Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Axsome's depression drug enters competitive market after U.S. approval

Stock Markets Aug 19, 2022 10:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Signage is seen outside of the Food and Drug Administration (FDA) headquarters in White Oak, Maryland, U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo/File Photo 2/2
 
JNJ
+1.48%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AXSM
+3.60%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Amruta Khandekar

(Reuters) -Axsome Therapeutics Inc on Friday gained U.S. approval for its treatment for depression, giving more than 20 million Americans affected by the disorder a new option in a market crowded by older drugs.

Shares of the U.S.-based company, which expects to launch the drug in the fourth quarter, surged 25% in early trade.

The drug, Auvelity, is a new class of treatment that reduces the symptoms of depression as early as one week, giving it a potential edge over older antidepressants, which can take up to six weeks to show effect.

The treatment has "blockbuster" potential, but the company will have to make significant investment to build the market for a new branded therapy in a field full of generic therapies, Guggenheim analyst Yatin Suneja wrote in a client note.

Major depressive disorder (MDD), or clinical depression, is characterized by persistent feelings of sadness and suicidal thoughts. Axsome estimates that the prevalence of depression rose three-fold since the start of the COVID-19 pandemic.

Newer depression treatments are few and far between, with Johnson & Johnson (NYSE:JNJ)'s nasal spray Spravato being the rare new drug to be approved in 2019 after more than 30 years.

Axsome's therapy targets several neurotransmitters including glutamate and had succeeded in a late-stage trial in 2019. The long-waited approval for the therapy comes after the agency found deficiencies in the company's application last year and extended its review of the drug.

Axsome expects the ability of patients to take the pill safely at home to boost its uptake.

The company said it was finalizing a list price for the treatment and intended to start discussions with insurers in the coming weeks.

The drug comes with a boxed warning of increased risk of suicidal thoughts and behaviors in children and young adult patients.

Axsome's depression drug enters competitive market after U.S. approval
 

Related Articles

Today's Most Important Buybacks
Today's Most Important Buybacks By Investing.com - Oct 04, 2022 1

By Davit Kirakosyan FedEx Corp. (NYSE:FDX) shares rose more than 5% today following the company’s announced accelerated share repurchase agreement (ASR) with Morgan Stanley...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
G D
G D Aug 19, 2022 8:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hopefully they succeed.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email