Axsome Therapeutics' Awesome Journey From $3 To $100, What Next?

(RTTNews) - Shares of Axsome Therapeutics Inc. (AXSM) closed Friday's trading at $100.67, a gain of 115% in just five trading days. This is for the first time that the stock's closing price has hit the $100 mark. On Thursday, the stock had briefly touched an intraday high of $104.98, only to close at $95.30.

When we alerted readers to AXSM for the first time on August 29, 2018, it was trading around $3. We again reminded readers of this stock on March 11, 2019, when it was trading around $9.

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So, what's behind the big rally?

The Company started this year off right by reporting positive results from its phase II trial of AXS-05 in major depressive disorder, dubbed ASCEND, on January 7, 2019, which sent its stock price up 116% to close at $6.87 that day. The stock gained momentum in the succeeding months and was trading in the range of $7 to $14.

On April 15, the Company reported positive results from a phase II trial of AXS-05 for smoking cessation treatment. Although the news didn't have much of an effect on the stock price that day, the Company's pipeline and progress on its clinical programs resonated more with investors, and by the end of November, the stock had climbed to $39.

On December 3, Axsome announced positive results from its phase II trial of AXS-12 in narcolepsy, dubbed CONCERT, which pushed the stock price to close at a new high of $45.61 that day. The Company delighted investors again on December 16, when it reported positive results from a phase III trial of AXS-05 in major depressive disorder, dubbed GEMINI. The news sent the stock soaring to $88 in intraday trading, which closed at $79.80.

In a bid to raise capital to fund the ongoing clinical development of its late-stage product candidates and for other general corporate purposes, Axsome, on December 19, priced an underwritten public offering of 2 million shares of its common stock at $87.00 per share. The underwriters have a 30-day option to purchase up to 300,000 additional shares of common stock. The offering is expected to close on or about December 23, 2019, subject to customary closing conditions.

Despite the secondary offering, Axsome shares gained 17% to touch an all-time high of $104.98 in intraday trading on December 19, closing the day at $95.30, and the rest is history.

Does the Company have some more catalysts that can move the share price?

Yes, they are listed below.

-- Topline data from a phase III trial of AXS-07 in migraine, dubbed MOMENTUM, are also due this quarter. -- Topline data from a phase III trial of AXS-05 in treatment-resistant depression (TRD), known by the name STRIDE-1, is anticipated in Q1, 2020. -- Topline data from a phase III trial of AXS-07 in migraine, dubbed INTERCEPT, are also scheduled to be reported in Q1, 2020. -- Topline data from a phase II/III trial of AXS-05 for the treatment of agitation in patients with Alzheimer's disease, dubbed ADVANCE-1, are slated for release in the first half of 2020.

Will Axsome's positive momentum continue or will it be intercepted? The answer lies in the question itself - it may depend on the MOMENTUM and INTERCEPT study results.