ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) announced the initiation of ENHANCE-1, a Phase III study to evaluate pimavanserin for adjunctive treatment of schizophrenia in patients with an inadequate response to current antipsychotic therapy. Current antipsychotics approved for schizophrenia primarily target the dopaminergic pathway. As a selective serotonin inverse agonist (SSIA), pimavanserin is a new class of antipsychotic medication with a distinct mechanism of action targeting serotonergic 5-HT2A receptors while avoiding activity at dopamine and other receptors commonly targeted by other antipsychotics.
“About 30 percent of patients with schizophrenia do not achieve an adequate response to a single antipsychotic medication, and as a result more than one in four schizophrenia patients are treated with two or more antipsychotics,” said Serge Stankovic, M.D., M.S.P.H., ACADIA’s Executive Vice President, Head of Research and Development. “We believe pimavanserin, through its highly selective mechanism of action, could provide an important new option for adjunctive treatment of schizophrenia and improve clinical outcomes by both augmenting the efficacy of currently used antipsychotics and lessening the undesirable side effects associated with polypharmacy.” (Original Source)
Shares of ACADIA Pharmaceuticals are currently trading at $21.85, down $0.15 or -0.68%. ACAD has a 1-year high of $42.49 and a 1-year low of $16.64. The stock’s 50-day moving average is $30.37 and its 200-day moving average is $33.12.
On the ratings front, ACAD stock has been the subject of a number of recent research reports. In a report issued on October 24, Needham analyst Alan Carr reiterated a Buy rating on ACAD, with a price target of $49, which represents a potential upside of 123% from where the stock is currently trading. Separately, on October 19, Roth Capital’s Michael Higgins initiated coverage with a Hold rating on the stock and has a price target of $25.
According to TipRanks, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alan Carr and Michael Higgins have a yearly average return of 3.0% and a loss of 19.7% respectively. Carr has a success rate of 39% and is ranked #755 out of 4165 analysts, while Higgins has a success rate of 24% and is ranked #3963.
Overall, 3 research analysts have assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $49.00 which is 122.7% above where the stock closed yesterday.
ACADIA Pharmaceuticals, Inc. engages in the research, development, and manufacture of pharmaceutical products. It caters to patients with central nervous system disorders such as Parkinson’s disease, Alzheimer’s disease, Schizophrenia, chronic pain, and Glaucoma. Its portfolio consists of Nuplazid, Pimavanserin, Adrenergic, and Muscarinic.