Shares of Axsome Therapeutics Inc (NASDAQ:AXSM) extended gains in premarket trade Tuesday after the biopharmaceutical company announced that it raised $23.3 million to fund the ongoing clinical development of its late-stage drug candidates.
Shares of the New York-based biotech had soared Monday after the company unveiled rosy trial results for a drug that addresses depression.
AXS-05, a key drug in Axsome’s pipeline which consists of dextromethorpan and bupropion, significantly improved symptoms of depression in a trial evaluating 80 adults after six weeks compared to the anti-depressive bupropion on its own. The company said AXS-05 was safe and well tolerated with no serious adverse events.
The results were met with enthusiasm by investors who sent Axsome shares up nearly 167% on Monday afternoon. Shares were up again nearly 17.8% to $8.09 in premarket trade Tuesday.
The biotech said it raised approximately $23.3 million through the sale of 2,881,066 shares under its existing at-the-market (ATM) facility with Leerink Partners LLC.
Axsome said it intends to use the proceeds from the offering to “continue to fund the ongoing clinical development of its late stage product candidates.”
Contact Uttara Choudhury at [email protected]