Buy Rating for ACADIA Pharmaceuticals Based on Promising Drug Prospects and Financial Stability

Analyst Marc Goodman from Leerink Partners maintained a Buy rating on ACADIA Pharmaceuticals (ACAD – Research Report) and decreased the price target to $28.00 from $33.00.

Marc Goodman has given his Buy rating due to a combination of factors impacting ACADIA Pharmaceuticals. The company’s lead product, Daybue, despite hitting the lower end of the first-quarter sales guidance, shows promise with management optimistic about a recent uptick in patient numbers. Goodman’s confidence appears to stem from this optimism and the product’s potential, underscored by the fact that a significant number of diagnosed patients have yet to initiate treatment with Daybue. Taking into account the attractive valuation of the stock and the reaffirmed sales guidance for the year, Goodman maintains an Outperform position with a price target of $28.
Furthermore, the consistent performance of another of ACADIA’s products, Nuplazid, which met sales expectations, adds to the positive outlook. Growth in new patient starts for Nuplazid outpacing the market, alongside the company’s strategic focus on optimizing cash flow, supports the company’s financial stability. Additionally, advancements in the pipeline, including the progression of a Phase 3 study for a treatment in Prader-Willi syndrome and a Phase 2/3 study for Alzheimer’s disease psychosis, present further growth opportunities which contribute to Goodman’s Buy rating for ACADIA Pharmaceuticals.

In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $28.00 price target.

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ACADIA Pharmaceuticals (ACAD) Company Description:

ACADIA Pharmaceuticals, Inc. operates as a biopharmaceutical company focused on the development and commercialization of medicines to address unmet medical needs in central nervous system, or CNS, disorders. The firms product include Nuplazid, which is used for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. The company was founded by Mark R. Brann on July 16, 1993 and is headquartered in San Diego, CA.