JMP Securities analyst Jason Butler weighs in on shares of ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) after the biotech company reported second-quarter financial results that left the analyst feeling encouraged for the future of pipeline drug NUPLAZID, the first drug approved to treat hallucinations and delusions associated with psychosis experienced by some people with Parkinson’s disease. On the back of this, Butler reiterates a Buy rating and suggests a price target of $45.00, marking a 23% upside from where the stock is currently trading.
Acadia’s key pipeline drug is a catalyst well on track in Butler’s assessment. In its second quarter, Acadia came in with earnings just under both Butler’s projections as well as the Street’s estimates. Butler points to NUPLAZID as a cause of unanticipated selling expenses that exceeded the firm’s original expectations. However, Acadia closed the quarter with $413MM in cash, which Butler deems “sufficient to support NUPLAZID PDP launch efforts and development in additional indications.” Even in light of earnings that did not shatter the ceiling, for Butler, what matters is that even in “early days… initial feedback on NUPLAZID launch uptake is positive.”
As Acadia raises awareness through physician and patient awareness through the initiation of a new disease awareness program, PDP awareness has doubled. With double the awareness, the development and commercialization of the drug are building steady momentum. As NUPLAZID moves forward in Europe, with Acadia likely submitting a pediatric investigation plan soon, and a solid report of $97,000 in sales in the pipeline drug’s first month alone, Butler keeps his eyes peeled to the future, where Acadia’s success rests on its Parkinson’s disease psychosis (PDP) treating drug. For Butler, the path so far looks optimistic.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star rated Jason Butler has earned a high ranking of #172 out of 4,101 analysts. Butler upholds a 57% success rate and earns 30.3% in his average returns. When recommending ACAD, Butler realizes an average of 88.4% in profits.
TipRanks analytics exhibits ACADIA as a Buy. Based on 8 analysts polled in the last 3 months, 5 rate a Buy while 3 maintain a Hold. The consensus price target stands at $48.20, marking a 32% increase from where the shares last closed.
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