Analyst Sean Laaman of Morgan Stanley maintained a Hold rating on ACADIA Pharmaceuticals, retaining the price target of $24.00.
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Sean Laaman has given his Hold rating due to a combination of factors impacting ACADIA Pharmaceuticals. The recent failure of ACP-101 in the Phase 3 COMPASS PWS trial, where it did not meet its primary endpoint, has led to a decision to discontinue its development. Despite this setback, the impact on the company’s valuation is minimal due to the low probability of success initially assigned to the drug.
ACADIA Pharmaceuticals still holds potential for long-term growth, supported by its two approved products, Nuplazid and Daybue, which are expected to generate significant sales. The company’s robust pipeline, with multiple programs in various stages of development, offers further opportunities for advancement. Consequently, the Hold rating reflects a balanced view, considering both the recent trial failure and the promising aspects of the company’s future prospects.
In another report released on September 15, Bank of America Securities also maintained a Hold rating on the stock with a $27.00 price target.