Axsome Therapeutics downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Axsome Therapeutics (AXSM) to Equal Weight from Overweight with a price target of $204, up from $196. Axsome announced on December 31 that the FDA accepted the AXS-05 sNDA for Alzheimer’s Disease Agitation with Priority Review, immediately driving a sharp stock reaction, notes the analyst, who increased the firm’s view of the probability of success for AXS05 in ADA to 85% from 75%. However, the post-event run-up has meaningfully reduced near-term upside from current levels, says the analyst, who views 2026 as “relatively catalyst-light” outside of the April-end PDUFA date for AXS-05 in ADA.