Needham & Company Assumes Acadia Pharmaceuticals (ACAD) at Hold

Needham & Company analyst Ami Fadia assumes coverage on Acadia Pharmaceuticals (NASDAQ: ACAD) with a Hold rating.

The analyst commented, "LOOKING FOR BETTER VISIBILITY INTO PDP GROWTH AND DRP APPROVAL. Our investment thesis is three-fold: (1) We are on the sidelines as we look for clarity on the path to approval for Nuplazid DRP indication by YE21; (2) On Nuplazid’s PDP indication, while near term growth through the pandemic remains a question, we believe it can grow to >$800M in 2026 and >$1B in 2028; and (3) Acadia has several pipeline assets, the most advanced of which are Trofinetide for Rett's and Nuplazid for negative symptoms of schizophrenia; however, growth from these opportunities is well understood.

THOUGHTS ON THE STOCK: ACAD is -70% YTD (versus +20% for the S&P 500) following the FDA's CRL on the DRP indication and a reduction in 2021 guidance due to impact of the pandemic. We believe investors will need to be patient to get visibility into growth.

For an analyst ratings summary and ratings history on Acadia Pharmaceuticals click here. For more ratings news on Acadia Pharmaceuticals click here.

Shares of Acadia Pharmaceuticals closed at $17.02 yesterday.

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