Axsome Therapeutics Stock Tumbles As Alzheimer's Studies Reveal Mixed Results: Retail Sentiment Remains Bullish

Axsome still plans to submit its AXS-05 drug to the U.S. FDA for approval.

Shares of Axsome Therapeutics (AXSM) fell over 11% in Monday morning trade after it posted mixed results of its Alzheimer’s study.

The New York-based biopharmaceutical company ran two studies for the treatment of agitation – a common symptom of Alzheimer’s disease – using its AXS-05 drug.

In the first study that compared AXS-05’s performance to a placebo, the patients in this control group showed an over threefold lower risk of relapsing into agitation.

However, its second study revealed a 13.8-point improvement in symptoms compared to the placebo group’s 12.6-point improvement.

The company said it still plans to apply to the U.S. Food and Drug Administration (FDA) for approval of its drug.

“Axsome plans to submit an NDA for AXS-05 in Alzheimer’s disease agitation to the FDA in the second half of 2025, based on the efficacy and safety data from the above controlled and long-term studies,” the company said.

“AXS-05 has been granted Breakthrough Therapy designation for the treatment of Alzheimer’s disease agitation,” it added.

Following the news of Axsome’s Alzheimer’s study outcome, the stock emerged as one of the top trending tickers on Stocktwits. Retail sentiment was in the ‘extremely bullish’ territory (95/100), rising from ‘neutral’ a day ago.

Message volume, too, rose significantly to ‘extremely high’ from ‘low’ a day ago.

Axsome’s stock, however, fell as much as over 11% in Monday morning trade before recovering slightly.

Retail traders on Stocktwits remained bullish on the stock.

One user expressed optimism about the FDA approving Axsome’s Alzheimer’s drug, adding that “smart money” will come back to the stock.

Axsome’s shares have fallen by over 18% over the past month. Year-to-date, however, the stock is up nearly 4.5%.

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