H.C. Wainwright analyst Ram Selvaraju has reiterated their bullish stance on AXSM stock, giving a Buy rating on April 1.
Ram Selvaraju has given his Buy rating due to a combination of factors including the promising results from Axsome Therapeutics’ recent clinical trials. The FOCUS trial for solriamfetol in ADHD showed significant improvements in symptoms, achieving both primary and key secondary endpoints. This success suggests a potential for label expansion into ADHD, although the uptake might be limited due to the competitive and generic nature of the market.
Furthermore, while the PARADIGM trial in major depressive disorder (MDD) did not meet its primary endpoint, solriamfetol demonstrated efficacy in a subgroup of patients with excessive daytime sleepiness (EDS). This finding has prompted plans for a Phase 3 trial targeting MDD patients with EDS, a prevalent symptom in this population. The potential for solriamfetol to address this unmet need in MDD contributes to the positive outlook. Despite the challenges, the overall prospects for solriamfetol’s label expansion and its unique positioning in the market underpin the Buy rating.
In another report released on April 1, Bank of America Securities also reiterated a Buy rating on the stock with a $174.00 price target.