Axsome Therapeutics (NASDAQ: AXSM) wowed investors late last year with strong data from a phase 3 study of AXS-05, its candidate treatment for Alzheimer's disease agitation. AXS-05 met its primary and secondary goals in the study, and importantly, looked to be on track to enter the market with zero competition.

That last part is not going to happen.

The Food and Drug Administration (FDA) recently gave a different drug the nod as the first approved treatment for agitation linked to Alzheimer's disease: Otsuka Pharmaceutical and Lundbeck's Rexulti, a drug already being marketed for major depressive disorder. So if AXS-05 is approved, it won't have the Alzheimer's agitation market all to itself. This sounds like bad news for Axsome. But is it really?

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Source Fool.com