AXSM - Axsome to face payer headwinds as depression therapy rolls out: BofA
- Citing payer dynamics ahead of its market launch, Bank of America painted a bleak outlook on Friday for Auvelity, a newly FDA-approved treatment for depression developed by Axsome Therapeutics ( NASDAQ: AXSM ). The firm retains the Overweight rating on the stock.
- The rapid-acting oral treatment targeted at adults with major depressive disorder (MDD) is set for U.S. launch in Q4 2022.
- Citing two sources tasked with formulating coverage decisions for large plans, BofA analysts led by Jason Gerberry noted that after pricing Auvelity above the MDD drugs approved on monotherapy studies, the company would have to offer deep discounts to improve uptake.
- Given the promotion-sensitive nature of the MDD category due to its large prescriber base, analysts expect Auvelity to underperform during the launch despite the sizable market opportunity.
- In addition, the firm cites a potential competitive threat from Relmada Therapeutics ( RLMD ), which is set to report Phase 3 data for its MDD candidate REL-1017 in the second half of 2022.
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Axsome to face payer headwinds as depression therapy rolls out: BofA