Axsome Therapeutics (NASDAQ: AXSM) stock plummeted 5.41% on Tuesday, February 18, 2025, after the biopharmaceutical company reported a wider-than-expected loss for the fourth quarter of 2024, despite beating revenue estimates. The company posted a net loss of $74.9 million, or $1.54 per share, missing analysts' consensus estimate of $1.03 per share. However, revenue rose 66% year-over-year to $118.77 million, surpassing expectations of $117.64 million.

The larger-than-anticipated loss was primarily driven by higher operating expenses, which surged 72% year-over-year to $191.4 million. Research and development costs soared 79% to $55 million, while selling, general, and administrative expenses jumped 30% to $113.3 million. These increases were attributed to the advancement of multiple late-stage clinical trials, manufacturing costs for new product candidates, and higher personnel costs associated with organizational growth.

Despite the earnings miss, Axsome provided promising updates on its pipeline, including the successful completion of the Phase 3 clinical program for AXS-05 in Alzheimer's disease agitation, with plans to submit a New Drug Application to the FDA in the second half of 2025. Additionally, the company reported positive topline results from the ENCORE Phase 3 trial of AXS-12 in narcolepsy and expects to file an NDA for the treatment in the latter part of 2025. Axsome also received FDA approval for its migraine treatment Symbravo in January 2025, with plans to launch the product in the coming months.