Axsome Therapeutics Q1 2026 Earnings Call - Auvelity Alzheimer’s Approval Drives $8B Peak Sales Outlook

Andrew Stein, Analyst, Jefferies7: Good morning, welcome to the Axsome Therapeutics first quarter 2026 earnings conference call. My name is Kevin. I’ll be your operator for today’s call. At this time, all participants are in listen-only mode. Later, there’ll be a question-and-answer session, and instructions will be given at that time. Please note this call is being recorded. I will now turn the call over to Ashley Dong, Senior Director of Investor Relations. Ashley, please go ahead.

Ashley Dong, Senior Director of Investor Relations, Axsome Therapeutics: Thank you. Good morning, and thank you for joining Axsome’s 1st quarter 2026 earnings conference call. With us today are Dr. Herriot Tabuteau, our Chief Executive Officer, Nick Pizzie, our Chief Financial Officer, and Ari Maizel, our Chief Commercial Officer, who will begin our call with prepared remarks. Mark Jacobson, our Chief Operating Officer, and Hunter Murdock, our General Counsel, will also be available for Q&A. Please note that today’s discussion includes forward-looking statements regarding our financial performance, commercial strategies, and operational plans, including research, development, and regulatory activities. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially. Please refer to our SEC filings, including our quarterly and annual reports, for a description of these and other risks.

You are cautioned not to rely on these forward-looking statements, which are made only as of today, and the company disclaims any obligation to update such statements. With that, I’ll hand it over to Herriot.

Andrew Stein, Analyst, Jefferies0: Thank you, Ashley, good morning, everyone. In the first quarter of 2026, Axsome delivered strong year-over-year growth and execution across the business. This performance was driven by our commercial products and the advancement and expansion of our R&D pipeline, which is now composed of six innovative, potentially first-in-class or best-in-class product candidates. Starting with our commercial business, total revenue for our three marketed products was $191 million, representing year-over-year growth of 57%, driven by Auvelity and Sunosi with contribution from Symbravo. Building on the strong clinical profile of our marketed products, in the quarter, we substantially expanded the sales force for Auvelity, finalized plans for the expansion of the Symbravo sales force, and increased covered lives and quality of coverage for all of our marketed products. These initiatives will support continued strong revenue growth of the base business this year and beyond.

Last week, we received FDA approval of Auvelity for the treatment of agitation associated with Alzheimer’s disease, an indication which received FDA breakthrough therapy designation and priority review. This approval introduces a first-in-class treatment option for this highly prevalent, debilitating, and critically underserved neuropsychiatric condition. It marks an important milestone for the millions of patients living with Alzheimer’s disease, their families, and their caregivers. Auvelity has now been approved in two indications that received FDA breakthrough therapy designation and were granted FDA priority review. The approval in Alzheimer’s disease agitation, combined with the health of the MDD business and the recent augmentation of the Auvelity commercial infrastructure, provide us with a clear line of sight to Auvelity’s market potential. Ari will provide an update to our peak sales estimate for the Auvelity franchise based on these developments.

The approval in Alzheimer’s disease agitation is a testament to our research and development productivity. Since the start of this year, we have continued to advance and expand the rest of our industry-leading pipeline with a focus on developing first-in-class and best-in-class products. On the regulatory front, following the FDA approval of Auvelity last week, we are pleased to share that we have submitted our NDA for AXS-12 for the treatment of cataplexy and narcolepsy. Clinically, our ongoing trials continue to progress, and we will be starting multiple phase III trials within the next few months. We recently expanded our pipeline further with the addition of AXS-20, a potentially first-in-class pre-phase III PDE10A inhibitor for schizophrenia and Tourette syndrome. I will discuss each of these developments in detail later in the call.

All in all, Axsome is advancing the commercialization of three differentiated marketed medicines across four highly prevalent indications, as well as an innovative pipeline of potentially first-in-class and best-in-class medicines that includes six product candidates targeting 10 different highly burdensome conditions in psychiatry and neurology. Looking ahead, Axsome is well positioned to realize robust growth driven by execution across our commercial portfolio for long-term Auvelity in Alzheimer’s disease agitation and the advancement of the rest of our neuroscience pipeline. With that, I’ll hand the call over to Nick to review our financial results for the quarter.

Andrew Stein, Analyst, Jefferies6: Thanks, Herriot, and good morning, everyone. Our financial performance in the first quarter was strong, with our three commercial products delivering continued double-digit revenue growth. Total revenue for the quarter was $191.2 million, a 57% increase compared to the first quarter of 2025. We expect revenue growth to continue in 2026. Auvelity achieved net product revenue of $153.2 million in the quarter, up 59% compared to the first quarter of 2025. Sunosi net product revenue for the quarter was $33.9 million, a 34% increase compared to the first quarter of 2025. Sunosi revenue consisted of $32.6 million in net product sales and $1.3 million in royalty revenue associated with Sunosi sales in out-licensed territories.

Net sales for Symbravo were $4.1 million in the quarter. Auvelity and Sunosi gross-to-net discounts for the first quarter of 2026 were both in the low to mid-50s range. We anticipate the gross-to-net discounts for both products to improve throughout the year, consistent with prior year trends. Symbravo gross-to-net discount for the quarter was in the high 70% range, and we continue to expect it to remain elevated over the near term as access continues to evolve and awareness continues to build. Turning now to expenses. Total cost of revenue were $14.7 million compared to $9.8 million for the first quarter of 2025. Our research and development expenses were $52.7 million in the quarter, compared to $44.8 million for the first quarter of 2025.

The increase in R&D spend primarily reflects a one-time acquisition-related expense booked in the quarter. Our selling, general and administrative expenses were $185 million for the quarter, compared to $120.8 million for the first quarter of 2025. The increase was primarily driven by the acceleration of pre-launch activities for Auvelity in Alzheimer’s disease agitation and commercialization activities for Auvelity, which included the national direct-to-consumer advertising campaign and sales force expansion, along with commercial activities for Symbravo. Net loss for the quarter was $64.5 million or $1.26 per share, compared to a net loss of $59.4 million or $1.22 per share for the first quarter of 2025.

The $64.5 million net loss in the quarter includes $23.4 million in stock-based compensation expense. Our balance sheet remains strong. We ended the first quarter with $305 million in cash and cash equivalents, compared to $323 million as of the end of last year. Our overall financial performance reflects continued top line revenue growth and improving operating leverage driven by disciplined commercial execution. We anticipate that our current cash balance is sufficient to fund our operations into cash flow positivity based on our current operating plan. With that, I’d like to turn the call over now to Ari, who will provide additional details on the key drivers behind our medicines and the broader commercial performance of the business.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Thank you, Nick. The first quarter of 2026 was a pivotal period for Axsome’s brands, reflected in ongoing demand for our medicines, meaningful improvements in payer coverage and sales force expansion activities. Our promotional efforts across HCP and patient audiences, combined with a broadening commercial infrastructure, will support Axsome’s sales objectives throughout 2026. Starting with Auvelity, more than 223,000 prescriptions were written in the quarter, representing 35% year-over-year growth and remaining consistent with the prior quarter. By comparison, the antidepressant market grew 1% year-over-year and declined by 1% compared to Q4 2025. Auvelity performance in the quarter was highlighted by a continued shift toward earlier line use, with first line/first switch prescriptions increasing to 56% of overall demand. Primary care adoption also expanded in the quarter, now representing 35% of total Auvelity prescribers.

These trends reflect meaningful improvements in market access over the last 2 years, broadened awareness of the brand driven by our national direct-to-consumer campaign and our concentrated effort in expanding use among primary care providers, a key driver of earlier line utilization and an important foundation to support early trial in connection with the upcoming Alzheimer’s disease agitation launch. Additionally, more than 5,500 new prescribers were activated in the quarter, bringing the total number of unique prescribers for Auvelity since launch to approximately 60,000. We continue to make important progress with formulary access for Auvelity. Commercial coverage is at 78% and alongside Medicare and Medicaid coverage at 100%, total coverage is now at 86% of all lives across channels, establishing a strong foundation of access for Auvelity in advance of the launch in Alzheimer’s disease agitation.

We expect both the quantity and quality of coverage to continue to expand and improve. Auvelity’s growth to date in the depression market continues to reflect its compelling clinical profile, highlighted by rapid and durable symptom improvement and a distinctly favorable safety and tolerability profile. Last week’s FDA approval of Auvelity as a treatment for agitation associated with dementia due to Alzheimer’s disease is a significant advancement for patients and a major milestone for the brand. We are very pleased with the product label, which provides compelling clinical information regarding Auvelity’s impact on agitation for Alzheimer’s patients. Auvelity is a first-in-class treatment for this patient population, demonstrating rapid and durable symptom improvement with a favorable safety and tolerability profile. Auvelity is the only approved treatment for Alzheimer’s disease agitation with efficacy on symptom relapse demonstrated in long-term trials.

In a short-term study, the most common adverse reactions were dizziness and dyspepsia. Only 1.3% of patients discontinued treatment due to an adverse reaction, the same rate as placebo. In market research, HCPs rate Auvelity’s clinical profile on Alzheimer’s disease agitation as highly compelling from both an efficacy and safety perspective, with clear potential for first-line use in appropriate patients. We are expanding the Auvelity sales team to approximately 630 representatives, enabling Axsome to reach 68,000 HCP targets across primary care, psychiatry, neurology, and geriatric specialists who treat both MDD and Alzheimer’s agitation patients across community and long-term care settings. Our expansion efforts are substantially complete, positioning us well for the commercial launch in June.

We believe Auvelity has the potential to play a significant role in the treatment of Alzheimer’s disease agitation and together with the MDD indication, further broadens its use across serious neuropsychiatric conditions. Auvelity’s expanded sales force and strong foundation of coverage position the brand to drive growth across both indications throughout the second half of 2026. Taking into account the recent label expansion in Alzheimer’s disease agitation, the clinical profile in this indication, the health and trajectory of the MDD business, and recent investments in our sales infrastructure, we are now able to update our peak sales outlook for the product. We now believe Auvelity has the potential to generate at least $8 billion in annual revenue at peak, with approximately equal contribution from each indication.

Over the extended life of the product, we see a clear path to achieving this growth potential, supported by the underlying fundamentals of the business as we continue to scale. Turning now to Symbravo. More than 17,000 total prescriptions were written in the quarter, representing 36% growth versus Q4 2025. More than 5,000 new patients started Symbravo treatment in the quarter. Neurology specialists accounted for approximately 60% of total writers in the quarter, with primary care representing approximately 32%, an increase from 20% in the 1st quarter of launch. While headache specialists will remain a critical prescriber segment for Symbravo, the increase in primary care prescribing is an encouraging signal of Symbravo’s potential and reinforces the early experience with Symbravo as a safe and tolerable acute migraine treatment that provides fast migraine pain improvement sustained through 24 and 48 hours.

Based on Symbravo’s growth within its launch year and increasing demand for education of the only branded multi-mechanistic acute migraine treatment in the market, we are increasing the Symbravo sales team by approximately 50 representatives. Our expanded Symbravo sales force of 150 representatives will support broader reach in the primary care market while deepening engagement with headache specialists and neurologists throughout the country. We are also pleased to announce a major commercial payer contract for Symbravo effective this month, securing coverage for approximately 17 million lives. The agreement reflects Symbravo’s compelling clinical profile and its potential to address the needs of patients with inadequate response to triptans. Overall payer coverage for Symbravo is approximately 57%, representing 56% in the commercial channel and 57% in government channels. We expect coverage for Symbravo to expand and evolve throughout 2026.

Finally, in Q1, approximately 54,000 Sunosi prescriptions were written, representing 16% year-over-year growth and a 3% decline sequentially. By comparison, the wake-promoting agent market grew 1% year-over-year and declined by 5% versus Q4 2025. Nearly 500 new clinicians prescribed Sunosi in the quarter, bringing the total cumulative prescriber base to more than 16,500 since launch. Payer coverage for Sunosi remains steady at approximately 83% of lives covered across channels. Overall, the first quarter of 2026 was marked by significant progress across Axsome’s commercial business, including strong demand for our products, key advancements in market access, launch preparations for Auvelity and Alzheimer’s disease agitation, and disciplined organizational growth designed to maximize the potential of our singular CNS portfolio. Looking ahead, Axsome is well positioned to deliver on our commercial objectives across our innovative portfolio through the balance of the year.

We look forward to sharing our continued progress with you over the coming months. I will now turn the call back to Herriot to discuss our singular CNS pipeline.

Andrew Stein, Analyst, Jefferies0: Thank you, Ari. I will now touch on recent developments and upcoming milestones for the rest of our pipeline. Starting with AXS-12, as I mentioned, we recently submitted our NDA for AXS-12 for the treatment of cataplexy in patients with narcolepsy. Narcolepsy is a rare and debilitating neurological condition that affects approximately 185,000 people in the U.S. We are excited by the potential of AXS-12 to provide a new and differentiated treatment option to patients living with narcolepsy. We look forward to announcing the FDA’s decision on the acceptance of the filing. Beyond AXS-12 in narcolepsy, we are also developing the full suite of clinical programs in our leading neuroscience pipeline. Starting with AXS-05, we are on track to initiate a pivotal phase II/III trial in smoking cessation this quarter. Moving on to solriamfetol. Our phase III programs for this molecule continue to progress.

These include ADHD, binge eating disorder, MDD with symptoms of excessive daytime sleepiness, and excessive sleepiness in shift work disorder. For ADHD, we are on track to initiate 2 pediatric phase III trials, one in children and one in adolescents this quarter. For MDD, we recently initiated the CLARITY study, a phase III double-blind, placebo-controlled, randomized withdrawal trial. In the trial, patients who achieve a sustained response during the open label period will be randomized to continue solriamfetol or switch to placebo. The primary endpoint of that trial is time to relapse of depressive symptoms. For binge eating disorder, our ENGAGE phase III double-blind, randomized controlled trial is progressing, and we anticipate top line results in the second half of this year. Finally, for shift work disorder, the phase III trial continues to enroll, with top line results anticipated in 2027.

Turning now to AXS-14, our novel, highly selective and potent norepinephrine reuptake inhibitor for fibromyalgia. Enrollment is ongoing in the FORWARD phase III trials. We look forward to sharing updates on this program as the study progresses. For AXS-17, our novel oral selective gabapentin for epilepsy tech transfer and phase II trial enabling activities are well underway. Lastly, we recently acquired AXS-20, or Balipodect, a potentially first in class oral potent selective PDE10A inhibitor. We plan to develop AXS-20 for the treatment of schizophrenia and for Tourette syndrome. We plan to initiate phase III trial enabling activities for AXS-20 in schizophrenia later this year. I will now turn the call back to Ashley for Q&A.

Ashley Dong, Senior Director of Investor Relations, Axsome Therapeutics: Thank you, Herriot. Operator, please open the line for Q&A.

Andrew Stein, Analyst, Jefferies7: Certainly. We’ll now be conducting a question and answer session. In the interest of time, we ask you please ask 1 question and 1 follow-up, then return to the queue. Our first question today is coming from Ashwani Verma from UBS. Your line is now live.

Ashwani Verma, Analyst, UBS: Hey, guys. Congratulations again on all the progress. Thanks for taking our question. I know it’s the second day of Q&A, but maybe just on ADA, are you thinking about the LTC market in the long run? I mean, clearly right now, 40% of these patients reside in LTC, but the current prescriber mix is heavily PCP. When you think about the long run, for this, for you to completely extract value out of this market, how much of a focus does LTC need to become in the long run? Thanks.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Hi, Ash. Thanks for the question. It’s Ari. Our sales team of approximately 630 representatives will call on both community and long-term care facilities. For us it’s important to be present and to educate prescribers and care partners within both facilities or both settings of care. Ultimately, it’s a concentrated market that allows for efficient promotional activities. We expect that it will grow over time as the brand ramps. We believe that community and long-term care are both very important for this market and look forward to sharing some updates as we get going with the launch.

Ashwani Verma, Analyst, UBS: Got it. Can I ask a quick follow-up?

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Sure.

Ashwani Verma, Analyst, UBS: Just on the ADA indication, I know you’re using this unique 30 mg dextromethorphan dose in the titration pack, which you haven’t used before for this launch. Is this supplied in the channels already or does this in any way become like a bottleneck for the full launch at this point? Thanks.

Andrew Stein, Analyst, Jefferies0: Hi, Ash. As a reminder, we’ll be launching next month. Ari touched on the items that are being finalized right now for launch. Do you wanna recap those again one more time, Ari?

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: I mean, we’re finalizing our sales and marketing resources and training our sales force on the new indication. The titration dose will be available at the time of commercial launch.

Ashwani Verma, Analyst, UBS: Thanks.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Marc Goodman from Leerink. Your line is now live.

Andrew Stein, Analyst, Jefferies3: Those are pretty big peak sales numbers. Can you help us just understand, like, why did you feel like you had to raise them today? Secondly, just talk about what went into the forecasting there and, $4 billion in each indication. Thank you.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Thanks, Mark. The FDA approval of Auvelity in Alzheimer’s disease agitation provides greater certainty regarding the long-term sales potential of the product. As you know, Alzheimer’s disease is a large and growing market. 7 million patients, of which 76% are impacted by agitation symptoms. Of course, there are only 2 approved agents on the market. When we review our proprietary market research on HCP perceptions, potential use of the product, taken together with the clarity around the final label, it really provides confidence that Auvelity will be used as a frontline treatment in Alzheimer’s agitation. We’ve seen growing use as frontline treatment in MDD.

The foundation market access that we built, along with growing adoption in primary care, which of course is a critical provider segment in the Alzheimer’s space, I think these things, taken together with our MDD penetration and growth trajectory and the increased sales force to support both indications, give us confidence in the potential to achieve our updated peak sales estimate for Auvelity.

Andrew Stein, Analyst, Jefferies0: Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Andrew Stein from Jefferies. Your line is now live.

Andrew Stein, Analyst, Jefferies: Hi, good morning. Thanks for taking our questions. I had a bigger picture question. You know, now with Auvelity approving Alzheimer’s disease agitation, how does that embolden you guys to pursue even more indications? I’d imagine you can directly go to phase III with Auvelity for other indications. This drug has a long tail, too. Maybe talk about when we might learn more about indication expansion of opportunities, or is that it with Auvelity? Thanks.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Hey, Andrew. Good morning. The we did touch on the next indication that we’ve been working on for some, that smoking cessation. Stay tuned for updates there. You know, the next step with that program is initiating the phase II/III pivotal trial. We’ll have updates there soon. You know, the product is very interesting given that it targets the NMDA and sigma-1 receptors. High potential applicability to other neuropsychiatric conditions, you know, that’s something that the team is obviously exploring. Right now, the next formal step is smoking cessation trial initiation.

Andrew Stein, Analyst, Jefferies: Great. As a follow-up, with your new PDE10 asset that’s starting phase III enabling studies this year, can you talk about the efficacy safety profile, why it did not necessarily hit stats sig in phase II, and why you think you can produce a different outcome in phase III? Correct me if I’m wrong, but I think schizophrenia studies could be relatively fast. Could it be possible we get data maybe 2028? Thanks.

Andrew Stein, Analyst, Jefferies0: Sure. Thanks, Andrew, for the question on Balipodect. With regards to the efficacy, there was a phase II trial, which you mentioned, which was done in schizophrenia. This was a randomized double-blind, controlled trial. When we looked at the data, there was clear separation. The magnitude of treatment effect for Balipodect was on the high end when you look at historical treatments for schizophrenia. Now, because of the size of the study, obviously it was not powered for statistical significance. Despite that, there was a very clear trend and there was statistical significance on various measures, including, for example, global measures. Clinicians were able to see the highly statistically significant improvements in schizophrenia. There were also other measures which were positive.

For example, the rates of discontinuations due to lack of efficacy, wide gap with half of the patients who were placebo discontinuance to lack of efficacy versus in the low double digits for Balipodect. Clearly, there was a very strong signal there. When you look at the safety profile, it is very distinct obviously from atypical antipsychotics. We’re very excited about this potentially first-in-class treatment. As it relates to timing of starting a phase III trial, this is a phase III-ready asset. What we need to do is to restart manufacturing of clinical supplies. The phase III-enabling activities are ongoing this year.

We would anticipate we are targeting potentially starting a phase III trial around the end of the year.

Andrew Stein, Analyst, Jefferies: Thank you again. Big congratulations.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Ami Pardiau from the Even Company.

Ami Pardiau, Analyst, The Even Company: Hi. Good morning. Thanks for taking my question. Firstly on Symbravo, can you give us some more details around where you’re seeing utilization and how you see the drug evolve, you know, with sort of this expanding payer coverage? How do you see the evolution of, you know, gross to net and also utilization as the year progresses? With regards to Auvelity, just to follow up to a previous comment, as you think about the IP runway you have, how are you thinking about sort of really expanding the number of indications where you explore this product, you know, ahead of the IP runway and the IRA? You know, could we expect to see you look at multiple other indications, or will it be sort of more sequential? Thank you.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Hey, Tommy. I’ll start with the Symbravo question. You know, we’ve been really pleased that Symbravo has found its way into the treatment paradigm for many headache specialists. What we’re seeing is, you know, approximately 60% of use is in the first and second line setting. The feedback that we get from HCPs is that Symbravo has been particularly effective for patients with inadequate or partial response to triptans, we expect those patients to be the primary focus moving forward. Obviously the market access win that we’re announcing today is an important step for long-term patient access. We think it will have a positive impact on GTN in the future.

The focus of the team is to continue to expand access for patients, which will help to drive reductions in GTN over time. For the short term, we expect GTN to continue to be elevated as we build our access.

Andrew Stein, Analyst, Jefferies0: Great. As it relates to sort of a question on new indications or additional indications for Auvelity given the IP runway, you are correct. We’re in a very favorable position given that there is a very long exclusivity runway for Auvelity and also the fact that the product is commercialized. We are not resource constrained as it relates to potentially developing it for other indications. The other interesting thing about the product which Warren touched upon is its unique pharmacology, which is applicable to a number of potential CNS indications. We have very clear ideas, as you can imagine, internally around what these additional indications are. We want to make sure that we move in a very measured way.

If there is something that is worth doing, you know, we think it’s worth doing quickly. Stay tuned as it relates to other potential indications which could further increase the value of the product long term. Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Jason Gerberry from Bank of America. Your line is now live.

Andrew Stein, Analyst, Jefferies1: Hey, guys. Thanks for taking my question. another follow-up question on the PDE10. My understanding was that I think Axsome in acquiring this asset planned to push dose relative to what was studied by Takeda to get better receptor occupancy. Wondering if you can speak to that dynamic, how high you’d be looking to push dose and confidence that the supportive data give you a safe dose strength to interrogate. As my follow-up, are there any signs or indications that, you know, antipsychotic use in nursing homes is coming down at all in the wake of the March OIG report that was dubbed, I think, Inappropriate Use of Antipsychotics in Nursing Homes?

Just kind of curious if you have any insights, as you gear up for your own, ADA launch. Thanks.

Andrew Stein, Analyst, Jefferies0: Yeah. Thanks for the question. With regards to the PDE10 inhibitor, we have not discussed dosing as it relates to the product. However, the dose that was studied was effective. You know, had the number of subjects per arm than what you would have what you would have seen in a normal phase III trial in schizophrenia. Clearly it would have reached the level of significance.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Yeah. Regarding your question on antipsychotic use, there hasn’t been an immediate drop in antipsychotics in an overall substantial way. I think the news is still relatively new. What I will say is that the awareness of that report and the sensitivity on using antipsychotics with this patient population is very high among providers and family members. We think that provides a good foundation for the Auvelity launch in the Alzheimer’s disease agitation space, and expect there to be, you know, continued focus on antipsychotic use moving forward.

Andrew Stein, Analyst, Jefferies1: Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question today is coming from Ram Selvaraju from H.C. Wainwright. Your line is now live.

Andrew Stein, Analyst, Jefferies8: Thanks so much for taking my questions. Firstly, on the commercial side, I was wondering if you could provide us with some additional details regarding the deployment of the field sales force, the degree to which sales reps currently promote more than one product, or are dedicated to promoting a single product within your commercial product range, and how you expect this to evolve going forward. In other words, to what extent do you expect to deploy sales representatives dedicated to a specific product and a specific indication, versus having them promote more than one product at a time? To what extent, you know, this strategy will be reflective going forward, in the deployment of the commercial sales force.

With respect to clinical development directions, I was wondering if you could comment generally perhaps on your interest in muscarinic receptor modulation, particularly as this pertains to both the neuropsychiatric and cognitive dysfunction dementia fields. You could also give us a sense with respect to Balipodect, you know, where you expect the specific safety advantages of this, of this product to lie within the neuropsychiatric indications that you expect to target. Thank you.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Yeah. I’ll start with the deployment of sales force question. Up to this point, we’ve largely had our sales teams focused on one specific brand. Part of that is related to the unique specialist audiences that are particularly important in the launch phase. For Auvelity, that’s psychiatry, for Symbravo, headache specialists and neurologists, and for Sunosi, sleep specialists. With the Alzheimer’s agitation launch, because of the high degree of overlap in call points for MDD and ADA, that team will be supporting and promoting both indications. But in terms of long-term potential or vision for the team, as you know, our portfolio and our pipeline is unique in that there are many shared call points for certain therapeutic areas.

That’s something we’ll continue to evaluate, and we’ll share as we make some progress moving forward.

Andrew Stein, Analyst, Jefferies8: Great.

Andrew Stein, Analyst, Jefferies0: As it relates to the pipeline questions, with regards to your question on muscarinic receptor modulation, that mechanism of action does not fall into our current pipeline, so we don’t have much to add there. As it relates to Balipodect and the potential safety advantages, just as a reminder, this is a PDE10A inhibitor. It works by regulating cyclic AMP and cyclic GMP levels downstream from D1 and D2 receptors. The potential safety advantage, and this has been shown in preclinical studies as well as in clinical studies, is one of the advantages is that what has not been seen or changes in glucose levels or prolactin levels.

As you know, with atypical antipsychotics, one of the major side effects has to do with metabolic side effects. We have seen pre-clinically as well as clinically that this could be a major benefit with Balipodect.

David Amsellem, Analyst, Piper Sandler: Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from David Amsellem from Piper Sandler. Your line is now live.

David Amsellem, Analyst, Piper Sandler: Thanks. Just two for me. With the significant expansion of the commercial infrastructure, what’s your appetite for the acquisition of a market ready or commercial stage asset? I know you focused on expanding the pipeline, but you have a lot of infrastructure now that you can leverage. Maybe talk to that. Secondly, a question on Reboxetine and how you’re thinking about the underlying commercial opportunity in a landscape where you’re going to have orexin 2 receptor agonist as options in this population. Thanks.

Andrew Stein, Analyst, Jefferies0: In terms of being able to acquire a marketed product, we have done that in the past, and we did that with Sunosi, which was our first acquisition. Having said that, we have such a rich portfolio of marketed assets, new indications and also a very late stage pipeline that we, you know, we have enough to focus on to drive long term and as well as near term value. Short term and near term value questions and, you know, long term sustainable value creation. With regards to the orexin 2 agonist. If you look at if you look at narcolepsy, this is an orphan indication, but a large orphan, 185,000 patients.

What we see is that there’s a lot of heterogeneity in this patient population. There’s a lot of polypharmacy. Not every drug works. Also there is a lot of side effect liability with the current treatments. You know, each treatment will have different side effect profiles. What we like about our product, about AXS-12, a couple of things. 1, it works very quickly. We have an onset of action which is at 1 week. Currently, all the other products on the market take a lot longer, about 1 month to work. Secondly, the efficacy that we’ve seen is durable. We have data out to 6 months.

And all of that efficacy comes with a very favorable side effect profile and a first-in-class mechanism of action for narcolepsy. Lastly, with regards to some of the other ancillary symptoms of narcolepsy, the data does show that AXS-12 has the potential to also beneficially affect EDS as well as cognition. We’re very excited by the potential to provide a new treatment option to patients.

David Amsellem, Analyst, Piper Sandler: Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question today is coming from Yatin Suneja from Guggenheim Partners. Your line is now live.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics1: Hey, guys. Thank you for taking my questions and congrats on all the success and progress. Just a question on ADA. Actually two questions. One is, you know, how should we think about sort of guidance? At what point do you think you might be able to establish guidance if that’s even possible? Two, you know, if we, you know, we are all trying to model the ADA ramp curve. Obviously when you launch Auvelity in MDD, I think the awareness was not there. How much more like how should we think about the early launch in MDD and how do we sort of model it for ADA? Any guidance there will be really helpful. Thank you.

Andrew Stein, Analyst, Jefferies0: Sure. Hey, Yatin, this is Nick. As it relates to guidance, first of all, we gave guidance, right? We have peak sales guidance out there of at least $8 billion for Auvelity, $300 million-$500 million for Sunosi, and $500 million-$1 billion for Symbravo. That’s our peak sales guidance. You know, obviously a lot of fluidity now with the expansion, with the approval, with market access continuing to grow and evolve. At this point, there’s many variables out there from a short-term perspective. We want to see how they

Andrew Stein, Analyst, Jefferies6: evolve and then we can take a look at potential guidance down the road.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Regarding the ADA ramp, obviously it’s very challenging to predict exactly how any new launch will ramp over time. As you mentioned, you know, the Auvelity MDD in one hand is an analog, even though different marketplace, same product and, you know, obviously we’re optimistic because there’s greater awareness, better market access, larger sales team. On the other hand, there’s a one analog in this market with Rexulti, and although the clinical profiles are very different, it does give some sense of uptake in the settings of care which we’ll be entering. I think we’ll learn more as we get into the launch, and we’ll be able to share those details of what we’re observing.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics0: Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Sean Laaman from Morgan Stanley. Your line is now live.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics0: Thank you. Good morning, everyone, and hope everyone’s well. Back on AXS-12, I’m just wondering what you sort of price and payer discussions, if any, have been like, and what’s the kind of investment you think you need to make to ensure that this drug has a success, you know, given there is, you know, such hot debate on the OX2R agonist and the large market potential there?

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Thanks, Sean, for the question. You know, obviously, we’ve been engaged with payers on early education around the clinical trial programs and the data. We have not specifically engaged in pricing discussions, so I’ll have to defer to a later time to share some of those details. There is genuine interest in new narcolepsy products for the reasons Ari stated earlier, which is that there’s significant inadequate response, treatment switching and polypharmacy. Payers are very mindful of ensuring that treatment options that are available have strong efficacy, safety, tolerability. In terms of the investment required, you know, we’ll have more to share as we get closer to a potential approval.

As we’ve mentioned previously, you know, we have established a sleep team for Sunosi that is in market today, and obviously there is near perfect overlap in terms of ACV targets for Sunosi and AXS-12, if approved.

Andrew Stein, Analyst, Jefferies6: Yeah, maybe just a little bit furthering on to Ari’s comments from a financial perspective. You would think of orphan drug pricing from a top line. As Ari shared, we already have the infrastructure set up with the sleep team and the marketing team from sleep. You know, what we would anticipate that a lot of synergies with AXS-12 into the current infrastructure and continued improved operating leverage within the P&L.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics0: Well, thank you. How excited are you about that product? It doesn’t seem to get a whole heap of airplay amongst investor discussions. How excited are you about it?

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Dario? Oh, I’m sorry. Go ahead. Very excited. We are very excited. The feedback we’re getting from KOLs and early market research is really strong. You know, because these patients are very difficult to treat and are frankly dissatisfied with existing treatment options, we believe there will be significant room for AXS-12 to make a significant impact in this marketplace.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics0: Wonderful. Thank you. That’s all I have.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question today is coming from David Hong from Deutsche Bank.

David Hong, Analyst, Deutsche Bank: Hi there. Thanks for taking my question, and congrats on all the recent progress. First I wanted to come back to the peak sales number that you put out there for Auvelity. If I, if I heard you correctly, I think you said 50/50 for the, you know, MDD versus ADA indications. The MDD number, you know, strikes me as a large one, and I’m just wondering if you look at other, kind of other antidepressants or comparable products in the market to help you get to that number. Maybe a follow-up there is, does that contemplate, you know, evolving competition in the field over the next few years, let’s say? For example, do you see psychedelic therapies as competitors to Auvelity? Thanks a lot.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Thanks, David. I think obviously we take a look at market analogs, but they don’t fully drive our decisions, which is largely based on our internal research and analysis, and, you know, what we’re seeing in terms of adoption rates, penetration, the improvements in our commercial infrastructure related to sales force and market access, and now the additional data in Alzheimer’s disease agitation. In some ways, Auvelity stands on its own in this marketplace because of its novelty in terms of mechanism of action as well as the clinical profile that it delivers when compared to other treatment options.

We’re confident in the potential that we shared earlier today, and, you know, look forward to sharing some additional updates as we grow the brand, particularly as we get into the Alzheimer’s disease agitation launch, which is a really important milestone for the brand.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Myles Minter from William Blair. Your line is now live.

Andrew Stein, Analyst, Jefferies5: Oh, hey. Thanks everyone. Congrats on the quarter. First one’s just on the ENGAGE study of solriamfetol in binge eating disorder. How are you thinking about what you’d like to see from an efficacy standpoint there? Should we be looking at the Vyvanse data set of about 1.5 day reduction in binge eating days over that week period, so that’d be about 18 to 20 days over your 12 weeks in ENGAGE? That’s the first one. On AXS-14, very curious as to the randomized withdrawal nature of the trial that you’re conducting in fibromyalgia. That seems great from a probability of success standpoint. Just reading some recent guidance from the FDA, I think that they make a statement that it’s not necessarily a robust comparative from the safety aspects of that drug.

Was there any sort of conversations that you’re already over the, you know, over the hurdle per se on the safety data requirements for AXS-14 with the previous data from Pfizer and that you don’t have to do any additional studies beyond this one? Thanks very much.

Andrew Stein, Analyst, Jefferies0: Thanks for the questions. As it relates to the binge eating disorder study, it’s hard to say what we’re looking for. Obviously, we powered the study to detect a treatment difference. One of the limitations of making predictions is that currently there’s only one product that’s approved, so not very many studies have been done in binge eating disorder. That’s exciting, and we look forward to the data readout to see what we see. Obviously what we’re looking for is a positive study. We’re looking for a statistically significant improvement with our drug versus placebo. As it relates to AXS-14, we are very excited about the clinical trial which we’ve launched.

With regards to the safety data, just as a reminder, two randomized double-blind placebo-controlled trials have been conducted and both of those were positive. These were very large studies. There were two long-term safety trials with hundreds of patients treated out to at least 1 year. Plenty of randomized as well as long-term safety data with AXS-14.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Matthew Hershenhorn from Oppenheimer. Your line is now live.

Andrew Stein, Analyst, Jefferies4: Hey, guys. Congrats again on the ADA approval, thanks for taking our question. We were wondering just about your overall BD strategy following the recent deals for AXS-17 and Balipodect, especially in terms of additional capacity in other areas you’d like to add to. If the recent policy and regulatory dynamics as well as some strategic interest for those inform your thinking there at all, I really appreciate it.

Andrew Stein, Analyst, Jefferies0: Thanks for the question. We don’t, as you know, comment specifically on business development, but what we can share is that we think very carefully and we’re very selective as to what we add. We don’t really need to add anything more. We have a pipeline right now which is very deep and very broad and late stage. You know, we did announce these 2 recent business development transactions which provide us 2 new NCEs with novel first-in-class mechanisms of action. That complements the rest of our pipeline. You know, we’ve demonstrated our ability to generate what we believe will be an inflection in the base business already.

Then also we are ensuring that that inflection will be sustained with the current pipeline that we have.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Benjamin Burnett from Wells Fargo. Your line is now live.

Benjamin Burnett, Analyst, Wells Fargo: Hey, thanks very much. I wanna ask just a question about the Clarity solriamfetol study. So it’s a randomized withdrawal study. Maybe give a little color as to why that design was chosen. I guess if it’s positive, would you expect to have to do a parallel study after that?

Andrew Stein, Analyst, Jefferies0: Thanks for the question. We do anticipate that we would need two positive trials. That’s the standard for any approval for any indication at the FDA. In terms of the reason for the randomized withdrawal design, one of the challenges with neuropsychiatric indications and depression in particular is the placebo response. How do you deal with that? In the prior studies, in the prior study which we conducted with solriamfetol in this indication, what we saw in the active arm was clearly a very pronounced antidepressant effect. What we wanted to make sure is that we’re able to tease out and really demonstrate that this is a drug effect, and while minimizing the impact of the placebo response.

That’s the rationale behind the selection of that study design.

Benjamin Burnett, Analyst, Wells Fargo: Okay. Thank you very much. Can I also ask, just like long term, how are you thinking about profitability? Does the increased conviction in Auvelity and what that could do from a sales perspective, I guess, does profitability start to become a goal for the company, or is the focus kind of more on sort of revenue growth?

Andrew Stein, Analyst, Jefferies6: Right now our focus continues to be on revenue growth. I think if you had to put things in priority order, revenue growth is number 1, then getting a cash flow positivity is 2, and then profitability shortly thereafter.

Benjamin Burnett, Analyst, Wells Fargo: Great. Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Graig Suvannavejh from Mizuho. Your line is now live.

Graig Suvannavejh, Analyst, Mizuho: Good morning, guys. Congrats on all of the progress and especially the AD agitation approval. Thanks for taking my questions. I’ve got questions on Auvelity, and I’m curious if you could provide some color around how we should think about this year’s quarterly sequential growth given seasonality dynamics, given that, you know, while Auvelity is still growing year-over-year in MDD, as you get to bigger numbers it starts slowing down, but then you’ve got the ADA launch. I guess, do you anticipate year-over-year growth in 2026 to be perhaps bigger than you saw in 2025?

just a follow-up on Auvelity, just given the Alzheimer’s disease agitation approval, can you tell us how you’re thinking about IRA implications and how we should think about as you add more Medicare patients, how we should think about including that in our models or not in terms of any impact there? Thanks.

Andrew Stein, Analyst, Jefferies6: Great. Yeah, I’ll start with the first question around quarterly sequencing. You know, we haven’t guided specifically on sales ramp over the course of the year, but, as you know, Q1 is a quarter in which market seasonality comes into effect, but we believe is transitory in nature, as evidenced by the early demand trends that we’re seeing in Q2.

Maybe just a little bit on the IRA, Greg. You know, at the earliest, IRA negotiations will not impact Auvelity until 2031. Obviously, assuming Auvelity meets the requirements for negotiation of being a top spend Part D product. It is important to note that the $8 billion that we shared today contemplates any type of IRA impact.

Graig Suvannavejh, Analyst, Mizuho: Okay. Thank you.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Brian Skorney from Baird. Your line is now live.

Charlie (on for Brian Skorney), Analyst, Baird: Hi. Thanks for taking our question. This is Charlie on for Brian. Just kind of following up on an earlier question, curious how you’re thinking about positioning Sunosi ahead of potential orexin agonist launch later this year, as well as with your expansion of the sales force there and wrapping up the expansion of the Auvelity sales force, how should we think about kind of the ramp of SG&A spend throughout 2026? Thank you.

Andrew Stein, Analyst, Jefferies6: Maybe I’ll take the SG&A question first. SG&A increased this quarter, primarily for four reasons. First off, we typically do see a bit of phasing of higher spend in SG&A in Q1 versus the rest of the year just on the underlying business. Secondly, we accelerated the marketing spend in preparation of approval of ADA to ensure the infrastructure was established and ready to launch in June. We’re moving along there very nicely. Thirdly, the field force expansion was actually faster than we anticipated. We’re pleased with where we are in preparation for a June launch. Fourth, we actually continue to have DTC spend for Auvelity in MDD.

As we think about the rest of the year, we would anticipate SG&A will likely increase in Q2, but at a slower rate than what we’ve seen from Q4 to Q1 and likely level out shortly thereafter. Importantly, we should note that we expect to see continued operating leverage in the P&L as top line revenue growth is anticipated to outpace the growth that we expect to see in operating expenses.

Andrew Stein, Analyst, Jefferies0: Regarding your question on AXS-12, obviously it’s a great time for treatment developments in the narcolepsy space. We’re very excited about the potential for AXS-12 to enter this marketplace. You know, without sharing specifics around the orexins, I would just say that we’re very pleased with the phase III clinical trial results. Herriot Tabuteau mentioned earlier, you know, significant reduction in weekly cataplexy attacks as early as week 1, very safe and tolerable, demonstrated benefits across a variety of secondary endpoints, including excessive daytime sleepiness and in cognition. We think there’s a real opportunity for AXS-12 to make a difference for patients. We’ll look forward to news regarding the submission.

Charlie (on for Brian Skorney), Analyst, Baird: Great. Thank you very much.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question today is coming from Madison El-Saadi from B. Riley Securities. Your line is now live.

Andrew Stein, Analyst, Jefferies2: Hey, congrats on the progress, and thanks for taking our question. A couple related to Auvelity. Our understanding is that long-term care formulary additions are gated by these quarterly reviews that facilities have. Just given everything we know in terms of payer coverage, sales force expansion, the general profile of the landscape. Curious if there could be a bolus of AD agitation patients. Just as a follow-up, I guess over the next, say, call it 12 months, how many prescribers do you expect may prescribe Auvelity for both depression and for AD agitation? Thanks.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Yeah, thanks for the question, Madison. Regarding LTC bolus, I think it’s difficult to predict exactly. But, you know, our team has been actively engaged with payers and LTC organizations to ensure patient access for Auvelity. Yeah, we’ll have more to share once we get into the commercial launch. In terms of MDD and ADA prescribing, I think it’s important to note, I think we shared this on our call last Friday, that we’ll be calling on roughly 68,000 HCPs with our extended sales team. Approximately half of those targets are considered high volume treaters of both Alzheimer’s disease agitation and major depressive disorder.

I think that gives you some sense of the potential for Auvelity being used across both indications, within a single prescriber or clinician’s practice.

Andrew Stein, Analyst, Jefferies2: Understood. rep again. I don’t think. Thanks.

Andrew Stein, Analyst, Jefferies7: Thank you. Next question is coming from Rudy Li from Wolfe Research. Your line is now live.

Andrew Stein, Analyst, Jefferies9: Thanks for taking my question. Just a quick follow-up to your long-term guidance of Auvelity and Auvelity sales. How should we think about the uptake maybe for the relatively near term, maybe in the next 2, 3 years? Just additional color, like, on your key assumptions and what kind of give you confidence with the trajectory to Auvelity and peak sales. Secondly, just can you talk about your OUS development plan for Auvelity since now we already secured 2 indications in the U.S.? Thanks.

Ari Maizel, Chief Commercial Officer, Axsome Therapeutics: Yeah, thanks for the question. You know, when you think about uptake in the next 2 to 3 years, obviously, there will be a lot to learn over the next several months as we see our expanded sales force in the market for both indications. Obviously the Alzheimer’s agitation indication will be new since it’s a new launch. It’s hard to share specifics on what we expect the uptake to be, but we have seen strong growth in new patient starts and new writer activation within MDD, which we expect to continue.

There will be another increase relative to the Alzheimer’s agitation market, which shares some common targets with MDD, but there are some distinct targets that we’re adding to the call plan for this year. I think we’ll have more to share as we get into the Alzheimer’s agitation launch. You know, the update to the peak sales estimate was guided by our internal analysis and ultimately the final label for agitation, which gives us confidence that in both indications there will be increasing frontline use of the product.

Andrew Stein, Analyst, Jefferies0: Yeah. Rudy, as it relates to OUS, our primary focus is on executing, you know, a launch in ADA and successful commercialization in the U.S. while identifying the ideal partner ex U.S. As we said in the past, our plans are to partner ex U.S. and our primary focus is to ensure that we find a partner that shares our vision for the drug in this region.

Andrew Stein, Analyst, Jefferies9: Got it. Congrats on the progress.

Andrew Stein, Analyst, Jefferies7: Thank you. We’ve reached the end of our question and answer session. I’d like to turn the floor back over for any further closing comments.

Andrew Stein, Analyst, Jefferies0: Thank you, operator. Axsome today represents a singular CNS platform with our differentiated marketed products and a broad pipeline of potentially first in class and best in class treatments targeting unmet medical needs in psychiatry and neurology. We are well-positioned to deliver substantial long-term value for patients and shareholders. We look forward to providing updates on our progress throughout the balance of the year. Thank you everyone for joining us this morning. Have a great day.

Andrew Stein, Analyst, Jefferies7: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation today.