Axsome Therapeutics, Inc. (AXSM): A Bull Case Theory

We came across a bullish thesis on Axsome Therapeutics, Inc. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on AXSM. Axsome Therapeutics, Inc.'s share was trading at $163.19 as of February 26th. AXSM’s forward P/E was 370.37 according to Yahoo Finance.

Axsome Therapeutics, Inc., a biopharmaceutical company, develops and delivers novel therapies for the management of central nervous system disorders in the United States. Axsome Therapeutics, is emerging as a differentiated neuro-focused biotech with multiple commercial assets and a late-stage pipeline targeting large, underserved markets. Unlike many single-asset peers, Axsome already has three products on the market, providing a diversified and rapidly expanding revenue base.

Its lead product, Auvelity for major depressive disorder, is the primary growth engine, with sales rising 69% in 3rd quarter and management projecting peak sales of roughly $2 billion—around four times its current run-rate. Sunosi, indicated for sleep apnea, posted 35% growth last quarter, while Symbravo for acute migraines has recently launched and is expected to scale toward a $400 million peak opportunity, similar to Sunosi’s long-term potential.

The pipeline further strengthens the growth narrative. AXS-12 for narcolepsy is viewed as a potential $500 million product, while AXS-05 for Alzheimer’s agitation, with possible approval in the first half of 2026, could exceed $1.5 billion in peak sales. Another Phase III candidate targeting ADHD and related indications may represent an additional $1 billion opportunity.

Commercial momentum is already evident, with overall sales rising 63% and 72% in the past two quarters, and analysts forecasting 50%+ growth next year. While profitability remains ahead, breakeven is expected in 2026 as scale improves. After consolidating for nine months, the stock has broken to new highs, suggesting improving sentiment. With accelerating revenues and multiple regulatory catalysts ahead, Axsome presents a compelling growth story with meaningful upside potential.

Previously, we covered a bullish thesis on Crispr Therapeutics (CRSP) by MADD-Scientis in March 2025, which highlighted the commercial potential of Casgevy, strong net cash position, and upside from its broader gene-editing pipeline. Crispr Therapeutics’s stock price has appreciated by approximately 50.69% since our coverage. @MoneyShow shares a similar view but emphasizes on Axsome’s diversified commercial base and accelerating revenue growth within neuro-focused therapeutics.

Axsome Therapeutics, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held AXSM at the end of the third quarter which was 45 in the previous quarter. While we acknowledge the risk and potential of AXSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXSM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.