ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) Stock Wins Big

2121 0 0 0 0 0 (4)

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) stock ran up nearly 27% Thursday, taking off from 15.20 USD and ending trading around 19.80 USD. The price hike comes after the FDA reviewed a previous report on one of their drug's, Nuplazid, side effects. Upon review, the FDA couldn't find, "any new or unexpected safety findings with Nuplazid, or findings that are inconsistent with the established safety profile currently described in the drug label."

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) Stock Wins Big

Nuplazid, which gained FDA approval in 2016, is ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) drug to treat delusion and hallucinations associated with Parkinson's disease. The drug comes with a warning that it may cause an "increased risk of death" in elderly patients. A CNN report in April focused on 700 deaths and pointed to the drug as a possible cause. The newest FDA review looks at deaths reported to the FDA Adverse Events Reporting System and found, "In FAERS reports that included a cause of death, there was no evident pattern to suggest a drug effect. Overall, the postmarking data were consistent with the safety data obtained from the pre-marketing controlled clinical trials."

Enter MatriX & Create Your Own Interactive Charts

So now that the FDA says Nuplazid is as safe as ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) claims it is, is the company ready for a turn-around. The stock is at it's lowest point since 2013 but that doesn't make it a buy just yet. Unfortunately, on a fundamental level, this company has quite a few problems. The biggest problem is their debt, which is fast outpacing their income. Their debt to asset ratio is at one of the highest points it has ever been and doesn't seem to show signs of improvement. Not only this but the company has fallen behind, both it's own, and analyst estimates consistently without fail. 

Register now for the world's best investment ideas

ACAD shares may continue to run up for a little while due to sheer momentum and news. Personally, I would like to see something more substantial than an FDA report reaffirming a drug is only as dangerous as it says it is. I'll be waiting for their next earnings report to see if they finally beat estimates for once before I feel bullish on this stock. Analysts are quick to put a buy rating on this, but I feel more skeptical until I see more solid results.



Comments (4)

image
  • Scott
  • ,  Contributor
  • 24 September 2018, 11:09 am

This ought to be a pretty good short squeeze, short interest was at nearly 16% of float before the announcement - that was 9 days to cover according to the NASDAQ short interest site

   0   Reply (0)   Follow(437)  

    image
    • Jesse
    • ,  Contributor
    • 24 September 2018, 11:09 am

    From Merrill Lynch and Research Analyst Tazeen Ahmad: Nuplazid monthly scripts data show improvement in LTC channel LTC prescription data support positive outlook VIA IMS and Symphony Health Solutions (SHS) monthly scripts data of Nuplazid suggest improv

       0   Reply (0)   Follow(437)  

      image
      • John R
      • ,  Contributor
      • 24 September 2018, 11:09 am

      FDA released statement - no new safety risks.\n

         0   Reply (0)   Follow(437)  

        image

        BAKER BROS, we are going $22 today\n

           0   Reply (0)   Follow(437)  

          Recent Updates

          •   
            Mar 6, 2019 11:15 PM

            DENTSPLY SIRONA Inc - Consumables Revenue

          •   
            Mar 6, 2019 11:15 PM

            DENTSPLY SIRONA Inc - Europe Revenue

          •   
            Mar 6, 2019 11:15 PM

            DENTSPLY SIRONA Inc - United States Revenue

          •   
            Mar 6, 2019 11:15 PM

            DENTSPLY SIRONA Inc - Rest of World Revenue

          •   
            Mar 6, 2019 11:15 PM

            DENTSPLY SIRONA Inc - Technologies and Equipment Total Net Sales ex. PM sales Revenue

          •   
            Mar 6, 2019 11:15 PM

            DENTSPLY SIRONA Inc - Technologies and Equipment Revenue