Why Axsome Therapeutics Stock Is Jumping Today

Shares of Axsome Therapeutics (NASDAQ: AXSM) were jumping 13.8% as of 11:15 a.m. EDT on Friday. The big gain came after the drugmaker announced that the Food and Drug Administration granted a Breakthrough Therapy designation for its AXS-05 in treating Alzheimer's disease agitation.

The FDA only gives Breakthrough Therapy designation when an experimental drug shows promise for significant improvement over already-approved therapies for a serious or life-threatening condition. Since there are no FDA-approved treatments for Alzheimer's disease agitation, this threshold was relatively easy for AXS-05 to meet after Axsome reported positive results from its phase 2/3 Advance-1 study.

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Source Fool.com