Has Wall Street gone a bit overboard punishing ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)? The drug maker’s share price continues to fall Wednesday on the heels of a disappointing 4Q earnings. Specifically, the company reported $43.6 million in 4Q17 Nuplazid sales, compared to consensus estimates of $44.3 million.
Cowen analyst Ritu Baral commented, “Investors’ main concern is on continuing unit growth of Nuplazid. Many fear the multiple price increases in 2017 signal the slow down in Nuplazid’s unit sales.”
To the company’s credit, the annual guidance of $255-270 million brackets consensus estimates of $260 million.
“We believe ACAD can comfortably meet its 2018 guidance due to the current continued momentum of Nuplazid’s launch and organic unit growth, although meeting Q1 guidance will be critical in solidifying investor confidence,” Baral added.
ACADIA CEO Steve Davis stated, “Our 2017 results reflect the robust uptake of NUPLAZID (pimavanserin) in the treatment of Parkinson’s disease psychosis […] We were also very pleased to receive Breakthrough Therapy Designation from the FDA as we explore the utility of pimavanserin in dementia-related psychosis, where no drug is currently approved. This is the second Breakthrough Therapy Designation for pimavanserin.”
“As we look to 2018, we anticipate continued strong volume growth for NUPLAZID. In addition, we look forward to advancing our late-stage clinical programs in dementia-related psychosis, schizophrenia inadequate response and schizophrenia negative symptoms, as well as sharing the top-line results of our CLARITY study in major depressive disorder in the second half of 2018,” Davis added.
Most on Wall Street anchor a bullish perspective on ACADIA, as TipRanks analytics showcase ACAD as a Buy. Based on 7 analysts polled in the past 12 months, 6 rate the stock a Buy, while only one recommends a Hold. The 12-month average price target stands at $52.83, marking a nearly 106% downside from where the stock is currently trading.
ACADIA is a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders.