JPMorgan Reiterates Overweight Rating on Acadia Pharmaceuticals (ACAD)

JPMorgan analyst Cory Kasimov reiterated an Overweight rating on Acadia Pharmaceuticals (NASDAQ: ACAD)

The analyst comments "Our initial take is that the Nuplazid (pimavanserin) briefing docs posted this morning do not read as positively as the market is suggesting (ACAD shares up ~15% as of this writing and as much as 30%+ pre-market open). We still believe a panel offers the company its best – if not only – chance at a near term approval. However, the FDA clearly continues to have concerns on efficacy (none on safety), and ACAD’s post-hoc analyses have done little to change the agency’s stance. In our view, the fact that the single voting question is around the persuasiveness of efficacy and not specifically on benefit / risk adds to the uphill battle. All said, Friday’s debate largely boils down to ACAD’s ability to convince the panel that the efficacy profile is good enough without an additional pre-approval trial, especially in the face of a significant unmet need (which the FDA also acknowledges). While these documents slightly increase our concern on ADP, we still believe the overall risk/reward in ACAD is favorable at current levels (taking into consideration PDP and Rett) and thus maintain an OW 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 $16.25 yesterday.

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