Optimistic Outlook for ACADIA Pharmaceuticals Despite Recent Setback: Buy Rating and $32 Price Target

In a report released today, Marc Goodman from Leerink Partners reiterated a Buy rating on ACADIA Pharmaceuticals, with a price target of $32.00.

Marc Goodman has given his Buy rating due to a combination of factors, despite the recent setback with ACADIA Pharmaceuticals’ ACP-101 not meeting its primary endpoint in the Phase 3 trial for Prader-Willi syndrome. Goodman had anticipated this outcome, given the drug’s previous mixed results and failure in another Phase 3 trial. The stock’s decline was slightly more than expected, but Goodman remains optimistic about the company’s future prospects.
Goodman believes that ACADIA’s core business will continue to perform well and sees potential in the company’s pipeline, which he feels is undervalued at current levels. He is particularly optimistic about the upcoming data for ACP-204 in Alzheimer’s disease psychosis and other early-stage pipeline developments. These include ACP-204’s Phase 2 trial in Lewy body dementia, ACP-211’s Phase 2 trial in major depressive disorder, and ACP-271’s first-in-human testing for tardive dyskinesia and Huntington’s disease. This optimism underpins his Outperform rating and a price target of $32.

In another report released today, Needham also reiterated a Buy rating on the stock with a $28.00 price target.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ACAD in relation to earlier this year.