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Shares surge 16% on Acadia Pharmaceuticals rights deal and bullish outlook.Here’s what you can expect

An astounding rise over two days, Acadia Pharmaceuticals (United States: ACAD) Shares surged 16% after the company announced it had acquired expanded commercial rights to trophinetide, a groundbreaking Rett syndrome treatment. This growth was further fueled by an upward revision to the forecast for the fiscal year, which paints a promising future for the company.

Management’s pre-announcement of Daybue sales in 2023 shocked the market, with sales expected to be between $21 million and $23 million, beating the conservative consensus of $2.3 million. Furthermore, the 2023 guidance forecasts a staggering $45-55 million, compared to the conservative consensus forecast of $7.3 million.

These developments combine with Acadia’s acquisition of former North American rights to trophinetide and global rights to NNZ-2591 for Rett Syndrome and Fragile X Syndrome from Neuren Pharmaceuticals. pushed up stock prices.

Rett syndrome, a rare genetic disorder that primarily affects women, sees a silver lining in trophinetide. Marketed under the brand name Daybue, the drug has shown promising early results. More than 90% of his eligible patients have converted from clinical trials, with sales fully distributed across large facilities, community-based centers, and centers of excellence.

increase the need for sales

Management believes the above-consensus sales are due to increased adoption driven by the disease’s educational and medical needs. They reported a promising mix of patient demographics, including young female patients representing the primary beneficiaries.

Acquisition of additional rights to trophinetide by Acadia, together with acquisition of global rights to NNZ-2591, represents a strategic expansion. The move presents strong growth opportunities for the company and adds another promising drug to its portfolio. Terms of the deal include an upfront payment of $100 million, potential milestone payments and future royalties.

With Daybue’s impressive initial sales and encouraging guidance in the next quarter, Acadia is making a significant impact in the rare neurological space. The company is currently preparing to work with regulatory authorities, including in Europe, to secure approval for trophinetide. Meanwhile, Nulen has completed a Phase 1 trial of NNZ-2591, paving the way for a Phase 2.

The surge in Acadia’s stock reflects investor optimism about the company’s trajectory. The company has strengthened its dominance in the Rett syndrome and fragile X syndrome markets with Dayview and NNZ-2591 and is poised to change the lives of countless patients around the world.

Broker’s thoughts

TD Cowen Analyst Ritu Balal said he continues to be blown away by Dayview’s early sales and expects the product to continue to exceed expectations. Barral said the updated 12-month price target, which was raised from $28 to $35 a share, likely has more upside.

The analyst believes Dayview still has potential for success in other markets outside the U.S. and maintains an “outperform” view on the stock.

Fintel’s Consensus valuation is $25.27 It turns out that before the announcement, the market thought the stock was trading near fair value. We anticipate a gradual increase in consensus targets with updated guidance in the coming weeks.

Here is the distribution of recommendations from all brokers on the street.

One area of ​​concern is:

The news gave the stock a positive move, but Fintel upon ACAD insider trading data Five net insiders have revealed that they have sold shares in the past 90 days. Analysis includes any unplanned open market insider sales that have taken place.

These insiders have sold shares worth 0.7% of the issued share capital, with the bulk of the sales occurring in June and July. These insiders are likely to have sold stocks following a rebound in the first half of 2023 after losing significant value in recent years.

The chart below shows planned and unplanned transactions by equity insiders. Other stocks with high insider sentiment are: Fintel’s Quant leaderboard.

An optimistic view of Acadia stock has returned more than 80% since the beginning of the year. But the journey isn’t over yet. As the company navigates the complexities of commercial launch, pricing strategy and regulatory hurdles, the world is optimistic about a future where there are no effective treatments for Rett Syndrome or Fragile X Syndrome.

This story was originally Fintel.

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words

An astounding rise over two days, Acadia Pharmaceuticals (United States: ACAD) Shares surged 16% after the company announced it had acquired expanded commercial rights to trophinetide, a groundbreaking Rett syndrome treatment. This growth was further fueled by an upward revision to the forecast for the fiscal year, which paints a promising future for the company. Management’s pre-announcement of Daybue sales in 2023 shocked the market, with sales expected to be between $21 million and $23 million, beating the conservative consensus of $2.3 million. Furthermore, the 2023 guidance forecasts a staggering $45-55 million, compared to the conservative consensus forecast of $7.3 million.

These developments combine with Acadia’s acquisition of former North American rights to trophinetide and global rights to NNZ-2591 for Rett Syndrome and Fragile X Syndrome from Neuren Pharmaceuticals. pushed up stock prices. Rett syndrome, a rare genetic disorder that primarily affects women, sees a silver lining in trophinetide. Marketed under the brand name Daybue, the drug has shown promising early results. More than 90% of his eligible patients have converted from clinical trials, with sales fully distributed across large facilities, community-based centers, and centers of excellence. increase the need for sales Management believes the above-consensus sales are due to increased adoption driven by the disease’s educational and medical needs. They reported a promising mix of patient demographics, including young female patients representing the primary beneficiaries. Acquisition of additional rights to trophinetide by Acadia, together with acquisition of global rights to NNZ-2591, represents a strategic expansion. The move presents strong growth opportunities for the company and adds another promising drug to its portfolio. Terms of the deal include an upfront payment of $100 million, potential milestone payments and future royalties. With Daybue’s impressive initial sales and encouraging guidance in the next quarter, Acadia is making a significant impact in the rare neurological space. The company is currently preparing to work with regulatory authorities, including in Europe, to secure approval for trophinetide. Meanwhile, Nulen has completed a Phase 1 trial of NNZ-2591, paving the way for a Phase 2.

The surge in Acadia’s stock reflects investor optimism about the company’s trajectory. The company has strengthened its dominance in the Rett syndrome and fragile X syndrome markets with Dayview and NNZ-2591 and is poised to change the lives of countless patients around the world. Broker’s thoughts TD Cowen Analyst Ritu Balal said he continues to be blown away by Dayview’s early sales and expects the product to continue to exceed expectations. Barral said the updated 12-month price target, which was raised from $28 to $35 a share, likely has more upside. The analyst believes Dayview still has potential for success in other markets outside the U.S. and maintains an “outperform” view on the stock. Fintel’s Consensus valuation is $25.27 It turns out that before the announcement, the market thought the stock was trading near fair value. We anticipate a gradual increase in consensus targets with updated guidance in the coming weeks. Here is the distribution of recommendations from all brokers on the street.

One area of ​​concern is: The news gave the stock a positive move, but Fintel upon ACAD insider trading data Five net insiders have revealed that they have sold shares in the past 90 days. Analysis includes any unplanned open market insider sales that have taken place. These insiders have sold shares worth 0.7% of the issued share capital, with the bulk of the sales occurring in June and July. These insiders are likely to have sold stocks following a rebound in the first half of 2023 after losing significant value in recent years. The chart below shows planned and unplanned transactions by equity insiders. Other stocks with high insider sentiment are: Fintel’s Quant leaderboard. An optimistic view of Acadia stock has returned more than 80% since the beginning of the year. But the journey isn’t over yet. As the company navigates the complexities of commercial launch, pricing strategy and regulatory hurdles, the world is optimistic about a future where there are no effective treatments for Rett Syndrome or Fragile X Syndrome.
This story was originally Fintel.

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/acadia-pharmaceuticals-rights-deal-and-bullish-outlook-sends-shares-surging-16.-heres-what Shares surge 16% on Acadia Pharmaceuticals rights deal and bullish outlook.Here’s what you can expect

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