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Axsome Therapeutics Inc. (AXSM)
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Axsome Therapeutics (AXSM) AI Stock Analysis

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AXSM

Axsome Therapeutics

(NASDAQ:AXSM)

Rating:58Neutral
Price Target:
$116.00
▼(-4.35% Downside)
Axsome Therapeutics shows strong revenue growth and positive technical indicators, but faces significant profitability challenges and valuation concerns. The earnings call provided a positive outlook, yet corporate events present mixed implications for future performance.
Positive Factors
Earnings
Analyst projects a significant increase in Auvelity's net product sales for the second quarter.
Market Performance
Auvelity continues to ramp nicely and respond to the increased sales force.
Product Rollout
SYMBRAVO's rollout is progressing with a field force of about 100 representatives and has secured a contract with one of the three largest group purchasing organizations for potential formulary coverage.
Negative Factors
Growth Expectations
Symbravo, AXSM's new migraine drug, is expected to have slow but steady and sustained growth.
Payer Coverage
Payer coverage for SYMBRAVO is currently at approximately 38% of all lives covered, indicating room for improvement.
Prescription Trends
Auvelity prescriptions experienced a slight decline for the third consecutive week, with a 1% decrease in total and new prescriptions.

Axsome Therapeutics (AXSM) vs. SPDR S&P 500 ETF (SPY)

Axsome Therapeutics Business Overview & Revenue Model

Company DescriptionAxsome Therapeutics (AXSM) is a clinical-stage biopharmaceutical company focused on developing novel therapies for the management of central nervous system (CNS) disorders. The company's primary areas of interest include depression, pain, and addiction, with a robust pipeline of candidates aimed at addressing significant unmet medical needs. Axsome's lead product, AXS-05, is a multimodal investigational drug for the treatment of major depressive disorder and other indications, while AXS-07 is designed for the acute treatment of migraine. Through its innovative approach to drug development, Axsome aims to improve the quality of life for patients with complex CNS conditions.
How the Company Makes MoneyAxsome Therapeutics generates revenue primarily through the commercialization of its pharmaceutical products. The company has received regulatory approvals for its lead product, AXS-05, which contributes to its revenue through sales in the market. Additionally, Axsome may engage in strategic partnerships and collaborations with larger pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties on sales of partnered products. Research grants and government funding for clinical trials may also serve as supplementary revenue sources. As the company advances its pipeline and achieves regulatory milestones, it aims to enhance its revenue streams through the introduction of additional products to the market.

Axsome Therapeutics Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant revenue growth and successful product launches. However, the substantial net loss and challenges in market access for SYMBRAVO present areas for concern.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
Axsome delivered total revenue of $150 million for the quarter, representing a 72% increase year-over-year and a 24% increase quarter-over-quarter.
Successful Product Launch
The company successfully launched SYMBRAVO, generating $410,000 in net sales within just a few weeks of launch.
Strong Performance of Existing Products
Auvelity and Sunosi showed impressive growth, with Auvelity's net product sales up 84% year-over-year and Sunosi's net product revenues up 35% year-over-year.
Pipeline Progress
Progress on late-stage development programs with multiple NDA submissions planned for the fourth quarter, including AXS-05 for Alzheimer's disease agitation and AXS-12 for narcolepsy.
Expansion in Market Access
Auvelity coverage increased to 83% of lives across all channels, with significant new covered lives added in the commercial channel.
Negative Updates
High Net Loss
The company reported a net loss of $48 million for the quarter, although this was an improvement from previous periods.
High Gross to Net Discounts
Auvelity and Sunosi gross to net discounts were both in the mid-50% range, with SYMBRAVO gross to net for the quarter in the low 80% range.
Challenges in Migraine Market Access
Current coverage for SYMBRAVO stands at approximately 38% of lives across all channels, indicating room for improvement.
Company Guidance
During the second quarter of 2025, Axsome Therapeutics reported significant metrics highlighting robust growth across its commercial and development sectors. The company achieved total revenues of $150 million, marking a substantial 72% increase year-over-year and 24% growth quarter-over-quarter. Key drivers were the impressive performances of Auvelity and Sunosi, with Auvelity generating $119.6 million in net sales, up 84% from the previous year, and Sunosi contributing $30 million, a 35% year-over-year increase. The newly launched SYMBRAVO, marketed for migraine treatment, generated net sales of $410,000 in its partial launch quarter. Axsome's gross-to-net discounts for Auvelity and Sunosi were in the mid-50% range, while SYMBRAVO's gross-to-net was in the low 80% range. The company also reported a net loss of $48 million, or $0.97 per share, including $24.6 million in stock-based compensation expenses. Axsome ended the quarter with $303 million in cash and cash equivalents, suggesting a solid financial foundation for future growth and operational expansion.

Axsome Therapeutics Financial Statement Overview

Summary
Axsome Therapeutics shows strong revenue growth but faces significant profitability and leverage challenges, with negative margins and high debt levels. Cash flow management shows slight improvement but remains an area of concern.
Income Statement
45
Neutral
Axsome Therapeutics shows strong revenue growth with a 14.55% increase in TTM, indicating positive momentum. However, profitability remains a concern with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is high at 91.48%, suggesting efficient cost management, but the company needs to improve its bottom line to enhance financial health.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 2.95, indicating significant leverage which could pose financial risks. The negative return on equity (-357.58%) highlights profitability issues. Despite these challenges, the equity ratio stands at 11.42%, showing some level of asset backing, but overall financial stability needs improvement.
Cash Flow
50
Neutral
Cash flow analysis shows a slight improvement in free cash flow growth at 1.91%, but the company still faces negative operating cash flow, indicating cash management challenges. The free cash flow to net income ratio is nearly 1, suggesting that cash flow is closely aligned with reported earnings, but the negative operating cash flow coverage ratio (-0.35) is a concern.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue495.03M385.69M270.60M50.04M0.000.00
Gross Profit452.85M352.39M244.53M44.84M-1.16M-77.72K
EBITDA-224.80M-272.60M-224.99M-174.23M-123.55M-99.06M
Net Income-246.90M-287.22M-239.24M-197.77M-134.94M-105.39M
Balance Sheet
Total Assets639.78M568.50M588.24M331.48M-338.36M186.13M
Cash, Cash Equivalents and Short-Term Investments303.02M315.35M386.19M200.84M86.47M183.88M
Total Debt215.29M192.96M186.37M94.68M49.71M50.12M
Total Liabilities566.71M511.48M397.26M221.92M70.84M72.34M
Stockholders Equity73.08M57.02M190.98M109.56M-409.20M-278.80M
Cash Flow
Free Cash Flow-120.51M-128.68M-145.66M-117.21M-108.53M-78.50M
Operating Cash Flow-120.63M-128.41M-145.08M-116.51M-108.23M-78.46M
Investing Cash Flow-471.00K-270.00K-582.00K-53.70M-307.55K-45.89K
Financing Cash Flow108.46M57.84M331.01M284.58M11.13M42.41M

Axsome Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price121.28
Price Trends
50DMA
108.12
Positive
100DMA
107.24
Positive
200DMA
106.94
Positive
Market Momentum
MACD
4.19
Negative
RSI
70.77
Negative
STOCH
86.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXSM, the sentiment is Positive. The current price of 121.28 is above the 20-day moving average (MA) of 111.82, above the 50-day MA of 108.12, and above the 200-day MA of 106.94, indicating a bullish trend. The MACD of 4.19 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 86.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXSM.

Axsome Therapeutics Risk Analysis

Axsome Therapeutics disclosed 72 risk factors in its most recent earnings report. Axsome Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Axsome Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$4.27B30.0515.61%116.09%35.29%
68
Neutral
$9.11B-36.38%34.29%
58
Neutral
$6.05B-280.68%69.83%22.16%
51
Neutral
$7.86B-0.26-41.41%2.22%22.87%-2.01%
50
Neutral
99.19%48.43%
49
Neutral
$1.78B19.61-4.76%64.89%-221.56%
47
Neutral
$4.23B435.49%2635.74%4.66%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AXSM
Axsome Therapeutics
121.28
31.63
35.28%
CYTK
Cytokinetics
35.33
-19.23
-35.25%
SRPT
Sarepta Therapeutics
18.20
-116.90
-86.53%
BPMC
Blueprint Medicines
129.46
36.93
39.91%
VRNA
Verona Pharma
105.91
78.70
289.23%
KRYS
Krystal Biotech
147.70
-39.08
-20.92%

Axsome Therapeutics Corporate Events

Legal ProceedingsRegulatory Filings and Compliance
Axsome Therapeutics Receives Paragraph IV Certification Notice
Negative
Aug 20, 2025

On August 19, 2025, Axsome Therapeutics received a Paragraph IV Certification Notice from Apotex, indicating that Apotex has filed an ANDA with the FDA to produce a generic version of Axsome’s Symbravo®. Axsome plans to respond to this notice, which could impact its market position and stakeholder interests.

Product-Related AnnouncementsFinancial Disclosures
Axsome Therapeutics Reports Strong Q2 2025 Performance
Positive
Aug 4, 2025

On August 4, 2025, Axsome Therapeutics reported a significant financial performance for the second quarter of 2025, with a 72% year-over-year increase in net product revenue, reaching $150 million. The company highlighted the successful launch of SYMBRAVO for migraines and the strong sales growth of AUVELITY and SUNOSI. Axsome is progressing with regulatory submissions for AXS-05 and AXS-12, aiming to expand its product pipeline addressing serious psychiatric and neurological conditions. The company also reported a reduced net loss compared to the previous year, indicating improved financial health.

Product-Related Announcements
Axsome Therapeutics Launches SYMBRAVO for Migraine Relief
Positive
Jun 10, 2025

On June 10, 2025, Axsome Therapeutics announced the commercial availability of SYMBRAVO®, a novel treatment for acute migraine with or without aura in adults. SYMBRAVO offers a multi-mechanistic approach, providing rapid and sustained pain relief, and is supported by comprehensive patient services. This launch addresses a significant unmet need in migraine treatment, potentially benefiting millions of individuals dissatisfied with existing options.

Shareholder MeetingsBusiness Operations and Strategy
Axsome Therapeutics Shareholders Approve Key Proposals at Meeting
Positive
Jun 9, 2025

At the 2025 Annual Meeting of Stockholders held on June 6, Axsome Therapeutics presented four proposals, all of which were approved by the shareholders. These included the election of a Class I director, approval of the 2025 Long-Term Incentive Plan, ratification of Deloitte & Touche LLP as the independent auditor for 2025, and a non-binding advisory vote on executive compensation. The approval of these proposals reflects strong shareholder support and positions the company for continued strategic growth and governance stability.

Product-Related AnnouncementsRegulatory Filings and Compliance
FDA Refuses Axsome’s NDA for Fibromyalgia Drug
Negative
Jun 9, 2025

On June 9, 2025, Axsome Therapeutics announced that the FDA issued a Refusal to File letter for its NDA for AXS-14, a drug intended for fibromyalgia management. The FDA found one of the trials inadequate due to its design, prompting Axsome to plan an additional trial in late 2025 to meet FDA requirements, reflecting the company’s commitment to addressing unmet needs in fibromyalgia treatment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025