TD Cowen has increased its 12-month price target on Axsome Therapeutics to $215 from $195 and maintained a Buy rating on the shares. The upward revision follows a period of strong commercial results and continued investment behind the company’s lead product, Auvelity.
Axsome reported Auvelity revenues of $155.1 million for the fourth quarter of 2025, matching the company’s prior pre-announcement. During the quarter the company dispensed roughly 225,000 prescriptions, an 8% increase from the preceding quarter driven largely by sustained uptake among primary care physicians.
The recent commercial traction has been reflected in the equity market. The stock has gained about 55% over the past six months, and Axsome now carries a market capitalization of $8.74 billion. On the top line, revenue increased 66% over the last 12 months, while the company sustained a gross profit margin of 92%.
Proprietary analysis available through InvestingPro indicates the shares may trade below their Fair Value, and four sell-side analysts have recently boosted earnings forecasts. Investors looking for deeper valuation context can find additional metrics and ProTips in the platform’s Pro Research Report.
Commercially, Axsome is expanding its field organization. The company disclosed a third sales force expansion for Auvelity - the largest to date - which it expects to complete in the second quarter. Management framed the hiring push as a move to support ongoing launch progress and to position for a potential new indication should regulatory approval follow.
Regulatory developments are also front and center. The U.S. Food and Drug Administration accepted Axsome’s supplemental new drug application for Auvelity in Alzheimer’s disease agitation and assigned it priority review in late December 2025. The agency set a PDUFA target action date of April 30, 2026 for its decision.
On modeling and market opportunity, TD Cowen projects peak Auvelity sales of roughly $2.5 billion in major depressive disorder. Company management has suggested the commercial opportunity in Alzheimer’s disease agitation could exceed that in major depressive disorder, though that view remains contingent on regulatory and market outcomes.
Separately, Axsome reported fourth-quarter results that topped analyst expectations. Despite the better-than-expected earnings, the company’s shares fell by more than 2% in pre-market trading following the release. The decline underscores that strong financial performance does not always translate immediately into positive near-term market reaction.
Overall, the analyst upgrade reflects confidence in Auvelity’s revenue trajectory, the company’s high gross margins and the potential upside from an additional indication. Near-term uncertainty remains tied to regulatory timing and market response to ongoing commercial investments.