Axsome Therapeutics' AXS-05 Has Potential To Become A First-Line Treatment For Depression

About: Axsome Therapeutics, Inc. (AXSM)
by: Zhiyuan Sun
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Zhiyuan Sun
Long/short equity, healthcare, biotech, ETF investing

AXS-05 has demonstrated clinical superiority over Bupropion with no psychotomimetic side effects nor somnolence.

This alone is enough to justify AXSM's $800 million valuation.

AXS-05's other indications, however, may not possess feasible investigational goals.

Nonetheless, the company's Phase 3 data release for all 3 of its drug candidates due by the end of FY2019 will likely serve as major bullish catalysts.

Company Thesis

Axsome Therapeutics' (NASDAQ:AXSM) is a small-cap biotech company specializing in treating psychiatric and central nervous system disorders. The company's most promising drug candidate, AXS-05, is being investigated for 3 indications, with