On Monday, TD Cowen expressed continued confidence in Axsome Therapeutics (NASDAQ:AXSM) shares, maintaining a Buy rating and a $120.00 price target for the biopharmaceutical company's stock. The firm's positive stance comes after an investor dinner with Axsome's management, where the company's progress on key pharmaceutical trials was discussed.
Axsome Therapeutics is on track with its Phase III trials for AXS-05, a treatment for Alzheimer's agitation, with results expected in the second half of the year. Moreover, the company is preparing to release Phase III data for solriamfetol, aimed at treating adult ADHD. These developments are part of Axsome's broader strategy to strengthen its product portfolio.
The company's commercial strategy is also gaining momentum with the expansion of sales for Auvelity, a treatment for Major Depressive Disorder (MDD). This is expected to be bolstered by new contracts that will support the product's market launch.
Axsome is advancing other products in its pipeline, including AXS-07, AXS-12, and AXS-14, toward commercial availability. The progress of these products is a key component of Axsome's strategy to establish a strong presence in the market for neurological and psychiatric treatments.
The analyst from TD Cowen highlighted these updates as indicators of Axsome's commitment to bringing new treatments to market and the potential growth of its commercial sales. The reiterated Buy rating and price target reflect the firm's confidence in the company's trajectory and its ability to meet significant milestones in the near future.
In other recent news, Axsome Therapeutics has seen significant developments regarding its migraine treatment drug, AXS-07. The U.S. Food and Drug Administration has accepted for review Axsome's resubmission of its New Drug Application for AXS-07, with a decision expected by January 31, 2025. H.C. Wainwright maintains a Buy rating on Axsome, projecting that the drug could generate sales of approximately $79 million in 2025.
Mizuho Securities has reaffirmed an Outperform rating on Axsome, emphasizing the company's ability to protect its products, Auvelity and Sunosi, against generic competitors. BofA Securities upgraded Axsome from Neutral to Buy, while Wells Fargo (NYSE:WFC) initiated coverage with an Overweight rating.
Moreover, Axsome's product for major depressive disorder, Auvelity, has reported approximately $254 million in sales since its launch, aligning with industry expectations. Morgan Stanley (NYSE:MS) maintained an Overweight rating on Axsome shares, emphasizing the successful commercial progression of Auvelity. These are the recent developments in Axsome's journey.
InvestingPro Insights
As Axsome Therapeutics (NASDAQ:AXSM) continues to make strides in its clinical trials and commercial strategy, recent data from InvestingPro underscores some key financial metrics and market performance. The company boasts a substantial gross profit margin of 90.3% for the last twelve months as of Q2 2024, indicating strong profitability potential from its sales. This aligns with the progress of Axsome's product portfolio and supports the positive outlook from TD Cowen.
InvestingPro Tips highlight that Axsome operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing the company with financial flexibility. Moreover, the stock has shown a strong return over the last three months, with a price total return of 27.22%, demonstrating investor confidence in the company's growth prospects. It is also notable that Axsome's stock is trading near its 52-week high, at 95.19% of this peak value, reflecting the market's optimism about its future.
For those seeking a deeper analysis, InvestingPro offers a wealth of additional tips, including insights into Axsome's valuation multiples and earnings revisions by analysts. Interested readers can find more detailed InvestingPro Tips for Axsome at https://www.investing.com/pro/AXSM.
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