Shares of the Axsome Therapeutics, Inc. (AXSM) stock were soaring in the Pre-market following the release of the AXS-05 update. AXSM stock price saw a push of 24.58% to reach 28.86 a share at the time of this writing. The stock was also green in the previous trade and went up by 8.29% at closing. Let’s take a closer look at this stock.

What’s Happening?

Axsome Therapeutics, Inc is the biopharmaceutical stock that develops therapeutics for the central nervous system in the U.S. Its main product is AXS-05 the update of which is released today. AXSM stock today announced that U.S.A Food & Drug administration will be unable to complete the review of AXS-05 by the target action date of August 22, 2021. Axsome reported that FDA did not ask for any additional information and a review of the application is in progress.

What is AXS-05?

AXSM stock is developing AXS-05 to treat major depressive disorder as well as for other central nervous system disorders. It is a combination of dextromethorphan and bupropion along with Axsome’s metabolic inhibition technology.

Investigation against AXSM stock:

Recently last week The Schall Law Firm announced ongoing investigations against AXSM stock on behalf of its investors. The firm asked shareholders for contact in case of any loss. The investigations will focus on

• Whether Axsome stock made any false or misleading statements.
• Whether it failed to reveal information relevant to investors.

AXSM stock reported on August 09, 2021, that FDA claimed deficiencies with its AXS-05 new drug application(NDA). AXSM stock claimed that it was trying to discover the nature of deficiencies. The stock further added that there are chances that AXS-05 approval might get late.

Financial View of AXSM stock:

In the second quarter of 2021, Axsome stock reported a net loss of $32.3 million, or $(0.86) per share. By the end of the second quarter, AXSM had had $141.2 million in cash. Axsome has enough cash balance along with a $225 million term facility to finance its operating activities by 2024. The stock has a market cap of 812.4 million.

Wrap Up:

Axsome stock is hot among investors as far as market sentiment is concerned. Investors are optimistic that the FDA will approve its product under review. In short, investors having an interest in medical stocks need to keep an eye on Axsome Therapeutics.