Axsome Therapeutics: Teaching Old Drugs New Tricks
Brean Capital assumed coverage of Axsome Therapeutics Inc (NASDAQ: AXSM) with a Buy rating and $20 target price, implying a potential upside of 154 percent.
The company's leading product candidate is AXS-02, a non-opioid therapeutic in development for chronic pain. AXS-02 is being studied for complex regional pain syndrome (CRPS), knee osteoarthritis (OA) with bone marrow lesions (BMLs), and chronic lower back pain (CLBP) with modic changes (MC).
Meanwhile, Axsome's other product candidate, AXS-05, is in trials indicated for treatment resistant depression (TRD) and agitation in Alzheimer's disease (AD). AXS-05 is a fixed-dose combination of dextromethorphan and bupropion, which have been shown to be effective in activating central nervous system receptors.
"We believe the synergistic effects provided by the combination will be superior to either single agent in TRD and AD, as they have differing mechanisms of action," analyst Difei Yang wrote in a note.
Yang says the company has the following upcoming catalysts:
"AXS-02 vs. CRPS Phase III trial (CREATE-1) interim analysis in 4Q16";
"IND filing for AXS-05 vs. AD Phase II/III in 4Q16"; and
"CREATE-1 trial completion by YE2017."
"We see the value drivers, CPRS, TRD, and AD, possessing lower-than-average R&D risks and a proven business model that lends itself to a shorter line to commercialization," Yang added.
Latest Ratings for AXSM
Oct 2016 | Brean Capital | Assumes | Buy | |
Dec 2015 | Brean Capital | Initiates Coverage on | Buy |
View More Analyst Ratings for AXSM
View the Latest Analyst Ratings
See more from Benzinga
Argus Slightly Disappointed With Pfizer's Decision Not To Split The Company
Here's Why Carnival Can Cruise Through Chinese And Fuel Hedging Headwinds
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.