Axsome stock fell Monday after the biotech company posted wider-than-expected losses, though second-quarter sales of its biggest moneymaker, a depression treatment, topped most estimates.
During the three months that ended on June 30, Axsome Therapeutics lost $1.67 per share, widening from a year-earlier loss of $1.54 per share. But analysts surveyed by FactSet called for a narrower losses of $1.31.
Needham analyst Ami Fadia blamed higher-than-expected expenses from research and development and selling, general and administrative costs. These items missed expectations by a combined $18 million, she said in a client note.
Axsome stock closed down 1.4% at 83.21, paring much steeper losses. Shares are forming a cup base with a buy point at 98.40, according to MarketSurge.
Axsome Stock: Revenue Beats Forecasts
Revenue surged 87% to $87.2 million, beating forecasts for $84.9 million to $86.9 million, according to multiple analysts' reports. Sales of Auvelity, Axsome's depression treatment, topped most views at $65 million. Notably, Auvelity sales rocketed 135% year over year.
But Sunosi sales came in slightly below expectations at $22.1 million. Analysts called for $22.8 million to $23.3 million, William Blair analyst Myles Minter said in a report. Sunosi treats excessive daytime sleepiness due to obstructive sleep apnea or narcolepsy. Minter has an outperform rating on Axsome stock.
Importantly, Axsome says 60% of commercial insurers now cover the costs for Auvelity, up from 48% in the first quarter. Across all payers — which includes Medicare and Medicaid — 76% reimburse for the costs of Auvelity.
Mizuho Securities analyst Graig Suvannavejh says the update is positive for Axsome stock, which he rates as an outperform. He notes the sell-off comes in low volume and amid a broader global tumble for the stock market.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
