Deutsche upgrades Acadia to Buy on new ‘valuation floor’

Deutsche Bank last night upgraded Acadia Pharmaceuticals (ACAD) to Buy from Hold with a price target of $35, up from $20. After last week’s positive Nuplazid patent litigation outcome which helps extend the product’s lifecycle to 2038, Acadia shares “have established a new valuation floor,” the analyst tells investors in a research note. The firm now sees an attractive setup ahead of the Phase 3 data in Prader Willi syndrome in early Q4. The firm says the company’s intellectual property win verses generics manufacturer Aurobindo and other filers provides greater visibility on Nuplazid revenues post 2030, which leads it to raise outer year estimates and adds $9 per share to the stock’s valuation.