On Monday, Mizuho Securities sustained its positive outlook on Axsome Therapeutics (NASDAQ:AXSM) shares, reiterating an Outperform rating and maintaining a $106.00 price target for the company's stock. The endorsement follows the most recent prescription data for Axsome's Auvelity, which showed a significant increase in new and total prescriptions.
For the week ending Friday, the number of new prescriptions (NRxs) for Auvelity rose to 6,125, marking a 20% increase week-over-week. Total prescriptions (TRxs) also saw an uptick, climbing to 10,387, which is a 16% rise from the previous week's figures. This growth is observed in the 100th week since the launch of Auvelity, indicating a robust performance for the drug.
The previous week's data had shown 5,083 new prescriptions and a total of 8,936 prescriptions for Auvelity, highlighting the continued momentum in the drug's uptake. This performance is notable amidst the absence of data from Bloomberg Symphony. The financial community is currently unable to access Symphony's data due to a block requested by a data supplier, leading to a suspension of all Symphony products and services until further notice.
Mizuho's continued support for Axsome's stock is based on the latest available prescription data, which suggests a growing acceptance and usage of Auvelity. The firm's Outperform rating and price target of $106.00 remain unchanged, reflecting confidence in the drug's market performance and Axsome's overall prospects.
In other recent news, Axsome Therapeutics has made significant strides in its drug development pipeline. The U.S. Food and Drug Administration has accepted for review Axsome's resubmission of its New Drug Application for AXS-07, a treatment for acute migraines. A decision is expected by January 31, 2025. Analysts from H.C. Wainwright, maintaining a Buy rating on Axsome, anticipate that the drug could generate sales of approximately $79 million in 2025.
TD Cowen has also maintained a Buy rating on Axsome shares, expressing confidence in the company's progress on key pharmaceutical trials including Phase III trials for AXS-05, a treatment for Alzheimer's agitation. The company's commercial strategy is gaining momentum with the expansion of sales for Auvelity, a treatment for Major Depressive Disorder, which has reported approximately $254 million in sales since its launch.
Moreover, several firms including Mizuho Securities, BofA Securities, and Wells Fargo have expressed positive outlooks on Axsome. These firms emphasized the company's ability to protect its products, Auvelity and Sunosi, against generic competitors and highlighted the potential of the company's drug for Alzheimer's disease agitation, AXS-05. These are all recent developments in Axsome's journey.
InvestingPro Insights
Amid Mizuho Securities' reaffirmed confidence in Axsome Therapeutics, recent data from InvestingPro provides additional context for investors considering the company's stock. Axsome's impressive gross profit margin stands out, with a reported 90.3% for the last twelve months as of Q2 2024, underscoring the efficiency of its operations.
Despite the challenges of not being profitable over the last year and analysts not expecting profitability this year, the company's liquid assets surpass short-term obligations, which may provide some financial stability in the near term.
InvestingPro data further reveals that Axsome's stock has experienced a high return over the last three months, with a 25.46% price total return, aligning with the positive trends observed in Auvelity prescriptions. Additionally, the company's market cap sits at $4.6 billion, reflecting a substantial size in its market segment. While the stock trades at a high Price/Book multiple of 44.73, indicating a premium against its book value, it's also trading near its 52-week high, with the price at 97.4% of the peak.
For those seeking further guidance, InvestingPro offers additional tips for Axsm, including insights on stock volatility, debt levels, and long-term returns. There are 12 more InvestingPro Tips available that can help investors make more informed decisions about Axsome Therapeutics, accessible at https://www.investing.com/pro/AXSM.
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