AXSOME THERAPEUTICS Reports Third Quarter Fiscal Year 2023 Earnings Results

🌥️Earnings Overview

For the third quarter of the Fiscal Year 2023, AXSOME THERAPEUTICS ($NASDAQ:AXSM) reported a total revenue of USD 57.8 million, significantly higher than the USD 16.9 million reported in the same quarter the year before. Net income was also up from the previous year’s quarter, increasing from a net loss of USD -44.8 million to a net loss of USD -62.2 million.

Market Price

AXSOME THERAPEUTICS reported its third quarter fiscal year 2023 financial results on Monday, with its stock opening at $62.1 and closing at $62.4, a decrease of 4.2% from last closing price of 65.1. Gross profit also increased by 10% to $45 million, compared to the same period last year. AXSOME THERAPEUTICS focused on advancing its current portfolio of product candidates, as well as its pipeline of new products. The company’s third quarter performance was strong overall and AXSOME THERAPEUTICS is confident in its ability to continue to deliver strong results.

It is currently in the process of expanding its presence in new markets and launching new products, which should contribute to its long-term growth. Going forward, investors should keep an eye on AXSOME THERAPEUTICS as it continues to execute on its strategic goals. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Axsome Therapeutics. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Axsome Therapeutics. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Axsome Therapeutics. More…

Key Ratios Snapshot

Some of the financial key ratios for Axsome Therapeutics are shown below. More…

Analysis

At GoodWhale, we recently analyzed AXSOME THERAPEUTICS‘s financials and categorized them into our proprietary Star Chart. Our analysis showed that AXSOME THERAPEUTICS is classified as a ‘cheetah’, meaning that it has achieved high revenue or earnings growth but is considered to be less stable due to lower profitability. Based on these findings, we believe that AXSOME THERAPEUTICS may be of interest to investors looking for strong growth prospects but tolerance for higher risk. AXSOME THERAPEUTICS is strong in terms of asset and growth but weak in dividend and profitability. Additionally, its low health score of 3/10 indicates that it may not be able to safely ride out any crisis without the risk of bankruptcy. 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

Investors in Axsome Therapeutics responded negatively to the company’s third quarter earnings report, with the stock price falling on the same day. The revenue for the quarter ended September 30th, 2023, was USD 57.8 million – an increase from the 16.9 million reported in the corresponding quarter of the previous year.

However, net income for the quarter was reported as USD -62.2 million, an increase from the -44.8 million reported in the same quarter of the previous year. This implies that although total revenue had increased from the prior year, operating expenses had also risen, leading to a larger net loss. As such, investors may be wary of the company’s ability to generate profits in the near future.