ACADIA Pharmaceuticals (ACAD) Stock: Is An Acquisition Coming?

ACADIA Pharmaceuticals Inc (NASDAQ: ACAD)

Acadia Pharmaceuticals is having a strong start to the trading session this morning, following up on the gains that we saw on the stock yesterday. If you look into the reason for the gains, you’re not going to find much by way of fundamental data. While there hasn’t been bad news recently, there hasn’t been much by way of good news either. So, what’s going on with ACAD? Today, we’ll talk about why we’re seeing gains and what we can expect to see from the stock moving forward.

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Why ACAD Is Gaining In The Market

As mentioned above ACADIA Pharmaceuticals had a great trading session yesterday that’s being followed up by more gains today. With little by way of strong fundamental news coming out of the company, many investors are asking a big question… Why is ACAD skyrocketing? Well, the answer is simple.

It seems like it was just yesterday that talks of an acquisition were revolving around the stock. OK, well, it was a few weeks ago. However, as with most rumors, the conversation revolving around a possible acquisition fell off of the map relatively quickly. Nonetheless, the rumors are starting to surface yet again. After a recent announcement that Pfizer would be acquiring Anacor Pharmaceuticals, investors have been looking for the next possible acquisition, and the overwhelming opinion seems to be that the acquisition will be one of ACAD.

Is This A Realistic Expectation?

First and foremost, I never make rumor-based trades, and you shouldn’t either. The reality is that most rumors pan out to be just that – rumors! With that said, I wouldn’t go buying ACADIA Pharmaceuticals at the moment simply in hopes of an acquisition happening. However, it’s not an unreasonable expectation either. In fact, recently ACAD explained that it was exploring strategic options, including, but not limited to, the sale of its company. On top of that, there are several companies in the pharmaceutical sector that have shown interest in purchasing the company. Some companies that have the capital and a good reason to acquire ACAD include Biogen, Teva Pharmaceutical Industries, and Allergan. With the previous announcement, a few perfect suitors with the money to purchase the company, and possible pressure coming from investors, the concept of an acquisition is indeed a very real possibility.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from ACADIA Pharmaceuticals. However, this opinion has nothing to do with the possibility of an acquisition. The reality is that ACAD has several strong products that have already been approved and are on the market. They also have an incredibly impressive pipeline. These factors in combination with a strong team and great management will likely lead to long-run gains. With the strong view I have that ACAD is going to grow in the long run, the concept of an acquisition is nothing more than icing on the cake for me.

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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!

[Image Courtesy of Pixabay]

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