Shares of Acadia Pharmaceuticals Inc. ACAD,
fell 42.1% on Tuesday to accelerate all declines in the futures market, following the company’s announcement that the Food and Drug Administration had found unknown deficiencies in the supplementary new drug application (NDA) for pimavanserin, a treatment for hallucinations and errors associated with dementia-related psychosis. The company said late Monday that the FDA’s identification of shortcomings precludes the discussion of labeling and post-marketing requirements. But the FDA did not specify the shortcomings he identified, Acadia said. Raymond James analyst Danielle Brill led to a downgrade of Acadia to a better buy than a strong buy, lowering the price target from $ 65 to $ 35. “We have no good guesses about the ‘shortcomings’ the FDA has found, but one thing is clear: the outlook for DRP suddenly looks pretty bad,” Brill wrote in a note to customers. Stifel Nicolaus’ Paul Matteis lowered his rating to like to buy and his price target from $ 68 to $ 27. “Not to defend the stock against weakness; DRP outlook looks bleak and difficult for us to be confident,” wrote Matthew. The stock, which is on track to see the lowest price since September 2019 during regular sessions, has lost 12.5% over the past three months to Monday, while the S&P 500 SPX,
achieved 4.0%.
