Why Axsome Therapeutics Stock Is Sinking Today
Shares of Axsome Therapeutics (NASDAQ: AXSM) were sinking 6.8% lower as of 11:19 a.m. ET on Tuesday. The decline came after Culper Research announced a short position in the biotech stock before the market open.
Culper alleged that Axsome's commercialization of depression drug Auvelity "has been aided by undisclosed consignment deals with dodgy mail-order pharmacies that subvert prior authorizations." It also claimed that these deals are "inflating script counts and reported revenues."
Culper Research said that its report and corresponding short position in Axsome was based on interviews with former company sales representatives, pharmacies, prescribing physicians, and patients. The short-seller also stated that it obtained a prescription for Auvelity through Axsome's telehealth partner without providing any documentation of failure with other depression drugs -- an important requirement for the insurer it used.
Source Fool.com
