On Tuesday, Truist Securities expressed continued confidence in Axsome Therapeutics (NASDAQ:AXSM), maintaining a Buy rating and a price target of $150.00. The optimism stems from the strong uptake of Axsome's Auvelity drug, which is expected to gain a larger share of prescriptions, particularly from primary care physicians (PCPs). The company's recent announcement of plans to increase its sales force was highlighted as a positive move to maintain this momentum.
The analyst from Truist Securities highlighted that the previous management's sales guidance for Auvelity, which is used in the treatment of major depressive disorder (MDD), seems conservative in retrospect. The guidance had projected $1-3 billion in sales. The expansion of the sales team is seen as a strategic step to capitalize on the drug's successful market performance.
Looking ahead, the analyst noted the potential for Axsome's pipeline, particularly focusing on the upcoming Phase 3 ADVANCE-2 and ACCORD-2 trial readouts in Alzheimer's disease agitation (ADA) expected by the end of 2024. These developments are seen as key indicators of the company's risk/reward profile.
Furthermore, the analyst's commentary underscored Axsome's progress towards becoming a diversified biopharmaceutical company specializing in central nervous system (CNS) disorders. The anticipated approval of a second product, AXS-07 for the treatment of migraine, was mentioned as an additional factor reinforcing the Buy rating.
In conclusion, Truist Securities reiterated its positive stance on Axsome Therapeutics, emphasizing the company's strong commercial performance with Auvelity, strategic initiatives to drive sales, and promising pipeline developments that could further enhance its position in the CNS therapeutic area.
In other recent news, Axsome Therapeutics has been the focus of several analyst firms following significant developments in its drug pipeline. Mizuho (NYSE:MFG) Securities maintained its Outperform rating on Axsome shares, emphasizing the company's progress in pharmaceutical trials and the commercial progression of its drug, Auvelity. The firm also highlighted Axsome's ongoing Phase III trials for AXS-05, a treatment for Alzheimer's agitation, and solriamfetol, aimed at treating adult ADHD.
TD Cowen also expressed confidence in Axsome shares, maintaining a Buy rating and a $120.00 price target. This comes after an investor dinner with Axsome's management, discussing the company's progress on key pharmaceutical trials. The firm noted Axsome's commitment to bringing new treatments to market and the potential growth of its commercial sales.
Axsome Therapeutics has also amended its loan agreement with Hercules Capital (NYSE:HTGC), extending availability periods for additional tranches and providing the company with extended access to capital. This amendment raises the Tranche 3 Commitment from $75 million to $80 million.
In other recent developments, Axsome's migraine treatment drug, AXS-07, has been accepted for review by the U.S. Food and Drug Administration. Analysts from H.C. Wainwright anticipate that the drug could generate sales of approximately $79 million in 2025. The firm also maintained a Buy rating on Axsome shares.
On a related note, Myriad Genetics (NASDAQ:MYGN) reported second-quarter revenues of $211.5 million, exceeding consensus expectations, and raised its guidance for 2024 to an estimated $835-845 million. The company's main product, the MyRisk hereditary cancer panel, is expected to account for approximately 44% of the company's sales for 2023.
InvestingPro Insights
Axsome Therapeutics' (NASDAQ:AXSM) impressive market performance aligns with several key metrics from InvestingPro. The company's revenue growth of 59.73% over the last twelve months and a remarkable 86.65% in the most recent quarter underscore the strong uptake of Auvelity mentioned in the article. This growth trajectory supports Truist Securities' optimistic outlook on the company's commercial performance.
InvestingPro Tips highlight Axsome's "impressive gross profit margins," which is reflected in the data showing a gross profit margin of 90.3% for the last twelve months. This robust profitability at the product level could provide the financial flexibility needed to support the planned expansion of the sales force for Auvelity.
Additionally, the InvestingPro Tip noting that Axsome is "trading near 52-week high" aligns with the market's positive reception of the company's progress. The stock's price is currently at 94.42% of its 52-week high, indicating strong investor confidence in Axsome's strategy and potential.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Axsome Therapeutics, providing a deeper understanding of the company's financial health and market position.
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