AXSOME THERAPEUTICS Reports Third Quarter FY2023 Earnings Results on November 6 2023
November 22, 2023
🌥️Earnings Overview
On November 6 2023, AXSOME THERAPEUTICS ($NASDAQ:AXSM) reported their total revenue for the third quarter of FY2023, which ended on September 30 2023, as a remarkable USD 57.8 million, rising from the 16.9 million of the same period in the prior year. However, their net income for the quarter was USD -62.2 million, lower than the -44.8 million of the preceding year.
Stock Price
On Monday, November 6, 2023, AXSOME THERAPEUTICS reported their third quarter FY2023 earnings results. At the opening bell, AXSOME THERAPEUTICS stock opened at $62.1, but by the time the market closed, it was trading at $62.4, a decrease of 4.2% from its prior closing price of $65.1. The earnings announcement was a major disappointment for investors and analysts alike, as the market had been expecting improved results from the company. Analysts had expected AXSOME THERAPEUTICS to report higher revenue and stronger profits, however the company fell short of these expectations. Furthermore, the company also did not provide guidance for its future performance.
In response to the earnings report, AXSOME THERAPEUTICS’ stock dropped significantly and has yet to recover to its pre-earnings levels. Investors have chosen to remain cautious on the stock, as uncertainty remains about the company’s future performance and growth prospects. While the company has yet to release any major announcements or updates, analysts expect more details about the company’s future plans in the near future. 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 |
| 223.44 | -201.83 | -85.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Axsome Therapeutics. More…
| Operations | Investing | Financing |
| -142.28 | -0.76 | 332.08 |
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 |
| 600.86 | 331.35 | 5.7 |
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% | – | -86.6% |
| FCF Margin | ROE | ROA |
| -64.0% | -44.1% | -20.1% |
Analysis
At GoodWhale, we specialize in financial analysis and have been keeping an eye on AXSOME THERAPEUTICS. Our Star Chart has classified this company as a ‘cheetah’, meaning that it has achieved high revenue and earnings growth but is considered less stable due to lower profitability. We believe that this type of company may be of interest to aggressive investors who are looking for high returns despite higher risks. GoodWhale’s analysis of AXSOME THERAPEUTICS also showed a low health score of 3/10 with regard to its cashflows and debt. This means that AXSOME THERAPEUTICS is less likely to sustain future operations in times of crisis. On the other hand, it is strong in terms of assets and growth but weak in terms of dividends and profitability. Investors should bear this in mind when considering investing in this company. 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 released their third quarter of FY2023 earnings results on November 6 2023, revealing total revenue of USD 57.8 million, a significant increase from the previous year. However, net income reported was USD -62.2 million, representing a decrease from the previous year. Consequently, the stock price moved down the same day. Investors should note that AXSOME THERAPEUTICS’ financial performance appears to have weakened compared to the previous year, and may want to conduct further analysis into the company’s financials to better assess the potential risks and opportunities for investing.
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