AXSM

Axsome Therapeutics (AXSM) reported strong first-half 2026 results with its lead drug Auvelity generating $333 million in sales, up 54.2% year-over-year. The company is expanding Auvelity's market reach through FDA approval for Alzheimer's agitation treatment and a phase III smoking cessation study. Additional revenue support comes from Sunosi ($66.5M sales) and newly launched Symbravo ($6.3M sales), though the company faces intense competition in the CNS and migraine markets.

The article recommends two underrated biotech stocks: Axsome Therapeutics, which is experiencing strong growth with its drug Auvelity (51% YoY sales growth) and has a promising pipeline including potential new indications; and Exelixis, a cancer-focused biotech with a dominant drug Cabometyx protected until at least 2030, plus encouraging progress on pipeline candidates like zanzalintinib.

Axsome Therapeutics' Auvelity drug is expanding beyond major depressive disorder into Alzheimer's agitation treatment, with Q2 sales reaching $180.3 million (up 51% YoY) and new patient starts among seniors jumping 126% post-launch. The company projects Auvelity could eventually generate $8 billion in annual peak sales, with additional commercial products and pipeline candidates potentially transforming Axsome into a major neuroscience pharmaceutical company by 2030.