Axsome Therapeutics Quietly Enters Market in IPO

By Chris Lange Updated Jan 13, 4:59PM EST · Published Nov 19, 12:15PM EST

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Axsome Therapeutics Quietly Enters Market in IPO — © Thinkstock

Axsome Therapeutics Inc. (NASDAQ: AXSM) entered the market on Thursday morning. The company announced the pricing of its offering as $9.00, which was below the previously announced expected pricing range of $11 to $13. The offering is for a total of roughly 5.67 million shares, with a 30-day overallotment option for an additional 850,000 shares. At this price the entire offering is valued up to $58.65 million.

The offering is expected to close on November 24, 2015, subject to customary closing conditions.

The sole book-running manager for the offering is Ladenburg Thalmann, while Cantor Fitzgerald is acting as lead manager and Brean Capital is acting as co-manager.

This clinical stage biopharmaceutical company develops novel therapies for the management of pain and other central nervous system (CNS) disorders. By focusing on this therapeutic area, Axsome is addressing significant and growing markets where current treatment options are limited or inadequate.

The product candidate portfolio includes two late-stage candidates, AXS-02 and AXS-05, which are being developed for multiple indications. Axsome recently initiated a Phase 3 trial with AXS-02 in complex regional pain syndrome and plan to initiate a Phase 3 trial with AXS-05 in treatment resistant depression in or before the first quarter of 2016.

The aim is to become a fully integrated biopharmaceutical company that develops and commercializes differentiated therapies that expand the treatment options available to caregivers and improve the lives of patients living with pain and other CNS disorders.

The company intends to use the proceeds to fund its clinical trials and for further development of other product candidates, working capital and general corporate purposes.

Shares of Axsome were last seen trading down 1% at $8.90, with a range of $8.90 to $9.44 on the day so far.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.