Market Overview

Acadia's FDA Breakthrough Designation For Pimavanserin Draws Mixed Response

Acadia's FDA Breakthrough Designation For Pimavanserin Draws Mixed Response

ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD) stock initially jumped above $41 per share on Thursday after the FDA granted Breakthrough Designation to the company’s dementia-related psychosis drug candidate Pimavanserin. However, the stock quickly reversed direction as the market digested the news and was trading at under $39 in the early afternoon session as the market digests the news.

In addition to the FDA ruling, Acadia announced it's initiating its Phase II trial of Pimavanserin for treatment of DRP. Piper Jaffray analyst Charles Duncan said that the market’s initial bullish reaction was the correct one.

“Yesterday’s reveal of a novel clin/reg strategy in a broad set of dementia-related psychoses, which we see as risk-reduced by previous data and trial design, enhances our conviction in ACADIA driving upside to its base case in PDP,” Duncan wrote in a Thursday note.

Acadia is also terminating its Phase II SERENE study related to Alzheimer’s agitation/aggression to focus on collecting patients for the new Phase III HARMONY study. Duncan said focusing on the HARMONY trial is the right move for the company, as positive results could result in a much larger indication than just Alzheimer's patients.

However, Stat News biotech reporter Adam Feuerstein wasn’t thrilled with the decision to discontinue the Alzheimer's study. He blasted both Acadia and the FDA ruling in a series of tweets on Wednesday:

PiperJaffray expects the new Phase III program will take roughly two years to complete.

In light of the news, Piper Jaffray raised its price target for Overweight-rated Acadia stock from $54 to $61.

Related Link: Collegium Rallies On 'Value-Based Contract' With Cigna; Here's What It Means

Latest Ratings for ACAD

Mar 2020Goldman SachsUpgradesNeutralBuy
Mar 2020CitigroupInitiates Coverage OnBuy
Mar 2020JP MorganMaintainsNeutral

View More Analyst Ratings for ACAD
View the Latest Analyst Ratings


Related Articles (ACAD)

View Comments and Join the Discussion!

Posted-In: Analyst Color Biotech News Price Target FDA Top Stories Analyst Ratings General Best of Benzinga

Latest Ratings

VOYAPiper SandlerMaintains58.0
PRUPiper SandlerMaintains64.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at