Axsome Therapeutics (AXSM) is seeing continued momentum for its antidepressant Auvelity in major depressive disorder, alongside increasing attention following its FDA approval in Alzheimer's disease agitation, Oppenheimer said in a Wednesday note.

The analysts pointed to strong performance in Auvelity's MDD launch and growing investor focus on the Alzheimer's disease agitation indication and its expected uptake trajectory.

Oppenheimer also raised peak sales expectations for Auvelity to about $8 billion, driven by broader label expansion, expanded salesforce reach, and growing overlap between MDD and ADA prescribing populations, according to the report.

The upcoming catalysts, including the Phase 3 Sunosi readout in binge eating disorder expected in the second half of the year, along with additional pipeline assets and business development opportunities, could further support upside potential for the stock, the report added.

Oppenheimer has an outperform rating on the stock with a $280 price target.

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