ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD)
ACADIA Pharmaceuticals is having an incredible time in the market at the moment, and for good reason. The company recently announced incredibly positive news with regard to a treatment for Parkinson’s Disease Psychosis that it has been working on for some time now. Today, we’ll talk about the news, how the market is reacting, and what we can expect to see from ACAD.
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ACAD Submits A New Drug Application
On Monday, it was announced that ACADIA Pharmaceuticals had submitted a New Drug Application or NDA to the United States Food and Drug Administration. The NDA surrounds a treatment the company has been working on for quite some time, known as NUPLAZID. The treatment was designed for Parkinson’s Disease Psychosis. According to ACAD, the drug “provides clinically meaningful benefit, with robust improvements observed across multiple measures of psychosis that were achieved without causing adverse effects to motor function.”
What We’re Seeing In The Market
As investors, we know that any time there is news released with regard to a publicly-traded company, we can expect to see movement in the value of the stock associated with that company. Good news will lead to positive movement and bad news will cause declines. It’s no secret that the news surrounding ACADIA is overwhelmingly positive news. As a result, we’ve seen strong gains on the stock since Monday. Currently (9:31), ACAD is trading at $28.34 per share after a gain of $4.53 per share or 19.03% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive movement out of ACAD. The reality is that what they’ve done with NUPLAZID is absolutely amazing. Parkinson’s Disease Psychosis is an incredibly common problem and, as of today, the treatments used for it don’t have anywhere near the amounts of benefits that we see from NUPLAZID. I’ve been following the studies on the treatment since they started, and based on what I’ve seen, ACAD has come up with something that’s absolutely incredible here.
Now, it’s one thing to have a solid treatment, but it’s also important to look at the target market associated with the treatment when gauging the profitability of the treatment. In this particular case, the target market is gigantic. According to the National Parkinson Foundation, it is estimated that one million people in the United States and between four and six million people around the world suffer from Parkinson’s disease. It is also estimated that of the millions of people suffering from the ailment, about 40% of them have Parkinson’s Disease Psychosis. These people suffer with hallucinations, delusions, and a diminished quality of life. With that said, the new treatment offered by ACADIA is much needed in the treatment of Parkinson’s disease and will likely lead to incredible amounts of sales.
All in all, ACAD is an incredible company that has created a much needed product. With a strong management team and a proven ability in medical innovation, I’m expecting to see strong long-run gains out of ACAD.
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What Do You Think?
Where do you think ACAD is headed moving forward? Let us know your opinion in the comments below!
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