Axsome Therapeutics building momentum Axsome Therapeutics Inc (AXSM)
I have been in this spot trade since $50.77. We are now at $72.93. I have much higher targets as you can see from the chart.
This is a long term trade looking to hold for 12 – 24 months however feel that something is going to happen within 6 – 12 months based on the chart.
- Forming pennant on chart and RSI. Potential for breakout.
- Steadily increasing OBV (On Balance Volume) demonstrating continued interested in the trade.
- Stochastic Momentum indicator (not included on chart is driving upwards on the weekly).
- You can see the orange boxes which act as accumulation zones with double bottoms before the larger move occurs.
- We are above the 200 week and using it as support and we are above the 200 day also using it as support so we have limited downside with strong support.
This purchase has been helped me recognized that Pharma appear to companies perform much better when the general market is in decline. They appear to be inverse risk on but also make small advances during risk on periods. It’s a market that I am becoming increasingly interested in as a diversifier and value lock. Obviously this is a smaller pharma company with higher risk in the trade, however if I was Regeneron or Johnson and Johnson and I see Axsome’s patents, drug offerings and the general population they are targeting with depression, Alzheimer’s and fibromyalgia, seems like a no brainer to buy them out.
Fundamentals:
AXSM are a Small Bio-Pharma company with market cap of $3.17 Billon. In August 2022 Auvelity Anti-Depressants was FDA approved & is the only rapid-acting oral medicine for MDD with labelling describing statistically significant antidepressant efficacy by one week.
AXSM received Breakthrough Therapy designation from the FDA for an Alzheimer's disease drug development and are at the NDA phase for developing a drug for acute treatment of migraine. AXSM are also developing a treatment for narcolepsy and separately for fibromyalgia.
All in, AXSM's offerings are building momentum. They have developed the fastest acting anti-depressant drug and are bringing it to market, and have a four other drugs in development, all of which have a large patient base. The company would be ripe for a buyout.
