Axsome Therapeutics Inc. ((AXSM)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Axsome Therapeutics’ recent earnings call revealed a generally positive sentiment, driven by impressive revenue growth and strong product performance. The company showcased its strategic commercial execution and a promising R&D pipeline. However, financial challenges remain due to increased expenses and ongoing net losses.
Record Revenue Growth
Axsome Therapeutics reported total revenue of $171 million for the third quarter, marking a remarkable 63% increase year-over-year. Notably, AUVELITY’s net product sales reached $136.1 million, reflecting a 69% rise compared to the previous year.
Strong Product Performance
The company highlighted the robust performance of its products, with SUNOSI’s net product revenues increasing by 35% year-over-year. SYMBRAVO, in its first full quarter, generated $2.1 million in net sales, with over 3,300 new patients starting therapy.
Advancement in R&D Pipeline
Axsome is making significant strides in its R&D efforts, having submitted a supplemental NDA for AXS-05 targeting Alzheimer’s disease agitation. The company is also preparing an NDA submission for AXS-12 in narcolepsy and planning multiple Phase III trials for various conditions.
Commercial Strategy Success
AUVELITY prescriptions grew by 46% year-over-year, with coverage expanding to 85% of all lives. The initiation of a direct-to-consumer advertising campaign further boosted new patient starts.
Increased SG&A Expenses
The company’s selling, general, and administrative expenses rose by 57% compared to last year, primarily due to commercialization activities for AUVELITY and the launch of SYMBRAVO.
Continued Net Loss
Despite improvements from the previous year, Axsome reported a net loss of $47.2 million for the quarter, underscoring ongoing financial challenges.
Forward-Looking Guidance
Axsome Therapeutics shared optimistic guidance for its product portfolio and R&D pipeline. The company anticipates further revenue growth, with gross-to-net discounts expected to rise. It plans to expand its commercial reach and advance its late-stage pipeline, projecting a path toward cash flow positivity with its current cash reserves.
In summary, Axsome Therapeutics’ earnings call highlighted strong revenue growth and product performance, driven by strategic execution and a robust R&D pipeline. While financial challenges persist, the company’s forward-looking guidance suggests a positive trajectory, aiming for cash flow positivity in the near future.