RBC Capital on Acadia Pharmaceuticals (ACAD): 'shares remain fundamentally undervalued'

RBC Capital analyst Brian Abrahams reiterated an Outperform rating and a $37.00 price target on Acadia Pharmaceuticals (NASDAQ: ACAD), following a joint stipulation filed by ACAD and generic drugmaker Zydus to dismiss all claims and counterclaims in their pimavanserin (Nuplazid) patent litigation without prejudice.

The dismissal was filed one month before a scheduled November 2 trial, after more than a year of litigation. Zydus had been seeking generic approval for a 34 mg pimavanserin tablet, a formulation distinct from the approved 34 mg capsule. Settlement terms were not disclosed.

Abrahams noted that ACAD still has an outstanding case with Aurobindo/MSN at the Federal Circuit (Docket 25-1875), with oral arguments scheduled for November 9, 2026. That case centers on the validity and infringement of the '721 formulation patent protecting Nuplazid's 34 mg capsule through August 2038, for which a district court previously ruled in favor of ACAD.

The analyst estimated Nuplazid sales of approximately $780 million for fiscal year 2026, with peak sales likely just below company guidance of approximately $1 billion. ACAD shares closed at $19.95.

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