Biotech Ideas

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>>> Axsome aims to give its balance sheet a boost


https://www.fool.com/investing/2023/06/28/as-the-bull-roars-shareholders-hate-how-these-2-co/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Shares of Axsome Therapeutics were down 9% early Wednesday morning. The biopharmaceutical company specializing in treatments for central nervous system disorders announced that it would sell shares of common stock.

Axsome's motivation is clear. As a biotech with a pipeline of candidate drugs, Axsome needs cash in order to run late-stage clinical trials on its most promising treatments, and the proceeds from the offering will go toward both existing and potential new clinical programs in the future. In addition, Axsome will need capital to expand its commercialization efforts for its already-approved Sunosi drug for sleep disorders and its antidepressant drug Auvelity.

The filed prospectus did not indicate a specific number of shares that Axsome intends to sell. However, the offering will fall under an existing shelf registration statement.

In the past couple of weeks, Axsome has told investors that it expects its top treatments to generate as much as $11.5 billion in revenue in the U.S. market at peak sales, which dramatically exceeds what most analysts following the stock had projected. Moreover, if Auvelity pans out as a possible treatment that could help Alzheimer's disease as well as those looking to quit smoking, then it could dramatically expand its addressable market and add to Axsome's overall success.

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