ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD)
ACADIA Pharmaceuticals is having an incredible day in the market today, and for good reason. Late Friday, the company announced positive news it had received from the FDA. One of the treatments the company has been working on has been approved. Today, we’ll talk about that treatment, how the market reacted to the news, and what we can expect to see from ACAD moving forward. So, let’s get right to it!
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ACAD Announces The Approval Of NUPLAZID
For some time now, ACADIA Pharmaceuticals has been working on a treatment for hallucinations and delusions that are associated with Parkinson’s disease psychosis. That treatment is known as NUPLAZID or pimavanserin. On Friday, the company announced that the FDA has approved NUPLAZID as a breakthrough therapy to treat hallucinations and delusions associated with Parkinson’s disease psychosis. NUPLAZID is the first treatment of its kind, and the only FDA approved treatment designed for this indication. In a statement, Steve Davis, President and CEO at ACAD, had the following to say with regard to the approval:
“NUPLAZID represents a major medical advancement for patients with Parkinson’s disease psychosis who suffer from hallucinations and delusions… We are grateful to the many patients and investigators who participated in NUPLAZID’s clinical studies. NUPLAZID represents the culmination of many years of work across our entire organization to bring this novel medicine, discovered by our scientists to patients in need.”
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the company as a result. Adversely, when negative news is released, we can expect to see declines. Considering the fact that NUPLAZID has been approved, the news surrounding ACAD is overwhelmingly positive. As a result, we’re seeing strong positive movement in the market surrounding the news. Currently (9:27), the stock is trading at $33.96 per share after a gain of $1.66 per share or 5.14% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion with regard to what we can expect to see from ACAD. The reality is that the FDA’s decision to approve NUPLAZID is an overwhelmingly positive decision for ACADIA. Currently, there is a major medical need for the treatment the company is now approved to offer. According to the National Parkinson’s Foundation, in the United States, there are about one million people that suffer from this condition and between four and six million around the world. It is estimated that about 40% of the patients that are dealing with Parkinson’s disease also are forced to deal with Parkinson’s disease psychosis. This means that ACAD has a relatively large audience for the treatment that it has created. Additionally, beyond NUPLAZID, ACAD has an incredibly strong company. They have a wide range of both approved treatments, and treatments that they are working on. With strong management, an incredible team, and great products, it only makes sense that this stock will soar from here.
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What Do You Think?
Where do you think ACAD is headed and why? Let us know your opinion in the comments below!
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