Leerink Swann Reiterates a Hold Rating on ACADIA Pharmaceuticals

By Jason Carr

In a report released yesterday, Paul Matteis from Leerink Swann reiterated a Hold rating on ACADIA Pharmaceuticals (NASDAQ: ACAD), with a price target of $29. The company’s shares opened today at $25.96.

Matteis said:

“We are updating our model to reflect reported results, 4Q16 guidance, tweaks to our agitation % share (risk-adj at 20%), and an increased OpEx run rate, the latter of which lowers our price target to $29 from $34. The pimavanserin (NUPLAZID) launch is off to a good start, with ACAD attaining $5.3MM in sales in the first full quarter, one in which there was likely a good deal of 30-day sampling. Mgmt believes that 4Q16 consensus of $8MM to $9MM is realistic for next quarter sales – we are thus updating our model to match this range and implied run rate. On the clinical side, ACAD recently initiated multiple additional trials in agitation and schizophrenia, and continues to expect ph2 data in Alzheimer’s Disease Psychosis (ADP) by the end of this year.”

According to TipRanks.com, Matteis is a 1-star analyst with an average return of -1.4% and a 44.0% success rate. Matteis covers the Healthcare sector, focusing on stocks such as Aquinox Pharmaceuticals, Paratek Pharmaceuticals, and Theravance Biopharma.

ACADIA Pharmaceuticals has an analyst consensus of Strong Buy, with a price target consensus of $42.

Based on ACADIA Pharmaceuticals’ latest earnings report from June 30, the company posted quarterly revenue of $97K and quarterly net profit of -$71.32M. In comparison, last year the company earned revenue of $39K and had a net profit of -$38.91M.

Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ACAD in relation to earlier this year.

ACADIA Pharmaceuticals, Inc. engages in the research, development, and manufacture of pharmaceutical products. It caters to patients with central nervous system disorders such as Parkinson’s disease, Alzheimer’s disease, Schizophrenia, chronic pain, and Glaucoma. Its portfolio consists of Nuplazid, Pimavanserin, Adrenergic, and Muscarinic. The company was founded by Mark R. Brann on July 16, 1993 and is headquartered in San Diego, CA.