap stocks with promising growth prospects can have substantial upside. But they often come with risks, as their modest valuations also suggest that they are relatively unproven businesses.

One stock that investors and analysts are incredibly bullish on these days is Anavex Life Sciences (NASDAQ: AVXL), which has a market capitalization of just $730 million. Here's a look at why there is excitement behind the company and whether this ix an investment you should consider adding to your portfolio.

Key to Anavex's success will be centered around Anavex 2-73 (blarcamesine), which has been showing promise as a potential treatment for Alzheimer's in late-stage trials, with the next step being for the healthcare company to discuss the results with regulators and health officials. The treatment has also been studied as an option for people with Rett syndrome (a neurodevelopmental disorder) and Parkinson's disease dementia.

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Source Fool.com