©Reuters.Acadia Pharma (ACAD) suspends pimavanserin trial after failure
Acadia Pharma (ACAD) stock fell sharply on Tuesday after the company reported after Monday's close that its Phase 3 ADVANCE-2 study did not meet its primary endpoint.
The company's stock price fell more than 15% to $20.48 per share on the news.
The phase 3 ADVANCE-2 trial was evaluating pimavanserin in the treatment of negative symptoms in schizophrenia. ACAD said pimavanserin did not show statistically significant improvement compared to placebo.
“We are disappointed that this trial did not meet its primary endpoint, given the significant unmet need in patients with negative symptoms of schizophrenia,” said Steve Davis, CEO of Acadia. “I think so,” he said.
Davis said the company will continue to analyze the data with its scientific advisors, but does not intend to conduct further clinical trials with pimavanserin.
Following this news, Mizuho analysts lowered Acadia's rating from “buy” to “neutral” and lowered their price target from $39 to $25 per share.
Analysts at the company said, “Given the failure of the ADVANCE-2 trial, we are withdrawing our sales forecast for Nuplazid in negative symptoms of schizophrenia (NSS).'' “Our new $25 PT includes the value of his Nuplazid in Parkinson's disease psychosis (PDP), the value of Daybue up to $1 billion, and his Nuplazid IP for PDP extended to 2038. It has built-in possibilities.”
Mizuho also said that there will be no major short-term catalyst for stock prices in 2024, and that the next big catalyst could arrive in late 2025 or early 2026.
