Shares of Axsome Therapeutics (NASDAQ:AXSM) fell over 10% last month, according to data provided by S&P Global Market Intelligence. The broader markets were down as investors considered the economic impacts of steps taken to contain regional coronavirus outbreaks. Those fears have only deepened in March.
There wasn't any negative news specific to the company in February. Of course, Axsome Therapeutics was one of the best stocks on the market in 2019, which positions the pharma stock as a prime target for a tumble during corrections. Investors with a long-term mindset shouldn't see any new reasons for concern. All eyes should remain on the important updates expected in March.
Axsome Therapeutics is scheduled to report fourth-quarter and full-year 2019 operating results on March 12. The development-stage company won't have much to survey in terms of financial performance, but investors are eager to learn of the latest projections for the pipeline.
Investors are awaiting top-line results from two important phase 3 clinical trials, both of which are expected to report before the end of March. The first is the STRIDE-1 study, which is evaluating AXS-05 in treatment resistant depression (TRD). The drug candidate has already aced a late-stage study in major depressive disorder (MDD). Delivering impressive results in STRIDE-1 would provide more confidence in the asset's blockbuster potential.
The second is the INTERCEPT study, which is evaluating AXS-07 in the early treatment of migraine. The asset tends to take a backseat to AXS-05, but it also has the potential to become a major commercial success.
The only thing investors can do is wait for the next update later this week. Axsome Therapeutics may not report top-line results from STRIDE-1 or INTERCEPT along with earnings, but management should provide an updated timeline for clinical programs and regulatory applications. If the update is mostly positive, it could help to make the stock a rare bright spot during the ongoing market correction.