Axsome Therapeutics shares have traded down 42% from 52-week highs and roughly 30% since competitor's Avanir/Otsuka's Phase III placebo-controlled failure of AVP-786 in Alzheimer's disease agitation, William Blair analyst Myles Minter tells investors in a research note. Although the analyst expected weakness given "limited read-through" to Axsome's Phase II/III Advance trial of AXS-05 in the same indication expected to readout in the first half of 2020, he considers the ongoing negative reaction as largely sentiment driven and overblown. The company's fundamentals remain intact, says Minter, who recommends adding on weakness "going into a catalyst rich year-end."