We recently published an article titled Why These 15 Biotech Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Axsome Therapeutics, Inc. (NASDAQ:AXSM) stands against the other biotech stocks.

No matter the market environment, you’ll always find entertainment in the biotech space. There will always be biotech stocks making huge swings in both directions and these stocks can make or break your portfolio in a very small amount of time due to the nature of how important clinical trial results are for these companies.

The United Nations forecasts that the over-65 age group will grow by 150% from 800 million in 2024 to 2 billion by 2067. This "older, richer & sicker" population is expected to push global healthcare spending on medicines up 12% to $2.3 trillion by 2028. If you combine that with AI making breakthroughs in healthcare more frequent, you’ll see many more biotech stocks starting to pop to the upside over the coming years.

Methodology

For this article, I screened the top-performing biotech stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A pharmacist preparing a prescription for a rapidly absorbed multi-mechanistic medicine.

Axsome Therapeutics, Inc. (NASDAQ:AXSM)

Number of Hedge Fund Holders In Q4 2024: 44

Axsome Therapeutics, Inc. (NASDAQ:AXSM) is a biopharmaceutical company that makes treatments for CNS disorders that don't have reliable alternative treatments.

The stock is up significantly so far in 2025 due to the settlement of patent litigation with Teva Pharmaceuticals regarding AUVELITY, their treatment for major depressive disorder. This agreement prevents Teva from launching a generic version until at least September 2038 (or March 2039 if pediatric exclusivity is granted).

Another major catalyst was the FDA approval of SYMBRAVO for the acute treatment of migraine with or without aura in adults. This was announced in early 2025.

The company also has positive Phase 3 clinical trials for two key pipeline candidates for Alzheimer’s and narcolepsy.

The consensus price target of $165.36 implies 30.81% upside.

Axsome Therapeutics, Inc. (NASDAQ:AXSM) is up 49.39% year-to-date.

Overall AXSM ranks 13th on our list of the biotech stocks that are skyrocketing so far in 2025. While we acknowledge the potential of AXSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.