When penny stocks triple their value, it makes you sit up and take notice. This is exactly what Axsome Therapeutics (NASDAQ:AXSM) has done for those lucky few who invested when Axsome was still a penny stock.
Because at $14.30 USD on the NASDAQ exchange, AXSM has done what so few can—breach the $5 mark and keep going. More impressive is the time frame in which this was done. As recently as December 2018 was when these shares sold anywhere between $2 and $3. That means in just over three months, Axsome Therapeutics has grown astronomically and brought all its investors with it.
Penny Stocks No More
January 7th saw everything change. The company reported positive results from a phase 2 clinical study on its experimental drug AXS-05. This drug was developed to treat major depressive disorder, or MDD, and beat bupropion across the board in improving the symptoms of depression.
Because of this success, according to the Motley Fool, “Axsome’s share price is now up by a whopping 468% so far this year.”
This is also a wonderful example of why biotechnology penny stocks can be some of the most exciting plays for investors. The opportunity for success from a drug trial is great. When these trials do go well, the stock price almost always soars.
January’s trial began the bull run of this once penny stock. But news in March cemented it. Axsome announced that AXS-05 “had received Breakthrough Therapy designation from the US Food and Drug Administration (FDA).”
This designation gives the company several benefits. One of the greatest ones is the continued FDA involvement throughout the development and reviewing of the drug. This allows Axsome to file for approval on a rolling basis and may lead to a shorter review period for approval.
According to the S&P Global Market Intelligence, March saw this penny stock pack on 78% in gains alone. The clinical-stage biopharmaceutical company is now riding high and looks to be continuing this way.
From what was a $3 penny stock only three months ago, AXSM is now worth over $14 today.
Simply speaking, this is a prime example of what investors hope for when picking penny stocks.
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