Axsome Therapeutics Clocks Better Than Expected Q1 Sales, Depression Drug Sees Improved Coverage

Axsome Therapeutics Inc AXSM reported Q1 revenue of $94.6 million, consisting of net product sales of $28.6 million, license revenue of $65.7 million, and royalty revenue of $0.3 million. The analysts estimated sales of $26.07 million.

The company reported an EPS loss of $(0.26), beating the consensus of $(1.04).

Sales from the depression drug, Auvelity were $15.7 million for the first quarter of 2023. The Q1 was the first full quarter of sales for Auvelity, launched in October 2022. 

Approximately 31,000 prescriptions were reported for Auvelity. William Blair estimated Auvelity sales of $10.4 million.

The analyst notes that an approximate Auvelity script count available on Bloomberg Symphony suggests continued growth in script count and growth trajectory closely tracking that of blockbuster psychiatry drugs like Rexulti and Trintellix.

Sunosi's revenue from U.S. sales came in at $12.9 million, lower than our estimate of $16.5 million. William Blair says the U.S. performance of Sunosi is still growing 4% quarter-over-quarter on a total prescription volume basis.

Axsome announced that payer coverage across all channels is 65% of all covered lives. Approximately two-thirds of anti-depressant scripts are covered by commercial payers per management commentary, and 40% of covered lives currently have access to Auvelity reimbursement.

The analyst reiterates the Outperform rating. The mechanism of Auvelity is de-risked but is significantly differentiated from pipeline products in the neurology space, writes William Blair.

Price Action: AXSM shares are up 2.88% at $75.87 on the last check Monday.