AXSM

The article highlights two non-AI healthcare growth stocks worth holding for the next decade: Axsome Therapeutics, a biotech company with promising pipeline expansion including Auvelity's label expansion into Alzheimer's treatment, and Eli Lilly, which dominates the weight loss and diabetes markets with strong revenue and earnings growth. Both companies are positioned to deliver solid long-term returns through patent protection and diversified product pipelines.

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.

Four central nervous system (CNS) pharmaceutical companies—Axsome Therapeutics, Neurocrine Biosciences, Alkermes, and Acadia Pharmaceuticals—are highlighted as relevant investment opportunities ahead of World Mental Health Day. All four companies carry a Zacks Rank #3 (Hold) rating and have strong CNS portfolios with meaningful revenue growth in H1 2026, supported by expanding pipelines addressing psychiatric and neurological disorders.

Over 200 companies are advancing more than 240 pipeline Alzheimer's disease therapies across various clinical development stages. The market is being driven by an aging population, rising disease prevalence, and the emergence of disease-modifying therapies that enable earlier intervention and biomarker-guided care. Two therapies have recently received FDA approval: KISUNLA (donanemab) from Eli Lilly and LEQEMBI (lecanemab-irmb) from Eisai/Biogen, both targeting amyloid plaques to slow disease progression.

The global migraine market is projected to grow at a 6% CAGR through 2036, reaching expansion driven by rising prevalence, improved diagnosis rates, and development of novel therapies beyond CGRP inhibitors. Key emerging treatments include PACAP-targeted therapies, TRPA1 antagonists, and next-generation neuromuscular approaches. The market was valued at USD 8.3 billion in 2025 across seven major markets, with the United States leading.

Acadia Pharmaceuticals generated $576 million in first-half 2026 revenues, up 13% year-over-year, and raised its full-year 2026 guidance to $1.24-$1.30 billion. Nuplazid sales grew 7% to $350.1 million with patent protection until February 2038, while Daybue sales jumped 25% to $226 million, driven by the new STIX formulation and EU approval for Rett syndrome treatment. However, ACAD shares have underperformed the industry by 27.3% year-to-date and face increasing competition from rivals like Axsome and Neurogene.