Acadia Pharmaceuticals Inc (ACAD)

Acadia Pharmaceuticals Inc (ACAD) stock fell by 17.20% due to disappointing results from a Phase 3 study for its antipsychotic drug, Nuplazid, aimed at treating the negative symptoms of schizophrenia. The study, called Advance-2, showed that placebo patients had a significant 11.1-point improvement on a scale measuring these symptoms, compared to an 11.8-point improvement for Nuplazid recipients.

• Impact on Nuplazid Expansion: The outsized placebo effect observed in the study led Acadia Pharmaceuticals to announce that it will not conduct any further clinical trials with pimavanserin, the active ingredient in Nuplazid, for schizophrenia. This decision caused a sharp decline in Acadia's stock price, which reached its lowest point since April of the previous year.
• Market Reaction and Analyst Comments: Acadia's stock market performance was negatively impacted by this news, with shares plunging to $19.98. Mizuho Securities analyst Uy Ear slashed his price target on Acadia stock from $39 to $25 and downgraded shares to a neutral rating, citing the lack of near-term major catalysts in 2024.
• Focus on Other Areas: Acadia Pharmaceuticals is now focusing on its Daybue launch, a treatment for Rett syndrome, a disease that affects girls and causes loss of coordination, speech, and hand function over time. The company is also running studies for potential treatments for Prader-Willi syndrome and Alzheimer's disease psychosis, although results from these tests are not expected until 2025 or 2026.

Acadia Pharmaceuticals (ACAD) dropped 15.83% after a patent hearing regarding its drug Nuplazid, which is used to treat Parkinson's disease. Acadia filed separate lawsuits last October alleging that copies of Nuplazid infringed a patent, including a lawsuit against MSN Laboratories.

https://seekingalpha.com/news/4016373-acadia-pharmaceuticals-fall-after-patent-hearing-in-dispute-with-msn