Axsome's Trade Receivables Hit $371.3 Million, Up From $246.7 Million At Year-End, While The Company Still Loses Money
Customers owe Axsome far more than in December, and a few wholesalers account for most of its sales, the 10-Q shows.
Axsome Therapeutics, which develops and sells medicines for central nervous system conditions, carried $371.3 million in trade receivables at September 30, up from $246.7 million at year-end, according to its 10-Q filed Monday. The company still posted a nine-month net loss, and its receivables sit with a handful of wholesale distributors.
Receivables outrun sales
Net of reserves, accounts receivable rose to $343.1 million from $224.5 million at December 31. The cash-flow statement shows receivables absorbed $118.7 million of cash over the nine months. The prior quarter's 10-Q showed net receivables of $277.5 million.
Nine-month revenue rose to $669.3 million from $442.5 million, and third-quarter revenue was $259.7 million against $171.0 million a year earlier. Cash used in operations over nine months was $63.1 million, compared with $74.8 million a year earlier.
Axsome says it sells mainly to wholesale distributors, which resell to pharmacies, and that receivables typically carry payment terms of 60 days or less. It reports no allowance for doubtful accounts and no significant credit losses.
Three customers, 90% of sales
Axsome's three largest customers made up about 39%, 27% and 24% of gross product sales over the nine months. The company says its receivables are concentrated among a limited number of US wholesale distributors, and that it generally requires no collateral.
The business behind the numbers: Axsome sells Auvelity for major depressive disorder, Sunosi for excessive daytime sleepiness and Symbravo for migraine. Auvelity net sales were $540.6 million for nine months, against $352.0 million a year earlier. Net loss for the nine months was $128.7 million, versus $154.6 million, and $12.9 million for the third quarter. Advertising costs were $170.1 million over nine months.
A higher discount rate and a CEO royalty
The discount rate used to value the contingent payments owed to Jazz Pharmaceuticals on Sunosi sales was 20.2% at September 30, versus 14.9% at year-end. The company booked a $3.3 million fair-value gain over nine months, and $74.8 million of that liability remains.
Axsome also pays royalties on Auvelity sales to Antecip, an entity owned by CEO Herriot Tabuteau. Accrued royalties due to Antecip were $11.5 million at September 30, up from $4.7 million at year-end. Royalty expense was $16.1 million for nine months, equal to 3.0% of Auvelity net sales.
Dates ahead
Apotex must answer or move in Axsome's second patent suit over Symbravo by November 9, 2026. The FDA's target action date for AXS-12, Axsome's narcolepsy candidate, is May 1, 2027.
Axsome's market value was $7.6 billion as of Monday's report, with the Apotex filing deadline the next date the 10-Q names.
Sources
- 10-Q Filing — Axsome Therapeutics (AXSM) — SEC EDGAR
- 10-Q Filing — Axsome Therapeutics (AXSM), Q2 FY2026 filed 2026-08-10 (comparison basis) — SEC EDGAR
- 8-K Filing — Axsome Therapeutics, filed 2026-11-02 (Items 2.02, 8.01, 9.01) — SEC EDGAR
- Earnings release (8-K Item 2.02, axsm-ex99_1.htm) — Axsome Therapeutics, filed 2026-11-02 — SEC EDGAR
- Axsome Therapeutics GAAP EPS of -$0.25 beats by $0.38, revenue of $259.7M beats by $10.51M (AXSM:NASDAQ) | Seeking Alpha — seekingalpha.com
- Axsome (AXSM) Reports Q3 Earnings: What Key Metrics Have to Say — Yahoo Finance
- Axsome Therapeutics (AXSM) Reports Q3 Loss, Tops Revenue Estimates — Yahoo Finance
- Axsome Therapeutics Shares Rise 2.13% as Q3 Revenue Jumps 52% and Loss Narrows — Yahoo Finance
- Axsome projects AUVELITY peak revenue of at least $8B as AXS-12 nears May 1, 2027 PDUFA (NASDAQ:AXSM) | Seeking Alpha — seekingalpha.com
