Why Are Acadia Pharmaceuticals Shares Trading Higher Today?

Acadia Pharmaceuticals Inc ACAD shares are trading higher after the company expanded its current licensing agreement for trofinetide with Neuren Pharmaceuticals to acquire ex-North American rights to the drug. 

In April of this year, Acadia launched trofinetide in the U.S. as Daybue, the first and only drug approved for the Rett syndrome.

In addition to expanding access to trofinetide outside of North America, the agreement gives Acadia exclusive worldwide rights to NNZ-2591 in both Rett syndrome and Fragile X syndrome. 

Also Read: Strategic Fit of ACP-101 Promises Future Revenue Growth for Acadia Pharmaceuticals: Analyst

Acadia intends to submit a New Drug Submission for trofinetide in Canada in the next 18 months, with plans for Europe, Asia, and other regions to be announced later.

Neuren will receive an upfront payment of $100 million and is eligible to receive additional potential downstream milestone and royalty payments earned separately for trofinetide and NNZ-2591.

Outside of North America, Neuren is eligible to receive additional payments for trofinetide upon achieving specified revenue milestones.

For Q2, the company expects interim Daybue sales of $21-$23 million and Nuplazid sales of $140-$144 million.

For Q3, Daybue sales guidance stands at $45-$55 million.

For FY23, the company tightened Nuplazid sales guidance to $530-$545 million versus earlier guidance of $520-$550 million.

Price Action: ACAD shares are up 15.10% at $29.69 on the last check Friday.