New Trade for May 18th, 2023

Biotech stocks began the year with gusto, but sold off when the broader-market rally fizzled in February, as investors sought safer havens. Yet, with renewed optimism in the market as banking sector fears ease, biotech growth stocks are regaining popularity.  

No doubt about it, it’s an exciting time to invest in biotech and today we’re featuring a standout from the category.  Our stock recommendation has a pipeline brimming with promise and potential positive catalysts on the very near horizon.  Another opportunity to strike up a position in this promising name at its current price may not come. 

Axsome Therapeutics (AXSM)

Axsome Therapeutics has two approved drugs on the market.  Sunosi, a dopamine-norepinephrine reuptake inhibitor and the only one of its kind to treat narcolepsy and Auvelity, a fast-acting oral treatment for depression, also the first of its kind.  The latter launched in October and is being evaluated to treat agitation in people with Alzheimer’s disease and to help people quit smoking.  Other potential tailwinds include Axsome’s two other drugs — AXS-07 for treating migraines and AXS-14 for fibromyalgia — that it plans to submit for FDA approval this year.

The stock is up 7% year to date, and up 152% over the past 12 months. Given the potential of Axsome’s therapies, the company’s $3.4 billion market cap may not adequately reflect its long-term potential.

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