Key Stats for Axsome Therapeutics Stock
- Price change for Axsome Therapeutics stock: 8%
- $AXSM Share Price as of May. 5: $223
- 52-Week High: $234
- $AXSM Stock Price Target: $238
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What Happened?
Axsome Therapeutics (AXSM) stock initially fell on Monday but later recovered after the company reported a larger-than-expected quarterly loss.
- The adjusted loss came in at $1.26 per share, well above the consensus estimate of $0.86.
- That’s a 48% miss on the bottom line.
- A year ago, the loss was just $0.80 per share, so costs are clearly growing faster than expected.
The reason isn’t hard to find. Axsome is in heavy investment mode right now.
- Sales and marketing expenses jumped sharply in the quarter, driven by a national advertising campaign for its flagship drug, Auvelity, a major sales force expansion, and prelaunch spending ahead of approval for a new indication in Alzheimer’s disease agitation.
- The company also picked up a one-time R&D charge related to a recent pipeline acquisition.
On the revenue side, Axsome Therapeutics stock had more to cheer about.
- Total revenue hit $191.2 million, up 57% from a year ago and slightly ahead of estimates.
- Auvelity alone brought in $153 million, up 59% year over year.
- Sunosi contributed $34 million.
- The newer drug SYMBRAVO added $4 million in its early launch phase.
The FDA approved Auvelity for Alzheimer’s disease agitation just last week, which management called a major milestone.
The company has now set a peak sales target of at least $8 billion annually for Auvelity across its two approved indications — roughly split evenly between depression and Alzheimer’s agitation.
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What the Market Is Telling Us About Axsome Therapeutics Stock
Axsome Therapeutics stock has actually outperformed the broader market this year, up about 13% versus the S&P 500’s smaller gain.
The loss was significant. Over the past four quarters, Axsome has only beaten earnings estimates once. That’s a pattern that makes investors nervous, but the company’s product potential is definitely better.
Looking ahead, analysts expect a loss of $0.45 per share on $222 million in revenue next quarter. The full-year estimate sits at a loss of $1.06 per share on roughly $985 million in revenue.
Management said the company expects to achieve cash flow positivity under its current plan, with $305 million in cash on hand at quarter-end.
The Alzheimer’s agitation launch scheduled for June is the next big catalyst for Axsome Therapeutics stock.
How quickly that ramp translates into revenue will go a long way toward answering whether today’s spending is justified.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
