Cowen’s Take On ACADIA Pharmaceuticals Inc. (ACAD) Following Presentation At The J.P. Morgan Healthcare Conference


Cowen analyst Ritu Baral weighs in today on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), after the drug maker provided an update focusing on the ongoing launch of Nuplazid in Parkinson’s Disease Psychosis as well as EU regulatory strategy and expanded indications for pimavanserin at the 35th Annual J.P. Morgan Healthcare Conference.

Baral noted, “Following stronger than expected 3Q16 revenues, management noted the Nuplazid launch continues to meet or slightly exceed their expectations, particularly in regards to gross-to-net discounting and payor reactions. Further, Nuplazid has been added to all Medicare Pt. D formularies and ~35% of commercial plans. 80% of these plans have minimal prior authorization requirements, requiring only PDP Dx certification. The strictest plans require a clozapine step edit, which has proven to be addressable. Only one plan has required a quetiapine step edit, and ACAD indicated no patient has been denied coverage. We find the broad payor coverage encouraging, and note that our KOL checks have indicated minor payor pushback thus far […] We also expect ACAD to continue physician awareness outreach, direct to patient programs as well as sampling programs in the foreseeable future.”

As such, Baral reiterated her Outperform rating on shares of ACADIA Pharmaceuticals, with a price target of $42, which represents a potential upside of 36% from where the stock is currently trading.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ritu Baral has a yearly average return of 3.9% and a 37% success rate. Baral has a -1.7% average return when recommending ACAD, and is ranked #976 out of 4340 analysts.

Out of the 14 analysts polled by TipRanks, 10 rate ACADIA Pharmaceuticals stock a Buy, while 4 rate the stock a Hold. With a return potential of 47%, the stock’s consensus target price stands at $45.30.