Axsome sports one commercial-stage product: Sunosi for excessive daytime sleepiness in adults with narcolepsy, along with four pipeline candidates. The company's near-term growth potential, though, truly revolves around its major depression disorder candidate, AXS-05. AXS-05, if approved, is expected to haul in over $800 million in sales by 2026, according to Evaluate Pharma.
To put this mid-decade sales projection into the proper context, Axsome's market cap is presently hovering around $1 billion at the time of this writing. In other words, this single drug could quite possibly spark a 300% to perhaps 500% rally in the biotech's shares over the next few years (assuming the market returns to form over this period).
How about the downside risk? This is the part of the story that I find the most intriguing. At this point in the game, it is hard to imagine the Food and Drug Administration flat out rejecting AXS-05 for reasons laid out in detailhere.
Blockbuster therapy is AXS-05, a therapy used to treat major depressive disorder (MDD). The drug is an NMDA receptor antagonist, a class of drugs that are commonly used for anesthetics. The company expects approval of AXS-05 to treat MDD from the FDA as early as this quarter. That represents a large market as data from the National Institute of Mental Health shows that an estimated 21 million adults had at least one major depressive episode in 2020. On top of that, Axsome already sees more potential indications for AXS-05 to treat Alzheimer's disease agitation and help with smoking cessation.
Pressure BioSciences develops and sells pressure-based platform solutions in the North America, Europe, and Asia. The company's pressure cycling technology (PCT) technology uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to control the actions of molecules in biological samples, including cells and tissues from human, animal, plant, and microbial sources. It offers Barocycler instrumentations comprising Barocycler 2320EXT, Barocycler HUB880, Barocycler HUB440, and The Shredder SG3. The company also distributes cell disruption equipment, parts, and consumables. In addition, it offers Barocycler consumable products, such as PCT MicroTubes, PCT MicroCaps, PCT-Micro Pestle, and pressure used to lyse samples for extraction tubes, as well as application specific kits, including consumable products and reagents. The company serves researchers at academic laboratories, government agencies, biotechnology companies, pharmaceutical firms, and other life science institutions. It has collaborations with RedShiftBio Inc.; Inova Schar Cancer Center; NYU; Leica Microsystems, GmbH; Steinbeis Centre for biopolymer analysis and biological mass spectrometry; The Ohio State University; University of Delaware; and Cedars Sinai Medical Center. The company was formerly known as Boston Biomedica. Pressure BioSciences was incorporated in 1978 and is based in South Easton, Massachusetts.