What SVB Says On Axsome's Strategy Review On Sunosi For Sleeping Disorder

Axsome Therapeutics Inc AXSM held an investor event to review its strategy with Sunosi, which is indicated for excessive daytime sleepiness (EDS) in narcolepsy and obstructive sleep apnea (OSA).
SVB Leerink says its view on Sunosi has not changed.
Jazz Pharmaceuticals Plc JAZZ struggled to differentiate Sunosi in a generic market, and SVB remains skeptical that Axsome will be able to do much better.
Related: Axsome Acquires Sleep Disorder Drug From Jazz Pharma, Expanding Its Neuroscience Portfolio.
Though the analyst believes the acquisition happened at a very attractive price, with good ROI on this investment to follow.
Management provided peak sales guidance for OSA/narcolepsy of $300 million -500 million, in range with SVB's estimate for Sunosi before the Jazz launch.
The analysts find it aggressive, with $150 million - $250 million more appropriate.
Management points to over $1 billion opportunity, including ADHD indication. This program is just starting in adults (with initial data in 2H23), which then would be followed by studies in kids, suggesting a long way for the potential important label expansion.
Price Action: AXSM shares are down 3.37% at $36.68 during the market session on the last check Wednesday.

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