Acadia Pharmaceuticals initiated with an Outperform at BMO Capital

BMO Capital analyst Keith Tapper initiated coverage of Acadia Pharmaceuticals with an Outperform rating and $31 price target. The analyst believes the shares are valued on the company’s commercial assets Nuplazid and Daybue, with “negative skew” from label expansion setbacks and challenging patient dynamics, respectively. The firm sees share upside on improving commercial sentiment and Acadia’s pipeline execution, namely the Phase 2 dats for ACP-204 in Alzheimer’s disease psychosis, and Phase 3 data for ACP-101 in Prader-Willi syndrome.