Axsome Therapeutics Inc. (NASDAQ:AXSM) shares fell in early trading Monday after the company reported a wider first-quarter loss that missed Wall Street estimates, overshadowing stronger-than-expected revenue.

The New York-based biopharmaceutical company posted a net loss of $64.5 million, or $1.26 per share, for the quarter ended March 31, compared with a loss of $59.4 million, or $1.22 per share, a year earlier. Analysts had expected a loss of 90 cents per share.

Total net product revenue rose 57% year over year to $191.2 million, beating consensus estimates of $189.2 million.

Growth was driven by Auvelity, which generated $153.2 million in sales, up 59% from the prior year. The drug, approved for major depressive disorder, recently secured U.S. Food and Drug Administration approval for agitation associated with Alzheimer's disease, with a commercial launch expected in June.

Sunosi, used to treat excessive daytime sleepiness, posted revenue of $33.9 million, up 34%, while migraine treatment Symbravo contributed $4.1 million in its early launch phase.

Expenses rose sharply during the quarter. Selling, general and administrative costs increased to $185 million from $120.8 million a year earlier, reflecting commercialization efforts and pre-launch activities tied to Auvelity's new indication. Research and development expenses climbed to $52.7 million.

Auvelity prescriptions totaled about 223,000 in the quarter, up 35% year over year, underscoring continued demand.

Axsome ended the quarter with $305.1 million in cash and said its current resources are sufficient to fund operations into cash-flow positivity.

The company is also advancing its pipeline, including a new drug application submission for AXS-12 in narcolepsy and the addition of a potential first-in-class treatment candidate for schizophrenia and Tourette syndrome.

Axsome Therapeutics Technical Analysis

Axsome is still holding a strong uptrend near the upper end of its 52-week range, which keeps the bigger-picture bias pointed higher even as the stock cools off. It's trading 9.3% above its 20-day simple moving average (SMA) and 17.5% above its 100-day SMA, which indicates buyers have controlled both the short- and intermediate-term trend.

The relative strength index (RSI), a momentum gauge, is 72.32, which is in overbought territory and often lines up with choppier pullbacks. RSI at 72.32 shows upside momentum has been strong enough that traders may look for a reset before the next push.

Over the past 12 months, the stock is up 77.29%, which is consistent with a sustained leadership trend rather than a short-lived bounce. With the 52-week high set in April at $217.00 and the stock still below that mark, traders are watching whether the next attempt can reclaim that prior peak after this pullback.

• Key Resistance: $217.00 — the prior peak where rallies stalled in April.
• Key Support: $178.00 — an area where buyers have previously shown up to defend the trend.

Axsome Therapeutics Price Action

AXSM Stock Price Activity: Axsome Therapeutics shares were down 2.67% at $201.01 during premarket trading on Monday, according to Benzinga Pro data.

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