Why Shares of Axsome Therapeutics Are Falling Today
Shares of Axsome Therapeutics (NASDAQ: AXSM) are down more than 10% in late-afternoon trading after the Food and Drug Administration (FDA) pulled the breakthrough therapy designation of its AXS-12 drug.
The drug -- designed to treat cataplexy, the sudden loss of muscle control in narcolepsy patients -- was originally granted the designation in August of last year. The label allows for the expedited review of a promising new medicine. The decision to rescind it was due to the approval of another drug from Harmony Biosciences (NASDAQ: HRMY) for the same condition.
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Source Fool.com
