Analysts Say Acadia's Negative Pain Data Increases Focus On Pimavanserin For Alzheimer's-Related Psychosis

Acadia Pharmaceuticals Inc ACAD announced the primary endpoint miss of the phase 2 POC study of ACP-044 in acute postoperative pain following bunionectomy, a surgical procedure that moves toes back into the correct position.
RBC Capital Markets writes that although trends of pain reduction were observed in the 400 mg QID ACP-044 arm compared to the placebo, the difference was not statistically significant.
While disappointed, the analysts believe the low expectations should limit the stock's downside.
Analysts believe the focus has sharpened on pimavanserin and Alzheimer's disease psychosis (ADP) refile proceedings, which is the major value driver for the stock. The target action date is August 4.
RBC has reiterated its Outperform rating and the price target of $34.
Mizuho Securities says expectations for the Phase 2 acute pain trial were limited, and a trial for ACP-044 in chronic pain is ongoing.
It still expects modest weakness in ACAD shares on this news.
"In addition, the trial failure will further heighten anticipation of the upcoming FDA Advisory Committee Meeting to discuss Nuplazid in ADP, as investors look for additional growth drivers for the ACAD story," analysts write.
"We remain cautious on Nuplazid getting approved in ADP without a new clinical trial," added the analysts.
Mizuho removed ACP-044 from its company model, lowering the price target to $27 from $28, Neutral rating unchanged.
Price Action: ACAD shares are down 3.06% at $21.73 during the market session on the last check Tuesday.

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