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Axsome's (AXSM) Q4 Earnings Miss Estimates, Pipeline in Focus

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Axsome Therapeutics, Inc. (AXSM - Free Report) incurred a loss of 78 cents per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 73 cents per share and also the year-ago quarter’s loss of 71 cents.

Axsome currently does not have any approved product in its portfolio. As a result, the company is yet to generate revenues from the same.

Quarter in Detail

Research and development (R&D) expenses were $17.4 million in the quarter, down 9.3% from the year-ago period owing to completion of several studies on the pipeline candidates.

General and administrative (G&A) expenses were $10.4 million, up 100% year over year due to increased stock compensation expenses and personnel costs.

As of Dec 31 2020, Axsome had cash worth $ $183.9 million compared with $202.4 million as of Sep 30, 2020. Management believes that its cash balance as of December-end along with $225 million worth term-loan facility will be enough to fund its anticipated operations for at least through 2024.

Full-Year Results

For 2020, the company reported loss of $2.77 per share compared with the year-ago loss of $2.01 per share.

Pipeline Updates

Axsome’s pipeline candidates like AXS-05, AXS-07, AXS-09, AXS-12 and AXS-14 are currently being developed for multiple central nervous system indications.

AXS-05, one of Axsome’s lead candidates, is being developed for treating major depressive disorder (“MDD”), treatment-resistant depression, smoking cessation and agitation associated with Alzheimer's disease (“AD”).

Along with the fourth-quarter earnings release, Axsome announced that it has submitted a new drug application (“NDA”) to the FDA for AXS-05 for the treatment of MDD. Investors might have cheered this news as shares of Axsome were up 2.7% following the above announcement on Monday. A potential approval for AXS-05 will be a huge boost for the company.

Axosme’s stock has declined 15% so far this year against the industry’s increase of 3.2%.

price chart for AXSM


Notably, in December 2020, Axsome initiated the double-blind, placebo-controlled, randomized withdrawal phase III ACCORD study to evaluate the safety and efficacy of AXS-05 for treating agitation associated with AD. AXS-05 is already being evaluated in the pivotal phase II/III ADVANCE-1 study for AD agitation.

Meanwhile, Axsome’s another lead candidate, AXS-07, is being developed for the acute treatment of migraine. The NDA for AXS-07 for the acute treatment of migraine is expected to be filed early in the second quarter of 2021.

In December 2020, the company announced positive data from the long-term phase III MOVEMENT study evaluating AXS-07 for the acute treatment of migraine. Data from the study showed that treatment with AXS-07 led to rapidly, substantially and durably relieved migraine pain and associated symptoms in the patient population.

This apart, Axsome’s AXS-12 is being developed to treat narcolepsy, a sleep disorder characterized by excessive sleepiness. A placebo-controlled, parallel-group phase III study AXS-12 for the given indication is expected to begin in the second quarter of 2021.

Axsome Therapeutics, Inc. Price, Consensus and EPS Surprise

Axsome Therapeutics, Inc. Price, Consensus and EPS Surprise


Axsome Therapeutics, Inc. price-consensus-eps-surprise-chart
| Axsome Therapeutics, Inc. Quote

Zacks Rank & Stocks to Consider

Axsome currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the biotech sector include Lexicon Pharmaceuticals, Inc. (LXRX - Free Report) , Repligen Corporation (RGEN - Free Report) and NabrivaTherapeutics AG , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lexicon’s loss per share estimates have narrowed 74.2% for 2021 over the past 60 days. The stock has skyrocketed 122.2% year to date.

Repligen’s earnings estimates have been revised 10.8% upward for 2021 over the past 60 days. The stock has rallied 15.8% year to date.

Nabriva’s loss per share estimates have narrowed 8.9% for 2021 over the past 60 days.

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