Axsome Therapeutics (NASDAQ:AXSM) stock is on the rise Tuesday as the company edges closer to its first drug approval from the U.S. Food and Drug Administration (FDA).
The drug in question is AXS-05. It’s designed to treat major depressive disorder by blocking a receptor in the brain. The company also hopes to use it as a treatment for Alzheimer’s disease and for those trying to quit smoking.
Axsome Therapeutics has agreed to the requirements of the FDA for bringing AXS-05 to market. While it’s unclear what those requirements are, this change appears to mean the company will likely gain approval for its drug.
We still don’t know when exactly the FDA will weigh in on Axsome Therapeutics’ depression drug. The current expectation is for the agency to come to a decision before the end of the current quarter, reports Investor’s Business Daily.
Mizuho Securities analysts are expecting the FDA to approve AXS-05. The firm also holds a “buy” rating for AXSM stock and a price target of $51 per share. For the record, AXSM stock was trading at $40.25 per share as of this writing.
No matter the case, today’s news has investors excited about the possible approval of AXS-05. As a result, shares of AXSM stock are seeing heavy trading today. This has more than 7 million shares of the stock changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 735,000 shares.
AXSM stock is up 23.4% as of noon Tuesday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.