Acadia Pharmaceuticals Inc. (ACAD)

[chmcnfunds]

You should have written the SA Blog:

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Acadia Pharmaceuticals (NASDAQ:ACAD) has continue to drift down over the last week. Leerink Swann initiated the shares as a Market Perform with a $34 price target yesterday. However, the analyst did have some optimism in his notes ""We continue to believe that pimavanserin (NUPLAZID) is one of the most differentiated commercial stage assets in CNS and could be attractive to multiple potential buyers, including BIIB (MP) and AGN (OP). However, we are resuming coverage with a neutral view on the stock based on (1) our belief that the pimavanserin roll-out will be slow and steady, given the drug's high price tag and the intrinsic challenges associated with assisting high out-of-pocket cost for Medicare patients and (2) our caution surrounding the upcoming readout for pimavanserin in Alzheimer's Disease Psychosis {ADP}, for which we believe there exists at least some credit in the stock today."

Piper Jaffray is a bit more enthusiastic this morning as they reissue their Buy rating with a $44 price target. Its analyst notes that Nuplazid will probably have a slow rollout but should eventually garner near $1 billion in annual sales.

Acadia feels very much like Relypsa (NASDAQ:RLYP) did early this year. The company will have initial challenges moving from a development firm to a commercial one. The stock will also ebb & flow on every new buyout rumor or lack thereof. In the end, I think the company will share a similar fate with Relypsa that was bought out in July for a 60% premium although I don't see a deal until the first half of 2017 and the most logical suitor remains Biogen (NASDAQ:BIIB).
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http://seekingalpha.com/article/4010277-biotech-forum-daily-digest-follow-progenics-dynavaxs-roller-coaster-week-spotlight-scynexis

ACAD