On Friday, Morgan Stanley (NYSE:MS) reaffirmed its positive stance on shares of Axsome Therapeutics (NASDAQ:AXSM) with an Overweight rating and a $115.00 price target. The investment firm's analysis highlighted the successful commercial progression of Auvelity, Axsome's treatment for major depressive disorder (MDD).
Approved in August 2022, Auvelity hit the market in October of the same year and has since reported approximately $65 million in sales for the second quarter of 2024.
Since its launch, which spans the initial seven quarters from the fourth quarter of 2022 through the second quarter of 2024, Auvelity has achieved roughly $254 million in sales. These figures suggest a robust market uptake for the treatment. The current consensus among Visible Alpha analysts estimates Axsome's sales for 2024 at around $280 million, with projections indicating a potential increase to over $1 billion by 2027.
The company's performance with Auvelity appears to align with industry expectations, positioning Axsome Therapeutics positively in the market. Morgan Stanley's target reflects confidence in the continued commercial success of Auvelity and its contribution to Axsome's financial growth. The treatment's strong sales trajectory through its initial quarters provides a solid foundation for future revenue streams.
Investors and market watchers are likely to keep a close eye on Axsome's performance in upcoming quarters, as it aims to meet and surpass the projected sales figures. The company's ability to maintain momentum with Auvelity will be critical for achieving the long-term financial targets set by analysts.
InvestingPro Insights
As Axsome Therapeutics (NASDAQ:AXSM) continues to demonstrate strong commercial performance with its treatment for major depressive disorder, Auvelity, recent data from InvestingPro reinforces the positive outlook. With a gross profit margin of 90.3% over the last twelve months as of Q2 2024, the company exhibits impressive profitability on its sales. This high margin is indicative of the successful market penetration and pricing power of Auvelity, aligning with Morgan Stanley's optimistic assessment.
Moreover, Axsome's share price has experienced a notable return of 17.43% over the past three months, reflecting investor confidence in the company's growth trajectory. Despite analysts not expecting the company to be profitable this year, the stock trades with low price volatility, suggesting a level of market stability. This is an important consideration for investors who value consistency in their portfolio.
For those looking to delve deeper into Axsome's financial health and future prospects, there are additional InvestingPro Tips available, providing valuable insights into the company's operations and financial strategies. Visit https://www.investing.com/pro/AXSM to explore further.
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