Thu. Jun 8th, 2023

By Sam Boughedda — Axsome Therapeutics Inc (NASDAQ:AXSM) stock plunged around 18% Friday, closing under $30.

In accordance to Morgan Stanley (NYSE:MS) analyst Vikram Purohit, the “outsized pressure” might relate to the company’s cancellation from an impending broker convention.

The analyst wrote in a be aware that they received an update from Axsome management regarding modern tension. The update verified the corporation is unable to go to the convention in-individual due to a scheduling conflict.

Purohit pointed to Axsome administration steering of likely motion by the Meals and Drug Administration on the New Drug Software for depression cure AXS-05, detailing that “presented the superior diploma of investor concentrate&perceived uncertainty with regards to this catalyst, some traders may well see the cancellation as reason for caution regarding a likely AXS-05 update.”

“However, mgt observed in their update that they will be conducting trader conferences virtually and observed that the company is not conscious of additional destructive developments,” he wrote.

“We proceed to see the expected impending Fda motion on AXS-05 as a important catalyst for AXSM, and anticipate +40%-60% upside upon information of an acceptance or entry into labeling discussions and 50%+ force from the announcement of a CRL and/or supplemental deficiencies,” the analyst added.

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