The FDA granted priority review to AXS-05
Pharma stock Axsome Therapeutics Inc (NASDAQ:AXSM) is soaring to all-time highs, up 19% at $177.13 at last glance, after the U.S. Food & Drug Administration (FDA) granted priority review to AXS-05 -- its Alzheimer's disease agitation drug. The news drew analyst praise, with Needham and TD Cowen reiterating "buy" ratings on the stock, and the former lifting its price target to $169 from $154.
On track for its largest single-day percentage gain since February, AXSM hit a record peak of $178.99 today. Should these gains hold, Axsome Therapeutics stock is looking to finish 2025 with over 100% year-to-date gain.
AXSM's typically quiet options pits have already seen 10 times its average daily options volume today. The January 2026 185-strike call is the most popular, with new positions opening there.
Some of today's jump could be attributed to short covering, as short interest represents 6.8% of the stock's available float. It would take shorts over five days to buy back their borrowed shares, at Axsome Therapeutics stock's average pace of trading.