Is Axsome Therapeutics, Inc. a Hidden Gem?

Axsome Therapeutics, Inc. has seen its shares double in the past nine months, reaching a market value of $12.6 billion from $6.1 billion after the approval and launch of Auvelity for agitation associated with Alzheimer's disease. CEO Herriot Tabuteau told Forbes that the launch received "tremendous" early reception and raised his peak sales forecast for the Auvelity franchise to $8 billion from $6 billion.

Market Performance

■Generated $709 million in revenue over the latest 12 months (64% YoY growth).

■William Blair analyst Myles Minter projected $975 million in 2026 sales and $1.7 billion in 2027.

■The biopharmaceutical firm expects to file at least one new drug application annually through 2030.

Investment Interest

■Axsome Therapeutics, Inc. is a commercial-stage biopharmaceutical company that develops therapies for the management of central nervous system disorders.

■Certain AI stocks may offer greater upside potential and carry less downside risk.

It will be interesting to see how the markets react to this development.