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On Monday, Jefferies initiated coverage on Axsome Therapeutics (NASDAQ:AXSM) with a Buy rating and a price target of $200, representing significant upside from the current price of $98.86. The firm’s analyst pointed to several potential catalysts that could drive the stock’s performance in the next couple of years. According to InvestingPro data, analyst targets range from $115 to $216, with the stock currently trading below its Fair Value estimate. Among the anticipated developments, the continued sales growth of Auvelity for Major Depressive Disorder (MDD) is expected to significantly support the company’s valuation with projections of it becoming a $1.5-2 billion product compared to its current $375 million run rate. The company’s impressive 91.37% gross profit margin and strong revenue growth of 42.53% in the last twelve months support these ambitious projections. For deeper insights into Axsome’s growth metrics and 12 additional ProTips, visit InvestingPro.
The analyst also expressed a 75% confidence level in the approval of Auvelity for Alzheimer’s agitation by 2026, following a planned sNDA filing in the third quarter of 2025. The optimism is based on the strength of clinical data, alignment with the FDA, and historical precedents set by other CNS/neuro case studies, such as Rexulti for ALZ agitation.
Further contributing to Axsome’s potential upside are the launches of multiple products between 2025 and 2026. Symbravo, which was approved in January 2025 for acute migraine, along with esreboxetine/AXS-14 (targeting fibromyalgia pain) and reboxetine/AXS-12 (for NT1 narcolepsy with cataplexy, expected to file in the second half of 2025), are projected to collectively add up to $800 million in sales by 2033, with a peak potential of $1.2 billion.
In addition to these products, Jefferies anticipates further indication expansion for Sunosi, an oral DNRI currently under consideration for various conditions including ADHD, MDD, binge eating, and shift work disorder. This expansion could offer additional revenue streams for Axsome.
Lastly, the analyst suggests that accretive business development deals could provide further benefits to the company’s growth trajectory. These strategic moves are anticipated to enhance Axsome’s portfolio and market presence in the coming years. With a healthy current ratio of 2.11 and a market capitalization of $4.82 billion, the company appears well-positioned to execute its growth strategy. Access comprehensive analysis and the full Pro Research Report on Axsome through InvestingPro.
In other recent news, Axsome Therapeutics has reported promising results from its clinical trials for Alzheimer’s and migraine treatments. The company presented data at the American Academy of Neurology Annual Meeting, highlighting the success of AXS-05 for Alzheimer’s disease agitation and AXS-12 for narcolepsy. However, Axsome also faced a setback with its PARADIGM Phase 3 trial of solriamfetol for major depressive disorder, which did not achieve the primary endpoint. Despite this, the company plans to conduct a new Phase 3 trial focusing on patients with excessive daytime sleepiness in 2025.
Guggenheim and Mizuho (NYSE:MFG) Securities maintained their positive outlook on Axsome, reiterating Buy and Outperform ratings with price targets of $195 and $216, respectively. Analysts from both firms highlighted the potential for future product launches and the company’s growth prospects. BofA Securities also maintained a Buy rating with a $174 price target, focusing on the strong performance of Auvelity in the MDD market. Axsome’s ongoing efforts in developing innovative treatments continue to attract attention from investors and analysts alike.
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