Axsome's Strategy on Payer Coverage Slowly Pays Off, Depression Drug Sales Show Growth

Axsome Therapeutics Inc AXSM reported Q3 revenues of $57.8 million, up 244% Y/Y, beating the consensus of $54.75 million.

Auvelity (oral antidepressant) net product sales were $37.7 million, representing a 36% sequential increase versus the second quarter of 2023. 

Approximately 69,000 prescriptions were reported for Auvelity in Q3, up 30% Q/Q.

The previously announced expansion of the Auvelity sales force from 162 to 260 representatives is underway and expected to be completed in Q4 FY23. 

Also Read: FDA's Rejection of Sage/Biogen's Zuranolone Boosts Prospects for Axsome's Auvelity, Analyst Says.

Sunosi (sleep disorder) net product revenue was $20.1 million for Q3, up 20%.

Q3 U.S. Sunosi total prescriptions increased by 16% Y/Y and sequentially by 5%.

The company reported a net loss of $(1.32) compared to $(1.07) per share a year ago, missing the consensus of $(1.20).

The Q3 net loss reflects $18.0 million in non-cash charges.

William Blair writes that Q2 saw a gross to net (GTN) discount percentage in the mid-50% based on management commentary and revenue compared to script counts, with management previously suggesting the GTN will remain in the high 50%. 

On the second-quarter earnings call, Axsome announced that payer coverage increased modestly to 68% of all covered lives (46% commercial), and William Blair says that securing payer coverage will be a major theme with the ongoing launch. 

Investor questions will continue, given the admittedly modest add of covered lives in the prior quarter. 

This trend continues in the third quarter as coverage has increased slightly to 70% of covered lives, including 48% of covered commercial lives.

Price Action: AXSM shares are down 3.23% at $63.04 on the last check Monday.