Proactive Investors - Run By Investors For Investors

Axsome Therapeutics extends gains after raising $23.3M to fund late stage depression drug development

AXS-05, a key drug in Axsome’s pipeline, significantly improved symptoms of depression after six weeks in a trial evaluating 80 adults
A woman clutching her head
The New York-based biotech is developing novel therapies for central nervous system disorders

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.

READ: Axsome Therapeutics soars after unveiling rosy trial results for depression drug

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]

Follow her on Twitter@UttaraProactive 

View full AXSM profile View Profile

Axsome Therapeutics Inc Timeline

Related Articles

PT exercises
December 19 2018
The Californian company is a bet on an industry that is in need of transformation
June 07 2019
Geremy Thomas, founder and chief executive of Sativa, said the company has "delivered expeditiously on its investment promise to the market"
LX2 analyzer
May 07 2019
Armed with promising study results and proven technology, LexaGene is getting ready to launch the LX2 Genetic Analyzer to underserved markets valued at an estimated US$40 billion
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use