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Here's Why Axsome Therapeutics Rocketed 61.5% Higher in April

By Cory Renauer - May 3, 2020 at 3:39PM

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Positive results from two pivotal trials helped this stock bounce back from a beatdown in March.

What happened

Shares of Axsome Therapeutics (AXSM 0.91%), a clinical-stage biopharmaceutical company, rocketed 61.5% in April, according to data from S&P Global Market Intelligence. In addition to recovering from a coronavirus-fueled market crash in March, pivotal data from two successful studies pushed up the stock last month.

So what 

March was a rough month for Axsome Therapeutics shareholders. In addition to pandemic-inspired panic selling, the stock took a beating after the company announced a late-stage mishap with its lead candidate, AXS-05.

Businessperson with a rocket on his back.

Image source: Getty Images.

Investors that held on to their shares were made whole by the end of April thanks to a couple of positive data drops. The company's migraine headache candidate, AXS-07, met its main goal in a pivotal study and a new drug application for the acute pain reliever should reach the FDA in the fourth quarter.

Last month, Axsome also announced positive results from a pivotal study with AXS-05 and patients with Alzheimer's disease agitation. This is a condition marked by excessive activity and verbal aggression that makes providing their care especially challenging.

Now what

Although AXS-05 failed to meet its primary endpoint in a treatment-resistant depression study, Axsome is preparing a new drug application for the treatment of major depressive disorder (MDD) that should be ready for the FDA in the fourth quarter.

Alzheimer's affects an estimated 6 million Americans at the moment, and this figure is expected to reach 14 million by 2050. In addition to this enormous population, AXS-05 could also generate blockbuster sales as a new treatment option for MDD, a condition that an estimated 17.3 million American adults experience at least once per year. 

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Axsome Therapeutics, Inc. Stock Quote
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