Cowen analyst Ritu Baral is out with a positive research note on shares of ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) after hosting a group meeting last week with the biotech firm to discuss the launch status of its pipeline drug Nuplazid, designed to treat hallucinations and delusions associated with Parkinson’s disease psychosis. Additionally, Baral spoke with ACAD to discuss upcoming Phase 2 trial data of pimavanserin in Alzheimer’s psychosis, with topline data anticipated by December 2016.

Following these discussions, Baral reiterates an Outperform rating on ACAD with a $42 price target, which represents a 29% increase from where the stock is currently trading.

“We continue to believe that while the early Nuplazid launch is going well, the ADP trial has a low probability of hitting significance,” she asserts.

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In speaking with Baral, ACAD commented on plans to continue its early launch strategy for Nuplazid by heavily sampling the drug, distributing it in supply packages with physicians. Also weighing in Nuplazid’s favor are far better-than-anticipated payors, thanks to a 75% majority of patients coming from public health insurance plans.

Baral concludes, “Management believes neurologists are most likely to be the Nuplazid early adopters, despite being otherwise somewhat conservative in their prescribing habits. ACAD has not broken out Nuplazid prescribers to date by specialty, and we look forward to this detail as the launch matures.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ritu Baral is ranked #534 out of 4,129 analysts. Baral has a 46% success rate and realizes 5.1% in her annual returns. When recommending ACAD, Baral gains 2.2% in average profits on the stock.

TipRanks analytics demonstrate ACAD as a Strong Buy. Based on 9 analysts polled in the last 3 months, 7 rate a Buy on ACAD, while 2 maintain a Hold. The 12-month average price target stands at $47.14, marking a nearly 45% upside from where the shares last closed.