Even in a struggling stock market, it is possible to find stocks that perform exceptionally well. That's been the case for biotech company Axsome Therapeutics (NASDAQ: AXSM) over the past year, with the company's shares more than doubling in this period. There were positive developments that helped lift Axsome Therapeutics in 2022; there will be more this year.

But do they justify a market cap of $2.9 billion for a company with just two products on the market that generate little revenue (just about $50 million last year)? Let's consider whether Axsome Therapeutics is worth investing in at current levels, or whether investors should wait for a better entry point.

While Axsome Therapeutics' revenue wasn't impressive last year, that's not too surprising. It became a commercial-stage biotech in 2022 thanks to the August approval of Auvelity, a fast-acting medicine for depression, and a therapy for narcolepsy called Sunosi it acquired in May 2022. Both of these products have a chance to earn new label expansions down the line.

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Source Fool.com