Axsome selloff on study miss should be ‘contained,’ says Mizuho

Mizuho says that in a “relative disappointment,” the results from Axsome Therapeutics (AXSM)’ Phase 3 PARADIGM study data for solriamfetol in the setting of major depressive disorder were negative. However, greater improvement in depressive symptoms was seen in a subgroup of patients with severe excessive daytime sleepiness, the analyst tells investors in a research note. Given the “very low expectations,” Mizuho expects stock weakness on today’s negative study result to be “relatively contained.” The firm still believes Axsome represents one of the best growth stories in the sector, and it recommends “being opportunistic on any continued weakness.” It keeps an Outperform rating on the name with a $216 price target The stock in midday trading is down 5% to $110.74.