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ACADIA Pharmaceuticals (ACAD) Shares Rise Sharply on Pimavanserin Update

October 6, 2009 12:43 PM EDT
ACAD Hot Sheet
Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
ACADIA Pharmaceuticals (Nasdaq: ACAD) is higher today after the company announced that they will continue testing pimavanserin in Parkinson's, despite news on September 1st of disappointing top-line results from the first Phase III PDP trial. ACADIA and partner Biovail also intend to pursue adjunctive therapy with pimavanserin for schizophrenia as a third indication in the collaboration.

Analysts from Needham maintain their HOLD rating, stating "Biovail's commitment to the pimavanserin program is encouraging and we remind investors of the compound's long-term potential in a range of CNS indications. However, we remain cautious overall given the weak efficacy signal in PDP and the reduced clinical news flow in the near term."

However, an analyst from Piper Jaffray maintained their UNDERWEIGHT rating. Piper Jaffray states that due to the failure of the 012 trial, and the lack of a 40mg dose, they do not expect the ongoing Phase IIi trial to succeed. They state that "...any approval in this indication is likely several years away and ACADIA's upside is limited to a 15% royalty."

ACADIA is up 23% to $2.04 intraday.

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