UBS Bullish On This Depression Drug Maker, Says Alzheimer's Agitation Data Is Attractive Catalyst
Portfolio Pulse from Vandana Singh
UBS initiated coverage on Axsome Therapeutics Inc (AXSM) with a Buy rating and a price target of $111, citing bullish prospects for its depression drug Auvelity and pipeline opportunities. UBS anticipates Auvelity could generate $1 billion in sales by 2030. Positive Phase 3 trial data for Alzheimer's Agitation and Narcolepsy could further boost AXSM's stock. The sector sees increased investor interest after Bristol Myers Squibb (BMY) and AbbVie (ABBV) made significant acquisitions. Axsome's Q4 2023 revenue is preliminarily reported at $71 million, with full-year revenue at $204 million.
February 06, 2024 | 7:19 pm
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AbbVie's acquisition of Cerevel Therapeutics for approximately $8.7 billion further indicates the growing interest in the central nervous system therapy sector.
AbbVie's strategic acquisition of Cerevel Therapeutics highlights the company's focus on strengthening its CNS therapy portfolio, likely positively impacting its stock value.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
UBS initiated coverage on Axsome Therapeutics with a Buy rating and a $111 price target, highlighting the potential of its depression drug Auvelity and positive pipeline developments.
UBS's initiation of coverage with a Buy rating and a high price target, combined with positive pipeline developments and preliminary revenue reports, suggest a strong short-term upside potential for AXSM.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Bristol Myers Squibb's acquisition of Karuna Therapeutics for $14.0 billion highlights increased investor interest in the central nervous system therapy sector.
The acquisition demonstrates BMY's commitment to expanding its portfolio in the CNS therapy sector, potentially increasing its stock's attractiveness to investors.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70