Why Acadia Pharmaceuticals Stock Rose 20.8% Yesterday

ACAD’s performance

On November 28, Acadia Pharmaceuticals (ACAD) stock closed at $20.53, which represents a ~20.76% rise from its close of $17.00 on November 27. Its level of $17 on November 27 was a fall of ~12.64% from its previous day’s close of $17.46.

Acadia Pharmaceuticals stock closed at $30.11 on December 29, 2017, and reached $20.53 at the close of market on November 28, reflecting ~32% year-to-date growth.

Why Acadia Pharmaceuticals Stock Rose 20.8% Yesterday

Reason for the stock price hike

On November 27, Acadia Pharmaceuticals announced a price of $17.00 per share for an underwritten public offering of 16,176,471 shares of its common stock. Acadia expects to close its offering on November 30.

Acadia’s financials in a nutshell

Acadia Pharmaceuticals’ net revenue in the first nine months of the year amounted to $164.2 million compared to $81.3 million in the same period last year. Analysts expect Acadia Pharmaceuticals to report net revenue of $223.2 million in fiscal 2018.

In the third quarter, Acadia Pharmaceuticals’ biopharmaceutical peers Tesaro (TSRO) and Intercept Pharmaceuticals (ICPT) generated revenues of $64.4 million and $46.99 million, respectively, reflecting a ~54.9% YoY (year-over-year) fall and a 13.37% YoY rise, respectively.

The revenue growth of Tesaro, Intercept Pharmaceuticals, and Acadia Pharmaceuticals could boost the share price of SPDR S&P Biotech ETF (XBI). Tesaro, Intercept Pharmaceuticals, and Acadia Pharmaceuticals make up ~1.32%, ~1.83%, and ~2.00% of XBI’s total portfolio holdings, respectively.

The company’s cost of product sales, license fees, and royalties over the first nine months of 2018 amounted to $13.9 million compared to $9.3 million in the same period last year.

Acadia Pharmaceuticals’ research and development and selling, general, and administrative expenses in the first nine months of 2018 totaled $139.0 million and $191.5 million, respectively, compared to $106.0 million and $188.4 million, respectively, in the same period of the previous year.

Acadia Pharmaceuticals’ net income and EPS in the first nine months of 2018 amounted to -$179.7 million and -$1.44, respectively, compared to -$220.5 million and -$1.81, respectively, in the same period last year.

Analysts’ recommendations

Of the ten analysts tracking Acadia Pharmaceuticals in November, seven have recommended “buys,” while three have recommended “holds” on the stock. None have recommended “strong buys” or “sells.”

On November 29, Acadia Pharmaceuticals had a consensus 12-month target price of $32.2, which represents a potential upside of ~56.84% over the next 12 months.