On Monday, Truist Securities adjusted its outlook on Axsome Therapeutics (NASDAQ:AXSM), increasing the price target to $180 from the previous $150, while sustaining a Buy rating for the company's shares. The adjustment follows discussions with six Alzheimer's disease agitation (ADA) doctors who are in favor of AXS-05, Axsome's treatment candidate, citing several reasons for their support.
The healthcare professionals highlighted their comfort with the safety profile of Auvelity (AXS-05), based on their experiences in treating major depressive disorder (MDD). They noted the rapid onset of effect, with AXS-05 showing results in one to two weeks, compared to eight or more weeks for the competitor drug brexpiprazole.
Additionally, the efficacy of AXS-05 was demonstrated in U.S. trial sites, which may translate better to the American demographic, as opposed to brexpiprazole's trial results, which were heavily skewed towards Eastern European sites.
The positive feedback from the ADA doctors about AXS-05's comprehensive evidence supporting its approval and potential front-line use over brexpiprazole has led Truist Securities to revise its ADA estimates for AXS-05. This reassessment has been a key factor in the decision to increase the price target for Axsome Therapeutics' stock.
The optimism surrounding AXS-05 is based on its perceived advantages in safety, onset of effect, and the relevance of its trial results to the U.S. market. These factors are driving Truist Securities' enhanced expectations for the drug's performance and, by extension, the company's financial outlook.
Axsome Therapeutics continues to focus on the development of therapies for central nervous system disorders, with AXS-05 being one of its leading candidates in the pipeline.
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