Yesterday, was a pretty eventful day for Acadia Pharmaceuticals (ACAD). After canceling investor meetings, there was quite a bit of speculation that Allergan (AGN) would be taking over Acadia Pharmaceuticals (ACAD). As a result, the value of the stock climbed throughout most of the day. However, toward the end of the day, the company announced that the CEO would be retiring effective immediately as well as the fact that they would be delaying the submission of the New Drug Application for their Parkinson’s Disease drug. As a result, the stock fell dramatically in after hours trading. Today, we’ll briefly discuss why Acadia Pharmaceuticals (ACAD) has delayed the new drug application, the mystery surrounding the surprise retirement of the CEO, take a look into how the stock reacted in after hours trading, and talk about what we can expect to see from Acadia Pharmaceuticals (ACAD) throughout the trading day today.
Why Did Acadia Pharmaceuticals (ACAD) Delay Their New Drug Application?
Any time a new drug application is delayed by a BioTech company, rumors start to fly about the effectiveness of the drug for which the application is to be submitted. However, Acadia Pharmaceuticals (ACAD) made it clear that effectiveness isn’t the reason for the delay. Instead, they simply don’t feel as though they’re ready for commercial manufacturing and distribution of the drug. In a statement, the current interim CEO, Steve Davis had the following to say…
“We have concluded that additional time is needed to complete the readiness of our commercial manufacturing systems…”
Acadia Pharmaceuticals (ACAD) CEO Retires
In other news, in many ways more importantly than the delay of the NDA, the CEO of Acadia made a surprise decision to retire yesterday. The decision was announced during the same announcement mentioned above. However, there wasn’t much of a reason for the Retirement. In the statement, Acadia Pharmaceuticals (ACAD) told investors that the CEO of the company would be retiring not only as CEO, but as a member of the board as well. While I don’t want to speculate, this news seems pretty bad to me as I haven’t seen examples of abrupt retirements of CEOs without solid reasons. However, we’ll have to wait to hear more as the reason for the retirement has not yet been released.
How The Company’s Stock Reacted After Hours
Because the announcement was made at the end of the day, Acadia Pharmaceuticals (ACAD) fell dramatically in after hours trading last night. After what seemed like it could be a positive day in the market, the company’s stock lost more than 22% of its value in a single night.
What We Can Expect From Acadia Pharmaceuticals (ACAD) Stocks Today
As morning trading commences today, it seems as though the stock won’t be making any dramatic recovery today. Currently, Acadia Pharmaceuticals’ stock price is at $34.69; down $10.06 per share from yesterday’s close. While it looks like the dramatic decline is pretty much over with; the stock is still falling at a fairly slow and steady rate. I would expect to continue seeing this type of movement throughout the week.
What Do You Think?
Do you think Acadia Pharmaceuticals (ACAD) stock will continue to fall or start a recovery throughout the rest of this week? Let us know in the comments below!