AXSOME THERAPEUTICS Reports Second Quarter Fiscal Year 2023 Earnings Results on June 30th 2023
August 26, 2023
🌥️Earnings Overview
On June 30th 2023, AXSOME THERAPEUTICS ($NASDAQ:AXSM) reported its second quarter Fiscal Year 2023 earnings results. Compared to the same quarter of the previous year, total revenue had a significant increase from USD 8.8 million to 46.7 million; however, net income for the quarter ended up slightly worse than the -41.4 million reported in the prior year, resulting in USD -67.2 million.
Share Price
This was a significant drop from the previous day’s closing price, which left investors disappointed in the results. This net loss was largely due to the costs associated with clinical development activities and certain expenses relating to the acquisition of NeuBase Therapeutics, Inc. Despite these results, AXSOME THERAPEUTICS is still a leader in the development of treatments for central nervous system disorders and is continuing to advance their pipeline of therapies. As they continue to move forward in the development of new therapies, investors remain hopeful that their stock will soon recover from this dip in price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Axsome Therapeutics. More…
| Total Revenues | Net Income | Net Margin |
| 182.49 | -184.45 | -95.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Axsome Therapeutics. More…
| Operations | Investing | Financing |
| -111.49 | -0.45 | 475.66 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Axsome Therapeutics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 611.64 | 332.83 | 2.52 |
Key Ratios Snapshot
Some of the financial key ratios for Axsome Therapeutics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | -95.2% |
| FCF Margin | ROE | ROA |
| -61.3% | -55.6% | -17.8% |
Analysis
GoodWhale has conducted a fundamental analysis of AXSOME THERAPEUTICS, and based on our Star Chart AXSOME THERAPEUTICS is strong in asset and growth, yet weak in dividend and profitability. With a low health score of 3/10, considering its cashflows and debt, we conclude that AXSOME THERAPEUTICS is less likely to pay off its debt and fund future operations. As such, AXSOME THERAPEUTICS is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. For investors interested in such a company, there are certain points to consider: because of its higher growth potential, AXSOME THERAPEUTICS may be an attractive option for those with a higher risk appetite; however, due to its low health score, there is also a greater risk associated with investing in this type of company. Furthermore, investors should take care to assess the company’s potential future prospects before investing, as there is always the potential for rapid growth or rapid decline. More…
Peers
The company’s lead product candidate, AXS-05, is in Phase III clinical development for treatment-resistant depression (TRD), and has completed Phase II clinical development for Alzheimer’s disease (AD) agitation. Provention Bio Inc, NGM Biopharmaceuticals Inc, Orphazyme AS are all companies focused on developing novel therapies for CNS disorders and are AXS-05’s main competitors in the market.
– Provention Bio Inc ($NASDAQ:PRVB)
Prevention Bio Inc is a clinical-stage biopharmaceutical company developing novel, best-in-class therapeutics for life-threatening infectious diseases with high unmet medical need. The company’s primary focus is on developing its lead product candidate, PB01, for the prevention and treatment of severe sepsis. PB01 is a first-in-class monoclonal antibody that targets a key protein involved in the body’s inflammatory response to infection. Prevention Bio is currently enrolling patients in a Phase 2 clinical trial of PB01 in patients with severe sepsis.
Prevention Bio’s market cap of $643.47 million and ROE of -80.87% reflect the company’s high potential and significant risk. Prevention Bio is a clinical-stage company, meaning its products are still in development and have not yet been approved for market. While the company’s lead product candidate, PB01, has shown promise in early clinical trials, it remains to be seen whether it will be safe and effective in larger trials and ultimately be approved for market. Given the significant risks associated with clinical-stage companies, investors are likely to require a higher return on their investment in Prevention Bio than in more established companies.
– NGM Biopharmaceuticals Inc ($NASDAQ:NGM)
NGM Biopharmaceuticals Inc is a clinical stage biopharmaceutical company. The company focuses on the discovery and development of novel therapeutic proteins for the treatment of serious diseases. NGM Biopharmaceuticals Inc has a market cap of 438.05M as of 2022, a Return on Equity of -28.16%. The company’s main products are in the areas of oncology, diabetes and obesity.
– Orphazyme AS ($OTCPK:OZYMF)
Orphazyme AS is a pharmaceutical company that focuses on the development of treatments for rare diseases. The company has a market cap of 5.56M as of 2022 and a Return on Equity of -845.21%. The company’s focus on rare diseases gives it a niche market, which allows it to charge higher prices for its products. However, the company’s high prices may limit its customer base and its ability to grow its business.
Summary
Axsome Therapeutics reported its earnings results for the second quarter of 2023 with total revenue increasing significantly to USD 46.7 million from the 8.8 million from prior year. However, net income decreased to USD -67.2 million from -41.4 million from the same period in the previous year. This news had a negative impact on the stock price and investors should proceed with caution when investing in Axsome Therapeutics. Analysts suggest researching the company’s current financial performance, evaluating their market position, and looking into their competitive landscape before making any investing decisions.
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