ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD)
ACADIA Pharmaceuticals didn’t have the best of days in the market yesterday. In fact, the stock ended the day at $25.43 per share after falling $0.55 per share, or 2.12%. Nonetheless, the stock is doing exceptionally well in pre-market today. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to ACAD ahead.
What We’re Seeing From ACAD
As mentioned above, ACADIA Pharmaceuticals didn’t have the best of days in the market yesterday. In fact, the stock closed the day down 2.12%. In after-hours trading, we saw more of the same for a short while. That is, until early this morning. At the moment, the stock is screaming upward in pre-market trading. Currently (7:15), ACAD is trading at $37.00 per share after a gain of 45.50% thus far in pre-market trading.
Why The Stock Is Climbing
As usual, our partners at Trade Ideas were the first to inform us that ACAD was making a run for the top. As soon as they did, the CNA Finance team started working to see exactly what was causing the movement. In this particular case, it didn’t take long to uncover the story. It seems as though the gains are being caused by the release of positive clinical study data.
Early this morning, ACADIA Pharmaceuticals released positive results from a Phase 2 exploratory study. The study looked into pimavanserin as a treatment for patients with Alzheimer’s disease psychosis.
During the study, pimavanserin proved to meet its primary endpoint. That endpoint was showing a statistically significant reduction in psychosis versus placebo as measured by the Neuropsychiatric inventory-Nursing Home Psychosis score at week 6. Overall, the treatment proved to be generally well-tolerated and the safety profile of the treatment was consistent with what has been observed in previous studies. IN a statement, Steve Davis, President and CEO at ACAD, had the following to offer:
“Alzheimer’s disease patients suffer from a number of debilitating symptoms, of which psychosis carries a poor prognosis and is associated with earlier placement into nursing homes… Data from the -019 Study provides solid evidence that pimavanserin can improve psychosis in another major neurologicl disorder and provide a strategic momentum for the further development of pimavanserin to address the needs of AD Psychosis patients.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ACAD. In particular, we’re interested in the company’s next steps following Phase II. We’ll keep a close eye on the news and bring you the updates as they become available.
Update – ACAD will be hosting an investor call at 9:00 AM to discuss findings.
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