Axsome Therapeutics Inc. (NASDAQ: AXSM) is a biotechnology business that presently has no marketable drugs. However, in the future quarters, the scenario may alter. The prospect drew the attention of shareholders to AXSM because of this.
Axsome Therapeutics is working on numerous candidates to treat illnesses including narcolepsy and migraine. Its current flagship initiative is AXS-05, which can be utilized to treat a variety of neurological illnesses.
Its effectiveness in treating arousal in Alzheimer’s disease is one intriguing area of inquiry. Axsome Therapeutics Inc. (AXSM) consented to a number of extra FDA conditions for its medicine AXS-05, which is being authorized as a therapy for major depressive disorder, according to the US Securities and Exchange Commission (SEC).
This might be interpreted as an indication that the FDA is ready to approve the medicine. That is, Axsome Therapeutics Inc. (AXSM) may eventually have the first medicine in the coming quarters.
Regardless of the likelihood of FDA clearance, there is always the possibility of a negative response. AXSM has dealt with similar challenges in the past. The FDA recently rejected the migraine medicine AXS-07 owing to concerns with the company’s production data.
Most likely, the firm has already taken into consideration earlier complaints and made efforts to avoid any difficulties in the AXS-05 application.
The financial status of Axsome Therapeutics Inc. (AXSM) poses a danger to investors. If the medicine is authorized, the firm will require more money for marketing and distribution channels, which might push management to dilute the stock.
However, the corporation claims it has enough finances leftover from a $300 million term line of credit to keep it operational until 2024.
The shares of AXSM rose 10.47 percent to $30.82 in the most recent trading session. The company’s stock has gained -47.73 percent in the last year, and 14.91 percent in the last week. The stock has dropped -21.50 percent in the last six months and -1.22 percent in the previous three months.