Axsome secures $570 million credit facility from Blackstone

NEW YORK - Axsome Therapeutics, Inc. (NASDAQ:AXSM), a company focused on developing treatments for central nervous system (CNS) disorders, has announced a new financing agreement with Blackstone Life Sciences and Blackstone Credit & Insurance. The $570 million credit facility, which includes a $500 million term loan and a $70 million revolving credit facility, is intended to bolster the biopharmaceutical company’s financial position.

The financing agreement, effective today, allows Axsome to retire its previous term loan with Hercules Capital, potentially reducing interest expenses. According to Herriot Tabuteau, MD, CEO of Axsome, the new terms will accelerate the company’s path to profitability and enhance shareholder value while continuing to develop treatments for CNS conditions. InvestingPro analysis reveals that while the company operates with a moderate level of debt, analysts have recently revised their earnings expectations upward for the upcoming period, suggesting potential improvements in financial performance. Discover more insights with InvestingPro’s comprehensive research report, available for over 1,400 US stocks.

Blackstone representatives expressed their support for Axsome’s growth and commercial opportunities. Craig Shepherd and Kiran Reddy, MD, Senior Managing Directors with Blackstone Life Sciences, highlighted the investment’s role in reinforcing Axsome’s operational and financial agility. Brad Colman, Global Head of Healthcare with Blackstone Credit & Insurance, commended Axsome’s commercial success and leadership, suggesting the transaction demonstrates Blackstone’s commitment to providing credit solutions to life sciences companies.

Under the new agreement, Axsome drew $120 million from the term loan to settle the previous loan with Hercules Capital. Additional funds, up to $250 million, may be drawn at Axsome’s discretion, with a further $200 million subject to Blackstone’s approval. The credit facility, maturing in May 2030, bears interest at a SOFR variable rate plus 4.75% for the term loan and plus 4.0% for the revolving credit facility, with a 60-month interest-only payment period.

Concurrent with the financing, Blackstone purchased $15 million of Axsome’s common stock at a 30-day volume-weighted average price of $107.14 per share. Further details of the financing agreement will be disclosed in Axsome’s Form 8-K filing with the Securities and Exchange Commission. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, while analyst targets suggest potential upside, with price targets ranging from $143 to $210 per share. For deeper insights into company valuations and investment opportunities, explore InvestingPro’s advanced stock screening and analysis tools.

Axsome Therapeutics is recognized for its portfolio of FDA-approved treatments for major depressive disorder, excessive daytime sleepiness associated with narcolepsy and obstructive sleep apnea, migraine, and other late-stage development programs.

This financial move is based on a press release statement and reflects the company’s ongoing efforts to improve patient outcomes in the treatment of serious CNS disorders.

In other recent news, Axsome Therapeutics reported its first-quarter 2025 earnings, revealing a net loss of $1.22 per share, which exceeded analyst expectations of a $1.30 loss. The company’s revenue was slightly below forecasts, totaling $121.46 million compared to the anticipated $121.58 million. Axsome’s total product revenues increased by 62% year-over-year, driven by strong sales of Auvelity and Sunosi. H.C. Wainwright analysts lowered their price target for Axsome to $180 from $200, maintaining a Buy rating despite the company’s higher-than-expected operating expenses. Meanwhile, BofA Securities slightly raised its price target to $176, also maintaining a Buy rating, citing the potential for Auvelity’s revenue to surpass $1 billion following a patent settlement. Axsome is preparing for the launch of SYMBRAVO for migraines, supported by positive trial results, and anticipates reaching cash flow positivity early next year. The company’s financial position remains strong, with $300.9 million in cash and equivalents at the end of the first quarter.

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