News about Axsome Therapeutics

Axsome Therapeutics (AXSM) has recorded a 29.06% compound annual growth rate over the past five years, and the article notes that sustaining that pace for nine more years would turn $5,000 into $49,670. The company's growth since 2021 has been driven largely by clinical and regulatory progress, including Auvelity, which treats depression and agitation associated with Alzheimer's disease, an indication the article calls fresh in a large market with few approved options. Axsome may earn approval for AXS-12, a treatment for cataplexy associated with narcolepsy, by May 2027, and it has several Phase 3 programs. With a $7.5 billion market cap, the same growth rate over nine years would imply a $74.5 billion company, which the author says would require near-flawless execution and significant commercial penetration. The author judges this highly unlikely, though considers the company's prospects attractive and says it could again beat the market over the long run.

Over the past six months, AXSM returned -7% and NBIX returned 12%, according to the article. Axsome's Q2 2026 revenue rose 46% to $218.4 million, driven largely by AUVELITY sales of $180.3 million, up 51%, and new-to-brand prescriptions for patients aged 65 and older rose 126% in the first eight weeks of the Alzheimer's-related agitation launch. Axsome still reported a $51.3 million net loss in Q2 and a $320 million cash balance. Neurocrine's revenue grew 39% to $959 million, with INGREZZA at $716 million and CRENESSITY at $184 million, and it posted $2.85 in non-GAAP EPS for Q2. At 32.15x forward earnings for Axsome versus 14.12x for Neurocrine, the article says Neurocrine is cheaper, while Axsome must show that its faster growth can turn into sustained profitability.