In a market stuffed with hundreds of micro-cap companies, AXSM stock could be called a break-out success. Because in only four months, Axsome Therapeutics (NASDAQ:AXSM) went from being a $3 penny stock to a lot more.
Let’s check out one of the hottest small-capped companies at present and see what happened.
AXSM Stock
Back in January, AXSM shares were selling for anywhere around the $3 USD mark. In fact, the year prior saw these shares climb to highs just over $4… but no further. A stagnating stock, Axsome Therapeutics looked like a typical small-cap biopharmaceutical company trying to catch its break in a tough market.
But then on the weekend of January 5th, 2019, all that changed. AXSM stock surged on the report of positive results from a phase 2 clinical study on its experimental drug AXS-05. This drug—developed to treat major depressive disorder (MDD)—beat established drug Bupropion in improving the symptoms of depression.
This fact was a cherry on top for investors. The news sent AXSM stock soaring 468%.
News surrounding AXS-05 has only continued the bullish sentiment. Earlier this month, shares climbed again when another phase 2 study showed that the drug “met the prespecified primary endpoint of significantly curbing the habit of daily smoking.”
Another cherry, because it beat Bupropion in this area too.
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The Volatility in Bio-Pharma
But looking at the same period in 2018, we see a completely different story for Axsome. The clinical stage biopharmaceutical company had suffered a failure that pummeled shares. AXSM stock fell by 37% after a treatment trial for complex regional pain syndrome (CRPS) was halted.
The trial, named CREATE-1, was stopped following a recommendation by the independent data monitoring committee (IDMC) due to ‘futility’.
This is one of the reasons investors love or loath investing in micro-capped companies. Especially in the biopharmaceutical sector, trial successes or failures can make or break a stock respectively.
2019
AXSM stock is now on a high selling for nearly $15 a share. It’s a prime example of how one success can snowball for a company; the surge has sustained itself and appears to be continuing.
According to RNSDaily:
“Experts from research firms are bullish about the near-term performance of Axsome Therapeutics, Inc. with most of them predicting a $28.25 price target on a short-term (12 months) basis.”
With analysts setting an average price target that shows a further 82.49% ahead, its no surprise that all eyes are on AXSM stock. Further, if it hits this target, Axsome’s market cap will surge to $888.18 million.
A micro-capped company with heaps of potential still ahead, is AXSM on your radar now?
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