Billionaire Steve Cohen’s Top 5 Small-Cap Stock Picks

1. Axsome Therapeutics, Inc. (NASDAQ: AXSM)

Number of Hedge Fund Holders: 22

This biopharmaceutical company makes novel therapies for treating and managing central nervous system (CNS) disorders, especially those with limited treatment options. Its current treatment pipeline earns it a spot in Point72 Asset Management’s top 10 small-cap stock picks. For the last quarter the company reported:

• R&D expenses reduced to $17.4 million courtesy of completing AXS-07 and AXS-05’s phase 3 safety and efficacy trials.
• Cash and cash equivalents in Q4 2020 dropped to $183.88 million from $220 million
• General and administrative expenses grew to $10.4 million courtesy of the expanded commercial operations and higher personnel costs linked to stock compensation.
• Axsome filed an NDA with the FDA for the use of AXS-05 as a treatment for major depressive disorder. It also plans to submit an NDA for AXS-07 as a potential treatment for acute migraines as soon as Q2.
• AXS-12 earned Orphan Drug Designation from the FDA for treating narcolepsy patients. The same pipeline drug also received Breakthrough Therapy Destination for treating cataplexy in patients that suffer from narcolepsy.
• Axsome expects a YoY increase in operating expenses in 2021 as it continues to build out its commercial function and expand its pipeline. The $225 million term loan that the company secured is enough to fund its planned operations well into 2024.

Iridian Asset Management is one of the 22 hedge funds tracked by Insider Monkey having stakes in AXSM at the end of the fourth quarter. The fund owns over 2.06 million shares of the company.

You can also take a peek at 10 Best New Stocks to Buy in 2021 According to Billionaire Paul Singer and 10 Best Stocks to Buy According to Billionaire Mason Hawkins.

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