Mizuho Securities has reiterated its Outperform rating on shares of Axsome Therapeutics (NASDAQ: NASDAQ:AXSM), with a price target of $106.00.
The firm's positive outlook follows a recent investor dinner hosted with Axsome's COO Mark Jacobsen and CFO Nick Pizzie. The discussion at the event centered around several key topics related to the biopharmaceutical company's operations and prospects.
The focus of the conversation included the upcoming Phase 3 readouts for Axsome's lead asset, AXS-05, which is being developed for the treatment of agitation in Alzheimer's disease.
Additionally, the rationale for the Phase 3 ACCORD-2 study for AXS-05 in Alzheimer's disease agitation was discussed. The executives also touched upon the potential filing strategies for AXS-05, weighing the options between a supplemental New Drug Application (sNDA) and a New Drug Application (NDA).
The dialogue further covered the opportunity presented by solriamfetol, also known as Sunosi, for the treatment of Attention Deficit Hyperactivity Disorder (ADHD). This is another area where Axsome Therapeutics is looking to make a significant impact. Moreover, the company's approach to research and development, as well as strategies for product label expansion, were key topics of discussion.
In other recent news, Axsome Therapeutics has amended its loan agreement with Hercules Capital (NYSE:HTGC), increasing the Tranche 3 Commitment from $75 million to $80 million and extending availability periods for additional tranches, providing Axsome with extended access to capital.
The company also received positive attention from multiple analyst firms such as Mizuho Securities, TD Cowen, and H.C. Wainwright, all maintaining positive ratings based on the company's progress in pharmaceutical trials and commercial progression of Auvelity.
Additionally, Axsome Therapeutics has seen significant developments regarding its migraine treatment drug, AXS-07, which has been accepted for review by the U.S. Food and Drug Administration. Analysts from H.C. Wainwright anticipate that the drug could generate sales of approximately $79 million in 2025.
On the other hand, Myriad Genetics (NASDAQ:MYGN) reported second-quarter revenues of $211.5 million, exceeding consensus expectations, and raised its guidance for 2024 to an estimated $835-845 million. The company's main product, the MyRisk hereditary cancer panel, is expected to account for approximately 44% of the company's sales for 2023.
Wells Fargo has highlighted several companies, including Axsome Therapeutics and Myriad Genetics, for potential growth. The firm also maintains an Underweight rating on Tesla (NASDAQ:TSLA), Inc., citing declining delivery growth due to lower demand and reduced effectiveness of price cuts.
Lastly, Mizuho Securities has sustained its positive stance on Axsome Therapeutics, reiterating an Outperform rating and a $106.00 price target for the company's stock, following a specialized discussion on intellectual property and patent issues concerning biopharmaceutical companies.
InvestingPro Insights
Axsome Therapeutics' financial metrics and InvestingPro Tips offer valuable context to the company's strategic focus and market position. The company's impressive gross profit margin of 90.3% in the last twelve months as of Q2 2024 underscores its operational efficiency, aligning with Mizuho's positive outlook. This is further supported by an InvestingPro Tip highlighting Axsome's "impressive gross profit margins."
Despite the company's strong revenue growth of 59.73% over the same period, an InvestingPro Tip notes that "analysts do not anticipate the company will be profitable this year." This insight provides important context to Mizuho's focus on upcoming Phase 3 readouts and potential filing strategies, as these milestones could be crucial for the company's path to profitability.
The market seems to recognize Axsome's potential, with the stock trading at a high Price / Book multiple of 39.28. This valuation, coupled with Mizuho's $106 price target, suggests investor confidence in the company's pipeline and growth prospects. It's worth noting that InvestingPro offers 6 additional tips for Axsome Therapeutics, providing a more comprehensive analysis for investors interested in delving deeper into the company's financial health and market position.
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