ACADIA Pharmaceuticals’ Legal Victory and Pipeline Expansion Drive Buy Rating and Increased Price Target

H.C. Wainwright analyst Andrew Fein has reiterated their bullish stance on ACAD stock, giving a Buy rating on May 16.

Andrew Fein has given his Buy rating due to a combination of factors including the recent legal victory for ACADIA Pharmaceuticals, which has extended the exclusivity of their drug Nuplazid until 2038. This court decision prevents generic competition, allowing ACADIA to maintain pricing control and reduce payer leverage, which is expected to enhance their commercial opportunities. The absence of generic competition provides ACADIA with the opportunity to focus on expanding their pipeline programs, particularly with Nuplazid and Daybue, as well as the development of ACP-204, which shows promise due to its improved pharmacokinetic and safety profile.
Furthermore, the upcoming Phase 3 trial results for ACP-101, expected in late 2025, could potentially lead to a launch in 2026 if the data is positive. The trial’s focus on hyperphagia-related behaviors through the Hyperphagia Questionnaire for Clinical Trials (HQ-CT) is crucial, and long-term data demonstrating significant clinical impact would reinforce the therapeutic potential of ACP-101. These developments, coupled with the strengthened business position following the patent ruling, have led to an increased price target from $27 to $32, supporting the Buy recommendation.

Fein covers the Healthcare sector, focusing on stocks such as Insmed, ACADIA Pharmaceuticals, and Neurocrine. According to TipRanks, Fein has an average return of -2.0% and a 38.95% success rate on recommended stocks.

In another report released on May 16, BMO Capital also reiterated a Buy rating on the stock with a $24.00 price target.