Strong Growth Potential and Market Penetration Drive Buy Rating for Axsome Therapeutics

Morgan Stanley analyst Vikram Purohit has maintained their bullish stance on AXSM stock, giving a Buy rating on June 11.

Vikram Purohit’s rating is based on the strong commercial performance and growth potential of Axsome Therapeutics’ product, Auvelity. Since its approval for treating major depressive disorder in August 2022 and its commercial availability in October 2022, Auvelity has shown promising sales trends. The drug’s prescriptions have been increasing steadily, with a notable rise in both total and new prescriptions, indicating a successful market penetration.
Furthermore, the financial projections for Auvelity are optimistic, with sales expected to reach approximately $480 million by 2025 and potentially doubling to $1 billion by 2027. This growth trajectory, coupled with the drug’s ability to outperform the overall antidepressant market, supports the positive outlook for Axsome Therapeutics. These factors collectively contribute to Vikram Purohit’s decision to rate the stock as a Buy, reflecting confidence in the company’s future performance and market position.

In another report released on June 11, RBC Capital also maintained a Buy rating on the stock with a $186.00 price target.

Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AXSM in relation to earlier this year.