Acadia Pharmaceuticals Inc. ACAD is a San Diego, CA-based biopharmaceutical company, focused on developing innovative medicines to address unmet medical needs in central nervous system (CNS) disorders.
The company’s sole marketed drug, Nuplazid (pimavanserin), is the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis. The drug was launched in May 2016.
Acadia’s top line mainly comprises U.S. sales of Nuplazid. The company recognized revenues worth $517.2 million in 2022 compared with $484.1 million in 2021.
Let’s delve deeper to discuss four reasons why adding Acadia stock to your portfolio may prove beneficial in 2023.
Good Rank & Rising Estimates: In the past year, shares of Acadia dropped 32.4% compared with the industry’s 16.6% decline.
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Despite the poor price performance, Acadia carries a Zacks Rank #2 (Buy) at present.
Our estimates for revenues from Nuplazid sales suggest a CAGR growth of 7.2% over the next three years.
Nuplazid Sales Strong; Label Expansion Studies Ongoing: Sales of Nuplazid have improved steadily since its launch in May 2016. Nuplazid’s net sales for 2022 were $517.2 million, witnessing year-over-year growth of 7%.
Several additional studies on Nuplazid targeting different types of neurological and psychiatric disorders are presently ongoing. Studies on Nuplazid include schizophrenia-negative symptoms (phase III ADVANCE study). Acadia is currently evaluating Nuplazid in a phase III ADVANCE-2 study to evaluate its efficacy in patients with predominantly negative symptoms of schizophrenia who have achieved adequate control of positive symptoms with the existing antipsychotic treatment. Enrollment in the study is expected to be completed in the current year, reporting top-line results in early 2024. The company is also developing Nuplazid to treat other neuropsychiatric conditions.
A potential approval for any of the above indications will be a significant boost to the company.
Approval of Trofinetide, a Boost: On Mar 10, 2023, the FDA approved trofinetide for the treatment of Rett syndrome in adults and pediatric patients aged two years and older. The drug is to be marketed under the brand name Daybue and is expected to be made available in the United States by the end of April 2023.
Acadia’s partner Neuren Pharmaceuticals, per the exclusive license agreement, will pursue the development and commercialization of trofinetide for the treatment of Rett syndrome and other indications in North America. Currently, there are no approved medicines for treating Rett syndrome. The FDA has granted Rare Pediatric Disease designation to trofinetide for the given indication. The FDA has also issued Acadia, a Rare Pediatric Disease Priority Review Voucher, which can be used to obtain priority review for a subsequent application.
The approval will add an incremental stream of revenues to the top line.
Acadia faces competition from Anavex Life Sciences Corp. AVXL, currently conducting studies on possible treatment candidates for Rett syndrome. Anavex is currently evaluating Anavex 2-73 (blarcamesine), a small-molecule activator of the sigma-1 receptor, for the treatment of Rett syndrome in a phase II/III EXCELLENCE (Anavex 2-73-RS-003) study, among other neurological indications.
Last month, Anavex announced the completion of enrollment of 92 patients in its phase II/III EXCELLENCE study for the treatment of Rett Syndrome in patients aged 5 to 17 years. The company anticipates announcing top-line data from the study in the second half of 2023.
Despite the competition, Acadia enjoys a strong foothold in the CNS disorders market with Nuplazid and the newly approved Daybue. Nuplazid and Daybue together are expected to drive up revenues in the upcoming quarters. This is expected to give Acadia a comfortable edge over its competitors.
ACADIA Pharmaceuticals Inc. Price and Consensus
ACADIA Pharmaceuticals Inc. price-consensus-chart | ACADIA Pharmaceuticals Inc. Quote
Other Stocks to Consider
Some other top-ranked stocks in the same industry are Aptinyx APTX and ADMA Biologics ADMA, both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 44 cents. In the past year, shares of Aptinyx have fallen by 89.9%.
APTX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 6.56%.
In the past 90 days, the consensus estimate for ADMA’s 2023 loss per share has narrowed from 19 cents to 14 cents. In the past year, shares of ADMA have increased by 49.6%.
ADMA beat estimates in three out of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 2.88%.
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