J.P. Morgan analyst Cory Kasimov remains confident on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) after hosting a Healthcare Conference where ACAD CEO Stephen Davis spoke on behalf of the firm. On the heels of the conference, the analyst reiterates an Overweight rating on ACAD without suggesting a price target.
For Kasimov, the most pressing takeaways from Davis’ presentation are the following: “The company is 1) expanding its Nuplazid sales force from 133 to ~155 reps to increase penetration into long-term care, and 2) deferring the MAA filing based on the positive ADP data (goal is to maximize benefit from the 10 yr exclusivity period in the EU to potentially include additional indications). Overall, the US PDP launch continues to progress in line with the company’s initial expectations.”
To provide some context, the analyst underscores, “Negative symptoms associated with schizophrenia have long been perceived as the biggest unmet need for the disease; 40-50% of pts suffer from prominent negative symptoms and there is currently no approved treatment. ACAD’s goal is to boost the signal by layering on Nuplazid to current antipsychotic therapy,” adding that even one point reduction in hallucination frequency as well as severity could cut back on hallucinations, taking them from occurring every day to a far-improved rate of weekly episodes.
Also in ACAD’s favor, the analyst adds, “Anecdotal feedback has been positive, there has been a strong reaction from patients and docs,” further bolstering his bullish perspective on ACAD’s prospects.
After the recently released Phase II data-readout in Alzheimer’s Disease Psychosis (ADP), the firm believes the results were indicative of an efficacy signal. “[..] equally important the co has a clear vision of how to go forward. For now, focus is to take learnings and apply them to the next study,” Kasimov surmises.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, Cory Kasimov is ranked #4,250 out of 4,351 analysts. Kasimov has a 36% success rate and loses 9.5% in his yearly returns. When recommending ACAD, Kasimov earns 0.0% in average profits on the stock.
TipRanks analytics demonstrate ACAD as a Strong Buy. Based on 8 analysts polled by TipRanks in the last 3 months, 6 rate a Buy on ACAD stock while 2 maintain a Hold. The 12-month average price target stands at $38.17, marking a nearly 24% upside from where the stock is currently trading.
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