Why Axsome Therapeutics Stock Climbed 11.1% on Monday

Shares of Axsome Therapeutics (NASDAQ: AXSM), a biopharmaceutical company that specializes in central nervous system disorders, rose 11.1% on Monday. The stock, after closing at $35.36 on Friday, opened at $36.47 on Monday and shot all the way up to $39.29 in the first hour of trading. The gains were short-lived as the stock dropped and by the late afternoon was trading as low as $34.51 before closing at $35.11. The stock's 52-week low is $19.38 with a 52-week high of $74.10.

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The big news for Axsome was its announcement Monday that it was acquiring the drug Sunosi from Jazz Pharmaceuticals for $59 million, plus royalties on Axsome's U.S. net sales of Sunosi. Sunosi is approved by the Food and Drug Administration (FDA) to improve wakefulness in adults with excessive daytime sleepiness due to narcolepsy or obstructive sleep apnea.

Source Fool.com