More often than not, it is pretty tough for biotech companies to take their products to phase 3 of clinical trials and beyond. However, Axsome Therapeutics Inc (NASDAQ:AXSM) has proven to be an outlier in this regard and is currently involved in developing four candidates.
The products, which collectively target seven conditions, have gone through phase 2 and phase 2 investigative trials successfully. The company’s lead product is the antidepressant AXS 05 and has the potential of being a revolutionary new product in this particular space. However, it is interesting to note that AXS 05 may also have other functions.
The product can also be used to control the effects of agitation in patients who are suffering from Alzheimer’s diseases, for instance. However, it not all, and in this regard, it is worthwhile to note that the product has been found to be promising for treating nicotine addiction as well. However, there are other promising products in the company’s pipeline as well.
One of those is AXS 12, which is already an approved anti-depressant, and in its Phase 2 trials, it proved to be effective on Narcolepsy as well. In addition to that, AXS 07 is also a promising product, which is meant for treating arthritis and headaches.
On top of that, Axsome has also been given a license by pharmaceutical giant Pfizer to develop fibromyalgia treatment, known as AXS 14. The product was successful in Phase 2 and Phase 3 of clinical trials, but eventually, Pfizer pulled the plug on it since it wasn’t sure whether the product was going to be as potent as existing products. The worldwide opportunity for Axsome amounts to as much as $60 billion as per figures pertaining to the middle of the decade.
The company also plans to send in New Drug Applications for ASX 05 and AXS 07 to the FDA. At this point, Axsome has a cash balance of $200 million, and it should be noted that the company’s costs per year on research and development stands at $130 million. It is a promising company and a stock that could be added to portfolios for investors who are looking for promising biotech companies.