Approved by the U.S. Food and Drug Administration (or FDA), Acadia Pharmaceuticals’ (ACAD) Nuplazid (pimavanserin) is the first and only drug currently approved for Parkinson’s disease (or PD) psychosis. The company has focused its resources on successfully executing the commercial launch of the drug for the approved indication in the US. While one million patients in the US are currently afflicted with PD, around 40% of these patients suffer from PD psychosis involving hallucinations and delusions. PD psychosis is expected to affect half of PD patients over their lifetime. These statistics highlight the severity of the condition and untapped market potential for Nuplazid.
Further, Acadia Pharmaceuticals considers the advancement of this drug in five additional indications including the treatment of Alzheimer’s disease (or AD) psychosis and lifecycle management of AD agitation, schizophrenia inadequate response, negative symptoms of schizophrenia, and major depressive disorder to be other key priorities for 2017.
If Acadia Pharmaceuticals manages to report significant progress in its pimavanserin research programs, it could have a favorable impact on the company’s stock as well as on the SPDR S&P Biotech ETF (XBI). Acadia Pharmaceuticals makes up about 2.3% of XBI’s total portfolio holdings.
Analysts’ recommendations for Acadia Pharmaceuticals
Of the nine analysts covering Acadia Pharmaceuticals in September 2017, two rated the stock a “strong buy,” six rated it a “buy,” and one rated it a “hold.”
Of the six analysts covering Ligand Pharmaceuticals (LGND) in September 2017, ~83% rated the company a “buy.” Approximately 77% of the 22 analysts covering BioMarin Pharmaceutical (BMRN) gave it a “buy” recommendation, while 83% of the 18 analysts tracking Jazz Pharmaceuticals (JAZZ) rated it a “buy.”
In the next part, we’ll look at Acadia Pharmaceuticals’ revenue growth prospects.