2024-03-12 15:00:09 ET
Summary
- Acadia Pharmaceuticals stock price dropped over 15% after its drug candidate, pimavanserin, failed to meet the primary endpoint in a Phase 3 study in negative symptoms of schizophrenia.
- The setback adds to previous rejections of pimavanserin for other indications, raising concerns about Acadia's key asset, which loses patent protection in 2030.
- The failure of pimavanserin may impact Acadia's revenue growth and future profitability, leading to potential downward corrections in the stock price.
- Daybue, approved to treat Rett Syndrome, has been forecast to earn $370 - $420m in 2024 by management. That may be over-optimistic.
- With a "blockbuster" revenue opportunity in schizophrenia now off the table, my suspicion is the current selloff in ACAD stock will continue in the absence of upcoming data catalysts.
Pimavanserin Study Setback Drops Acadia Pharmaceuticals' Share Price To ~$20
Acadia Pharmaceuticals Inc. ( ACAD ) stock has been tumbling today - down >15% at the time of writing, after the company reported that its drug candidate, pimavanserin - already approved to treat Parkinson's Disease Psychosis, under the brand name Nuplazid, and earning revenues of $549m in 2023 - failed to meet the primary endpoint in a Phase 3 study in patients with negative symptoms of schizophrenia.
Nuplazid has been approved since 2016, and has been steadily growing revenues, earning $481m in 2021, $517m in 2022, and $549m in 2023. In March last year, Acadia secured commercial approval for a second drug candidate, trofinetide, in the indication of Rett Syndrome - a rare genetic disease that results in progressive loss of motor skills and language....
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Acadia Pharmaceuticals: Post Pimavanserin Study Setback Selloff May Continue