Leerink Partners Downgrades Acadia Pharmaceuticals (ACAD) to Market Perform

Leerink Partners downgraded Acadia Pharmaceuticals (NASDAQ: ACAD) from Outperform to Market Perform with a price target of $35.00 (from $40.00) following FDA approval.

Analyst Paul Matteis commented, "We continue to believe that pimavanserin is one of the most differentiated commercial stage assets in CNS and could be attractive to multiple pot'l buyers, including BIIB (MP) and AGN (OP). However, should ACAD move ahead w/ an independent launch, we hold a more mixed view on the stock given: (1) our 2016, 2017 and 2018 revenue estimates are below consensus, and (2) our cautious view surrounding the ongoing Alzheimer's Disease Psychosis (ADP) study, where data are expected by YE16. Other indications such as AD Agitation or Lewy Bodies could offer LT upside, though the Agitation Ph2 is not yet underway."

The analyst said M&A could offer upside, but the possibility of a takeout is not enough to justify an OP rating.

For an analyst ratings summary and ratings history on Acadia Pharmaceuticals click here. For more ratings news on Acadia Pharmaceuticals click here.

Shares of Acadia Pharmaceuticals closed at $33.00 yesterday.

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