Replies to post #26177 on Biotech Values

[DewDiligence]

Acadia Shares Slip on Drug-Trial Results

[Some investors evidently misunderstood the ACAD PR announcing the results (#msg-10328435).]

http://biz.yahoo.com/ap/060324/acadia_stock.html?.v=2

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Friday March 24, 5:08 pm ET

Acadia Pharmaceuticals Shares Fall 4.9 Percent on Confusing Drug-Trial Results

NEW YORK (AP) -- Shares of Acadia Pharmaceuticals Inc. fell Friday after positive, but confusing, news regarding the trial of a drug that counteracts the side effects of treating Parkinson's disease.

Acadia's shares dropped 77 cents, or 4.9 percent, to close at $14.81 on the Nasdaq Stock Market. In the past year, the stock has more than doubled in price -- trading at a March 2005 low of $6.76 to $17.94 on March 17 of this year.

"People may not have understood (that) ACP-103 is not a drug to treat Parkinson's disease," Acadia Chief Executive Uli Hacksell said. "It's a drug that treats drug-induced psychosis. "We have a situation where ACP-103 will be very valuable because we can provide a means to get rid of the psychosis without worsening the disease," Hacksell said.

Thursday, after the financial markets closed, the San Diego-based biopharmaceutical company said its Phase II clinical trial of ACP-103 in patients with Parkinson's disease suffering from treatment-induced psychosis demonstrated that it didn't worsen motor function in the patients. ACP-103 was safe and well tolerated in patients with the disease, Acadia said.

Confusion stemmed from the company's press release that said: "The primary endpoint of the clinical trial was met by the demonstration that there was no statistical difference between the ACP-103-treated group and the placebo-treated group in motoric function."

"Sell the news, that's my initial reaction," said Canaccord Adams analyst Joseph Pantginis, who said the drop in share price was an overreaction. "No. 2 is the sense of confusion regarding the endpoint of the study -- they made their endpoint, but it's confusing."

Pantginis said that in most trials the goal is for results to be better than placebo, but in this case "you're looking at good signals from the study -- you don't want to see any worsening of the motoric side effects."

The stock has gradually gained ground since its May 2004 initial public offering, but shares surged after James Cramer gave the company several nods on his CNBC Mad Money show from January to early March, said Eun Yang, an analyst at Jefferies & Co.
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