Axsome falls on depression drug's trial setback

Drugmaker Axsome Therapeutics' AXSM.O shares fall 3.1% to $113 premarket

AXSM says it will narrow the focus of a late-stage study of its depression drug after it did not show statistically significant improvement in the overall group of patients

However, it helped reduce symptoms in some patients with major depressive disorder who also suffered from excessive daytime sleepiness (EDS), a common symptom of MDD

AXSM plans to start a larger late-stage study of the drug in MDD patients with EDS this year

Solriamfetol is already approved in the U.S. to improve wakefulness in adults with excessive sleepiness from sleep disorders, narcolepsy and sleep apnea

Brokerage Truist Securities says solriamfetol could potentially address the MDD demographic who may be complementary to those addressed by Auvelity, AXSM's FDA-approved treatment for MDD

As of last close, AXSM has risen 46% in the past 12 months