Axsome shares surge 75% after depression drug reduces symptoms in late-stage study

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Axsome shares surge 75% after depression drug reduces symptoms in late-stage study
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Axsome depression drug meets late-stage study goal, shares soar 56%

- Axsome Therapeutics Inc said on Monday its drug succeeded in reducing symptoms of major depressive disorder in a late-stage trial, taking the company a step closer to entering a multi-billion dollar market for depression treatments.Major depressive disorder is a chronic condition that makes patients feel low, experience guilt and worthlessness and, in some cases, may lead to suicide.

According to the National Institutes of Health, an estimated 7.1% of U.S. adults, or approximately 17 million, experience MDD each year. Axsome said its oral tablet, AXS-05, improves the communication between brain cells and increases levels of serotonin, noradrenaline and dopamine, all of which help regulate mood.

Suntrust Robinson Humphrey analyst Joon Lee said the drug's magnitude and rapidity of effect as well as the breadth of positive effects across several secondary goals was impressive.

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