SAGE - BofA upgrades Axsome to neutral cites improved outlook for MDD drug

2023-08-16 14:13:34 ET

BofA Securities has upgraded Axsome Therapeutics ( NASDAQ: AXSM ) to neutral, citing an improved outlook for the company's drug Auvelity for major depressive disorder, or MDD.

The investment bank said it was upgrading the stock primarily because Axsome's MDD drug Auvelity was tracking ahead of expectations, with an additional approval for the drug for the treatment of Alzheimer's agitation "likely."

BofA also said it believes Auvelity can hang on to its market exclusivity until 2034. Also brightening the drug's prospects is the recent failure by Sage Therapeutics ( SAGE ) and Biogen ( BIIB ) to win FDA approval for their MDD drug zuranolone. As a result, the bank has upped its peak Auvelity MDD sales projections to $1.2B from $830M.

The bank also raised its price objective for the stock to $81 from $59.

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