Axsome Therapeutics, the hidden gem. Breakdown.

As promised I will also be talking about another stock on my watchlist: $AXSM Otherwise know as Axsome Therapeutics.


Current Price: $76.55

52/Wk High: $109.94

52/Wk Low: $13.64


Read below for the breakdown!


Axsome Therapeutics is a biotech drug company with several promising drugs in the works.


The company currently has four drugs in the final phases and the data so far has been remarkable.


$AXSM has a so-called “miracle drug” called AXS-05. AXS-05 can be used for four different treatments!


AXS-05 can be used for: Major depressive disorder, Treatment-Resistant Depression, Agitation in slowing Alzheimer’s disease, and smoking cessation.


All of those trials besides smoking cessation are in phase 3 and the NDA is planned for Q4 of 2020. Furthermore, the company has several other great drugs in the works.


Axsome also has AXS-07 which has a planned NDA for Q4 of 2020 as well. AXS-07 is used for the treatment of Migraines and so far the data from phases 1 to 3 has been astoundingly great.


Axsome additionally has the AXS-12 which can be used for Narcolepsy. In phase 2 75% of the patients saw a 50% reduction in cataplexy attacks which is significantly better than a placebo and makes the drug even more promising.


Finally, Axsome penned a licensing deal with Pfizer to create a drug for a central nervous system depressant. AXS-14 will be used for patients with fibromyalgia.


While the drug was successful through all phases, Pfizer is no longer within the deal due to fear of competition (only a minor setback to the company).


Furthermore, according to The Motley Fool “global market opportunity of all seven indications of Axsome's pipeline candidates combined will amount to more than $60 billion by the middle of the decade,” (fool.com).


With the NDA catalyst coming and great supporting data, $AXSM is in a great position for approval and growth.


The company also has just over $219 million in cash and a burn rate of $130 million. Given that both AXS-05 and AXS-07 are soon to be approved, they have plenty of time to get to market and stay cash positive.


With the approval relatively soon for their two core drugs and two more blockbusters following, this company is in a tremendous position for growth.


Analysts are also very bullish and have a mean price target of $142.80/Share with a high of $210/share within the next 12 months. Considering where the stock currently trades, that would be a huge upside.


Finally, big money is betting big on Axsome $AXSM. With 66% of the company being owned by institutions and funds like Blackrock as an investor, the name is very much promising.


Overall I love the stock and am currently looking to open a position in the coming weeks.


Disclaimer: This is not investment advice simply my opinion based on private research.