Buy Rating Reaffirmed for Axsome Therapeutics Amidst Strong Q1 Earnings and Promising Clinical Trials

In a report released on May 6, Marc Goodman from Leerink Partners reiterated a Buy rating on Axsome Therapeutics (AXSM – Research Report), with a price target of $100.00.

Marc Goodman has given his Buy rating due to a combination of factors related to Axsome Therapeutics’ recent performance and future prospects. The positive earnings report for the first quarter of 2024, which surpassed expectations with Auvelity sales, played a significant role in his assessment. The strong prescription growth and better-than-anticipated Gross-to-Net (GTN) realization were key highlights. Moreover, the ongoing progress in enrolling patients for the ADVANCE-2 study and the initiation of the ACCORD-2 study, without impacting the planned filing timeline for Alzheimer’s disease agitation treatment, further bolster the company’s outlook. These elements align with the investment thesis for 2024, which anticipates continued success with Auvelity, positive Alzheimer’s agitation data, and favorable results from the Sunosi ADHD study.
Additionally, Goodman’s rating takes into account the company’s solid financial position, with sufficient cash reserves to support operations until it reaches cash flow positivity. This financial stability, coupled with Axsome’s strategic contracting with GPOs to enhance coverage and sales, and the promising pipeline of clinical trials set to conclude in the second half of 2024, solidifies the optimistic evaluation. Goodman’s outlook is also supported by the company’s sound management of R&D spend, which ensures ongoing trials do not excessively burden the financial resources, thereby maintaining a favorable cash trajectory. These factors collectively contribute to the reiteration of an Outperform rating with a price target of $100.

In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $190.00 price target.

AXSM’s price has also changed moderately for the past six months – from $62.420 to $75.940, which is a 21.66% increase.

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Axsome Therapeutics (AXSM) Company Description:

Axsome Therapeutics, Inc. is a clinical stage biopharmaceutical company, which engages in developing novel therapies for the management of central nervous system disorders. Its product candidates include AXS-02 and AXS-06 which are developing for multiple indications. The company was founded by Herriot Tabuteau on January 12, 2012 and is headquartered in New York, NY.