$AXSM

B. Riley analyst Mayank Mamtani highlighted top biotech picks ahead of 3Q26 earnings, including Axsome Therapeutics (AXSM), Cytokinetics (CYTK), Eton Pharmaceuticals (ETON), Harrow (HROW), TG Therapeutics (TGTX), and Zymeworks (ZYME). The analyst provided price targets and revenue projections for each, noting macroeconomic challenges for small and mid-cap biotech stocks.

Axsome Therapeutics (NASDAQ:AXSM) presented at the H.C. Wainwright Conference, highlighting growth for Auvelity, with estimated peak sales of over $8 billion. Sunosi and SYMBRAVO also showed potential, with peak sales estimates of $300M-$500M and $500M-$1B, respectively. The company has multiple pipeline milestones and expects annual NDA filings through 2031. Axsome reported $320M in cash and expects profitability soon.

Axsome Therapeutics expects AUVELITY prescriptions to grow over 1-2 quarters, with encouraging physician feedback. The company aims for $8B peak sales, including $4B each in major depressive disorder and Alzheimer's disease agitation. Axsome has expanded its commercial team and expects Q3 results to show launch progress. Management highlighted pipeline developments and cost expectations.

Piper Sandler maintained an Overweight rating on Axsome Therapeutics with a $258 price target, implying a 20.4% upside from the Sep 17 close of $214.28. The firm cited strong new prescription growth and a positive future outlook for the company, driven by increased demand in the MDD segment and early contributions from Alzheimer's disease agitation treatments.

Axsome Therapeutics (AXSM) and Revolution Medicines (RVMD) present distinct investment opportunities. Axsome, with three marketed CNS drugs, reported $638.5M revenue in 2025 but a net loss of $183.2M. Revolution, a clinical-stage oncology firm, had no revenue and a $1.1B net loss. Axsome trades at a premium, while Revolution's valuation is harder to assess. The author prefers Revolution due to its potential FDA approval for a pancreatic cancer drug in 2026.

AXSM reported Q2 revenue growth of 46% YoY to $218.4M, driven by Auvelity's performance. The company has seven ongoing trials and an NDA under review, with product exclusivity extending into the 2030s and 2040s. This data was presented at the H.C. Wainwright 28th Annual Global Investment Conference.

Axsome Therapeutics (AXSM) dosed the first patient in a Phase 3 trial (SUMMIT) for AXS-05 in smoking cessation. The trial compares AXS-05 to bupropion and placebo, with abstinence at week 12 as the primary endpoint. Success could expand AXS-05's use and leverage its patent estate until 2043. Analysts project $2.5B revenue and $908.3M earnings by 2029, but risks include cash burn and trial execution.

Axsome Therapeutics (AXSM) shares rose 6% after Mizuho analyst cited strong August prescription data for Auvelity, its drug for Alzheimer's agitation. New prescriptions increased 32% from July. The analyst maintains an 'Outperform' rating with a $316 price target. Auvelity's Alzheimer's launch is key to the company's growth, with Q2 sales of $180.3M, up 51% YoY.

Needham & Company identified five biotech stocks as top picks for the second half of 2026, all with Buy ratings. Key catalysts include clinical data readouts for Praxia Therapeutics (PRAX), Acadia Pharmaceuticals (ACAD), Biogen (BIIB), Axsome Therapeutics (AXSM), and Alkermes (ALKS). Price targets and analyst upgrades were also noted for these companies.

Analysts maintained Buy ratings on Zymeworks (ZYME), Axsome Therapeutics (AXSM), and Ocugen (OCGN). ZYME's PT is $38 (Citi) and $40.20 (consensus). AXSM's PT is $256 (Wells Fargo) and $291 (consensus). OCGN's PT is $12 (Noble Financial) and $10.13 (consensus). All have Strong Buy consensus.