ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) announced positive top-line results from its Phase II exploratory study (-019 Study) of pimavanserin in patients with Alzheimer’s disease psychosis (AD Psychosis). As a selective serotonin inverse agonist (SSIA) preferentially targeting 5-HT2A receptors, pimavanserin has a different biological mechanism than other marketed antipsychotics.
Pimavanserin has been approved by the United States Food and Drug Administration (FDA) for hallucinations and delusions associated with Parkinson’s disease psychosis and currently is being studied in several other disease states, including AD Psychosis. The FDA has not approved any drug to treat AD Psychosis.
In this Phase II exploratory study, pimavanserin met the primary endpoint showing a statistically significant reduction in psychosis versus placebo as measured by the Neuropsychiatric Inventory-Nursing Home (NPI-NH) Psychosis score at week 6 of dosing (p=0.0451). Pimavanserin was generally well tolerated and the safety profile was consistent with what has been observed in previous studies.
“Alzheimer’s disease patients suffer from a number of debilitating symptoms, of which psychosis carries a poor prognosis and is associated with earlier placement into nursing homes,” said Steve Davis, ACADIA’s President and Chief Executive Officer. “Data from the -019 Study provide solid evidence that pimavanserin can improve psychosis in another major neurological disorder and provide strategic momentum for the further development of pimavanserin to address the needs of AD Psychosis patients.” (Original Source)
Shares of ACADIA Pharmaceuticals are currently rising 45.50% to $37.00, or up $11.57 in pre-market trading Tuesday. 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 $26.56 and its 200-day moving average is $31.19.
On the ratings front, ACADIA Pharmaceuticals has been the subject of a number of recent research reports. In a report issued on November 13, Leerink Swann analyst Paul Matteis reiterated a Hold rating on ACAD, with a price target of $29, which implies an upside of 14% from current levels. Separately, on November 8, Merrill Lynch’s Tazeen Ahmad reiterated a Buy rating on the stock and has a price target of $35.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Paul Matteis and Tazeen Ahmad have a yearly average return of 7.6% and 37.4% respectively. Matteis has a success rate of 53% and is ranked #625 out of 4288 analysts, while Ahmad has a success rate of 50% and is ranked #190.
Overall, 2 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 $43.25 which is 70.1% 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.