Cowen analyst Ritu Baral is out with a research report on shares of ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) after conducting separate surveys of 25 psychiatrists and 57 neurologists on experiences to-date with Nuplazid in Parkinson’s Disease Psychosis. For context, these are the two crucial prescriber populations the biotech firm’s commercial launch efforts are targeting.
Finding these physicians in favor of the firm’s key pipeline drug, the analyst reiterates an Outperform rating on ACAD with a $42 price target, which represents a 55% increase from current levels.
Baral opines, “One of our psychiatrist KOLs noted he believes psychiatrists treat more severe PDP patients (driven by more severe psychosis symptoms which occur with longer Parkinson’s disease duration), while neurologists treat mild PDP patients (being the first specialist to diagnose and treat Parkinsons Disease). We think differences in the severity of the treated patient population may be a reasonable driver of the many of the discrepancies between psychiatrists and neurologists across our surveys.”
The firm’s first quarter of sales came in a robust tide that the analyst believes was carried by positive physician reception, explaining, “We are particularly encouraged by what we view as solid willingness to prescribe by both psychiatrists and neurologists, which we think drove the stronger than expected first quarter of Nuplazid sales.”
Ultimately, “Our major takeaways are that physicians appear eager to trial/prescribe Nuplazid, and little payor pushback has been noted thus far. KOLs note experience thus far is too limited to drive conclusions on real-world efficacy,” Baral concludes.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Ritu Baral is ranked #976 out of 4,241 analysts. Baral has a 36% success rate and gains 3.1% in her annual returns. However, when recommending ACAD, Baral loses 9.0% in average profits on the stock.
TipRanks analytics exhibit ACAD as a Strong Buy. Out of 9 analysts polled in the last 3 months by TipRanks, 7 are bullish on ACADIA stock and 2 remain sidelined. With a return potential of 54%, the stock’s consensus target price stands at $41.63.
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