Axsome Therapeutics, Inc. (AXSM) stock is falling today following the release of Q2 2021 financial results and business updates. AXSM stock price saw a massive decline of 41.20% to drop at $30.08 a share at the time of this writing. The stock was green in the previous trade and went up by 0.99% at the previous closing. Let’s take a closer look at this stock.

AXSM Stock Second Quarter 2021 Financial Results:

• AXSM stock reported a net loss of  $32.3 million, or $(0.86) per share in the second quarter ended June 30, 2021. Net loss of the prior year same quarter was $18.3 million, or $(0.49) per share.
• The stock spent $14.5 million for the second quarter of 2021 as compared to $10.5 million in Q2, 2020. The expenses related to NDA filings and personnel resulted in this increase.
• General and administrative expenses of the stock were $16.3 million for the reported quarter as compared to 7.2 million for the same period in 2020. Pre-commercial activities and personnel expenses increased these general and administrative expenses.
• Axsome stock had $141.2 million in cash as of June 30, 2021, as compared to 183.9 million as of December 31, 2020.

Financial Outlook of the AXSM stock:

AXSM stock’s management expects that its cash balance along with a $225 million term loan facility will be sufficient to fund its operating activities by 2024. The stock will advance its pipeline and build its commercial function in the future. Hence it expects an increase in its operating expenses year over year.

AXS-05 Update:

AXS-05 is a novel, oral, investigational NMDA receptor antagonist with multimodal activity. It is used to treat major depressive disorder, Alzheimer and smoking cessation. AXSM stock today announced that AXS-05 met the primary and secondary endpoints in the MERIT phase 2 trial in treatment-resistant depression. The trial included 44 TRD patients and both primary and secondary endpoints prevented the relapse of depression as compared to placebo. The trial showed no adverse effects during the study period. One patient suffered from gout and bacteremia but this didn’t relate to the study medication.

Wrap Up:

Market sentiment is not favorable for AXSM stock in the stock market. The stock suffered a significant increase in a net loss in the second quarter of 2021 as compared to a net loss in the same period of the previous year. The stock has a market cap of $1.92 billion and a 354,126 average trading volume.