Axsome Therapeutics Inc (AXSM)

[Max77]

SVB Leerink analyst Marc Goodman expressed surprise in a note to clients that the biotech stock crashed. Investors are much more interested in Axsome's efforts in depression and Alzheimer's disease with its AXS-05 drug, he said. Last Tuesday, shares surged 25% after Axsome said it finished FDA negotiations ahead of approval for that treatment.

"The focus has been consistently on AXS-05 for depression, and the news from management on that asset has been incrementally positive given the post-marketing requirement discussions, and approval seems much more likely now in the second quarter," he said. "We look at this sell-off as a good buying opportunity."