Is Axsome Therapeutics Stock a Millionaire Maker? Here's What the Numbers Say.

Axsome Therapeutics (NASDAQ: AXSM) has been going through a particularly significant growth phase in recent years, launching drugs for central nervous system (CNS) conditions and pushing several candidates through late-stage clinical trials. Investors have recognized the company's potential and piled into the stock -- it's climbed more than 220% over the past three years.

And considering these product launches are pretty recent, and any pipeline success could produce new revenue drivers, it's fair to say this biopharma company is in the early days of its growth story. Considering this, is Axsome stock a millionaire maker? Let's take a look at what the numbers say.

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Three approved drugs

First, though, let's take a close look at Axsome's story as a commercial-stage company. Axsome specializes in the treatment of CNS disorders, a market that spans Alzheimer's disease, major depressive disorder, narcolepsy, fibromyalgia, and other conditions. So Axsome's capabilities open the door to many markets that could support growth over time. The company sells Auvelity for agitation linked to Alzheimer's disease, and the drug is also approved for depression. Axsome's other products are Sunosi for daytime sleepiness associated with sleep apnea or narcolepsy, and Symbravo for migraine relief.

The two most recent approvals include the Alzheimer's indication for Auvelity in April of this year and the approval of Symbravo in January of last year. So the company is in the early stages of growth in those areas -- and the potential of Axsome's drugs was evident in the latest earnings report.

Double-digit product revenue growth

Auvelity product revenue soared 59% in the quarter to $153 million, and Sunosi revenue climbed 34% to $33 million. Symbravo only launched early last year, so it doesn't have a year-over-year comparison figure -- but the company offered clues that give investors reason to be optimistic about the drug's potential. Doctors wrote about 17,000 prescriptions for the migraine drug in the first quarter, and based on the drug's growth, Axsome is increasing its Symbravo sales force.

It's also important to note that the company may still progress on payer coverage for Symbravo, which should trigger additional growth. Right now, coverage is at 57% compared to more than 80% for the company's other drugs.

Another potentially big growth driver for Axsome is the Alzheimer's indication. Auvelity was just made available to these patients in June, with a sales force of more than 600 to bring the treatment to the attention of doctors, from primary care physicians to neurologists and geriatric specialists.

Another potential launch on the horizon

Meanwhile, Axsome has submitted AXS-12 for narcolepsy to regulators for review, so another product launch may be on the horizon. And the company has solriamfetol in phase three trials for four indications: attention deficit hyperactivity disorder, major depressive disorder, binge eating disorder, and shift work disorder. Finally, AXS-14 for fibromyalgia is also in a phase 3 trial. So the company's late-stage pipeline is almost bursting at the seams, which could lead to explosive growth in the coming years if all goes smoothly.

It's clear that Axsome is a young biopharmaceutical company that's on the rise, due to recently launched drugs and candidates that are nearing the finish line. Now let's get back to our question: Could this stock make you a millionaire?

Axsome stock has climbed quite a bit in recent times, but it still could have plenty of room to run as the era of revenue growth unfolds. The company has $305 million in cash and says this position will help it fund operations "into cash flow positivity." So we really are at the start of the Axsome story.

Still, a look at the numbers shows us just how difficult it is to reach $1 million by investing in one stock. For example, if you invested $1,000 in Axsome stock and it climbed 500%, you would have $6,000. That would leave Axsome stock trading at more than $1,400 -- and at a trillion-dollar market value. That's very unlikely.

But this doesn't mean you should avoid Axsome stock. The best way to reach $1 million through investing is to buy shares of many quality companies -- and Axsome would make an excellent part of the group -- and hold on for the long term.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axsome Therapeutics. The Motley Fool has a disclosure policy.