Cerena Chen, an analyst from Wells Fargo, maintained the Buy rating on Axsome Therapeutics (AXSM – Research Report). The associated price target remains the same with $160.00.
Cerena Chen’s rating is based on several key factors surrounding Axsome Therapeutics’ recent developments. The company’s decision to proceed with a supplemental New Drug Application (sNDA) for AXS-05, aimed at treating agitation in Alzheimer’s disease, is supported by positive pre-NDA meeting minutes with the FDA. This step leverages the existing Auvelity brand and intellectual property, which is beneficial for maintaining market presence and patient perception.
Additionally, despite some concerns about the strength of the data package, including mixed trial results and the nature of certain studies, the overall positive trial outcomes and FDA support enhance the likelihood of approval. The strategic choice to maintain Major Depressive Disorder (MDD) pricing is also seen as advantageous, particularly given the high co-morbidity of depression in elderly patients, which could lead to synergies in treatment. These factors collectively contribute to a favorable outlook for Axsome Therapeutics, justifying the Buy rating.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $190.00 price target.
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