Acadia Pharmaceuticals: I Remain Cautiously Bullish After Q3 Updates


  • Acadia released its Q322 earnings this week. Revenues of $131m and a net loss of $27.2m are about par for the course.
  • Acadia’s only approved drug Nuplazid is approved to treat Parkinson’s Disease Psychosis. Several attempts to expand the label have not succeeded.
  • A second drug Trofinetide could win approval in Rett Syndrome next March however – the revenue opportunity could be >$500m in time.
  • It’s possible Nuplazid could win approval to treat Negative Symptoms of Schizophrenia also, another ~$500m revenue opportunity.
  • If either of these approval shots succeed I would expect to see Acadia stock trade >$20 once again. I remain cautiously bullish.
Mental health problems


Investment Overview

In my last note on Acadia Pharmaceuticals (NASDAQ:ACAD) published at the end of June I gave the company a bullish rating. This was based on a few factors.

Acadia’s share price had recently dropped from >$25, to $13, after an FDA Advisory

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ACAD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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