Health and Healthcare
Why Merrill Lynch Sees Acadia Rising Another 60%
Published:
Last Updated:
Shares of Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) surged early on Monday morning. This company is under the spotlight by the U.S. Food and Drug Administration’s Psychopharmacologic Drugs Advisory Committee, which is set to review data included in Acadia’s New Drug Application (NDA) for Nuplazid (pimavanserin) for the treatment of with Parkinson’s disease psychosis (PDP). Merrill Lynch gave its opinion as well and why this company could rise another 60%.
Although the Advisory Committee Meeting is scheduled for March 29, shares rose ahead of the meeting. Ultimately this committee will decide whether Nuplazid would be approved to treat psychosis in Parkinson’s patients.
Should Nuplazid gain the committee’s approval, its sales could exceed $1 billion, according to some analysts.
Looking even further ahead, the Prescription Drug User Fee Act (PDUFA) action date for completion of the FDA review of the Nuplazid NDA is May 1. The FDA has granted the Nuplazid NDA Priority Review status and designated it for the treatment of psychosis associated with Parkinson’s disease as a Breakthrough Therapy.
Merrill Lynch speculated on the committee’s vote as well:
We expect a positive vote given 1) Nuplazid does not interfere with underlying PD meds and 2) No approved therapies in PDP. We expect clinical meaningfulness of data will be a key topic of discussion for panel.
While the FDA’s tone was not one of unequivocal support, Merrill Lynch believes awareness of undermet need will drive support. The firm views Nuplazid’s lack of interaction with drugs used to treat motor symptoms of PD as its key advantage versus off label use of antipsychotics to treat psychotic symptoms. Merrill Lynch believes Nuplazid’s safety profile will be discussed in detail and could result in a black-box warning. The brokerage firm’s physician discussions indicate this would not deter use, given that antipsychotics also carry black-box warnings. As a result Merrill Lynch reiterated a Buy rating with a $40 price objective for Acadia.
Shares of Acadia were last seen up over 20% at $24.51, with a consensus analyst price target of $44.80 and a 52-week trading range of $16.64 to $51.99.
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.