SAN DIEGO - Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) has reached a definitive agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) for $150 million. The PRV, which was awarded to Acadia in March 2023 following the FDA approval of DAYBUE™ for Rett syndrome treatment, is poised to change hands upon the completion of the transaction.
The sale is subject to standard closing conditions, including the lapse of the waiting period mandated by the Hart-Scott Rodino Antitrust Improvements Act. Jefferies LLC provided financial advisory services to Acadia for this deal.
The proceeds from the sale are earmarked for investment into Acadia's commercial operations, research and development in central nervous system and rare diseases, and potential future business ventures. A portion of the net proceeds, as stipulated by the original licensing agreement from August 2018 with Neuren Pharmaceuticals Limited, will be paid to Neuren.
Acadia has a history of developing and commercializing drugs for neurological conditions, including the first FDA-approved medication for Parkinson’s disease psychosis hallucinations and delusions, as well as the only approved drug for Rett syndrome in the U.S. and Canada. The company's ongoing clinical trials are focused on Prader-Willi syndrome, Alzheimer’s disease psychosis, and other central nervous system disorders.
This strategic sale of the PRV underscores Acadia's commitment to advancing its pipeline and supporting its core operations. The transaction is based on a press release statement and is expected to close following regulatory clearances and the satisfaction of other customary conditions.
In other recent news, Acadia Pharmaceuticals has made significant strides with its Q2 2024 earnings reaching $242 million, primarily driven by its commercial products, NUPLAZID and DAYBUE. The company has also revised its total revenue guidance for 2024, now expecting between $930 million and $980 million. This comes after the approval of DAYBUE, the first authorized treatment for Rett syndrome in Canada, marking a major step forward for the Rett syndrome community.
In recent developments, Guggenheim has maintained a Buy rating on Acadia Pharmaceuticals after the company's announcement of the approval of DAYBUE in Canada. Meanwhile, Raymond (NS:RYMD) James has resumed coverage on the company with a Market Perform rating, suggesting a neutral outlook on the stock's future performance.
The company has also experienced leadership changes with Catherine Owen Adams being appointed as the new CEO. Analyst firms, including Needham and BMO Capital Markets, have provided their outlooks on the stock, with Needham reducing its price target to $28 while maintaining a Buy rating, and BMO Capital Markets maintaining an Outperform rating with a steady price target of $31.00.
InvestingPro Insights
Acadia Pharmaceuticals' decision to sell its Priority Review Voucher for $150 million aligns with its strong financial position and growth prospects. According to InvestingPro data, Acadia's revenue growth has been impressive, with a 61.65% increase in the last twelve months as of Q2 2024. This robust growth is further supported by a significant 46.44% quarterly revenue growth in Q2 2024.
InvestingPro Tips highlight that Acadia holds more cash than debt on its balance sheet, which is crucial for a biopharmaceutical company investing heavily in research and development. This solid financial footing is likely to be bolstered by the proceeds from the PRV sale, enabling Acadia to further invest in its commercial operations and R&D pipeline.
Another relevant InvestingPro Tip indicates that net income is expected to grow this year. This projection, coupled with the company's profitability over the last twelve months, suggests that Acadia is on a positive financial trajectory. The additional $150 million from the PRV sale could accelerate this growth trend.
For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for Acadia Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
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