Bank of America Securities analyst Tazeen Ahmad reiterated a Hold rating on ACADIA Pharmaceuticals (ACAD – Research Report) yesterday and set a price target of $30.00.
Tazeen Ahmad has given his Hold rating due to a combination of factors including ACADIA Pharmaceuticals’ recent clinical trial outcomes and valuation adjustments. The company’s phase 3 trial for pimavanserin in treating negative symptoms of schizophrenia (NSS) failed to meet its primary endpoint, leading to a decision not to continue its development. Ahmad’s expectations align with key opinion leaders who had anticipated low success rates for the trial, acknowledging the historical challenges in treating NSS. Moreover, the valuation of the company’s pipeline projects has been reduced, affecting the overall financial outlook.
The focus has now shifted to ACADIA’s commercial performance, particularly regarding Daybue for Rett syndrome, as well as ongoing trials for other treatments. Ahmad has adjusted the discounted cash flow-based model, resulting in a lowered pipeline value and a reduced price objective from $33 to $30. Despite these setbacks, the Neutral rating suggests that while near-term catalysts for significant stock appreciation may be limited, the current commercial activities and pipeline development still hold some potential for value creation, thus warranting a Hold rather than a Sell rating.
Ahmad covers the Healthcare sector, focusing on stocks such as Sarepta Therapeutics, Apellis Pharmaceuticals, and ACADIA Pharmaceuticals. According to TipRanks, Ahmad has an average return of 1.8% and a 49.28% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also downgraded the stock to a Hold with a $25.00 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.
Read More on ACAD:
- Acadia Pharmaceuticals should be bought on weakness, says Mizuho
- Australian Stocks: Neuren’s (NEU) Daybue Sales Fail to Impress, Shares Plunge
- Acadia Pharmaceuticals provides FY24 product sales guidance
- Acadia Pharmaceuticals reports Q4 EPS 28c, consensus 30c
- ACADIA Pharmaceuticals Inc. (ACAD) Q4 Earnings Cheat Sheet
