AXSM: Highlights from the RBC Healthcare Conference

Research evidence excerpt

AXSM: Highlights from the RBC Healthcare Conference

Axsome Therapeutics Inc

Axsome Therapeutics, Inc.

Valuation

Our $302 price target blends DCF (using a 10.5% discount rate and a 1% terminal growth rate) and earnings multiple (25x on 2029E

adjusted EPS discounted at 10%) analyses, comparable to other commercial-stage biotechs with marketed products but potential

patent cliffs in the medium term. Our price target supports our Outperform rating.

Risks to rating and price target

Risks include emergence of unexpected safety signals, failure to successfully commercialize its products in a competitive

environment, inability to maintain a sales force, entry of generic competitors, failure of clinical trials to demonstrate sufficient

efficacy to warrant continued development or regulatory submission, failure to garner regulatory approval, failure to manufacture

sufficient material in accordance with regulatory standards, and an inability to finance ongoing operations given significant outlays

on R&D and SG&A.

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