Is This Healthcare Stock a Millionaire Maker?
Axsome Therapeutics (NASDAQ: AXSM), a midcap biotech, went public in 2015. Since then, the stock has delivered market-beating returns thanks to significant clinical and regulatory progress, as well as a portfolio of now-approved drugs that generate solid sales. Axsome Therapeutics might only be getting started. The company still has a deep pipeline and plenty of catalysts ahead. But does it have what it takes to turn average investors into millionaires?
If you had invested $50,000 into Axsome Therapeutics following its IPO, you would be sitting on close to $1 million today, given its compound annual growth rate of 33.32% over this period. Can the biotech pull off a similar performance through the next decade? That's unlikely, as it would give the company a market cap of about $157 billion, making it one of the largest drugmakers in the world. It's not impossible, to be clear, but it's an incredibly high bar to expect Axsome Therapeutics to match the performance it has had since 2015, when it started as a significantly smaller biotech stock.
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Source Fool.com
