JAZZ - Axsome at a four-month high as Truist raises target on deal to acquire sleep therapy

The shares of Axsome Therapeutics (NASDAQ:AXSM +12.9%) have reached the highest level since November after Truist Securities raised the price target of the clinical-stage pharma company on Tuesday, citing its deal to acquire Sunosi (solriamfetol) from Jazz Pharmaceuticals (JAZZ +0.4%). Sunosi, indicated to improve wakefulness in adults with excessive daytime sleepiness (EDS) due to narcolepsy or obstructive sleep apnea, netted $57.9 million in sales for Jazz (JAZZ) in 2021. The deal involving an upfront payment of $53 million and royalties appeared to be “strategic,” Truist analysts led by Joon Lee note as they expect Axsome (AXSM) to secure approval for AXS-05 and AXS-07 in Major Depressive Disorder (MDD) and migraine, respectively. The team estimates that 37% of MDD and 50% of migraine patients have EDS as a comorbidity. Arguing that the management highlighted positive regulatory interactions, the analysts note that the FDA review of AXS-05 seems to be advancing well with

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Axsome at a four-month high as Truist raises target on deal to acquire sleep therapy