Tuesday, JMP Securities adjusted its shares price target for Acadia Pharmaceuticals (NASDAQ:ACAD), reducing it to $39.00 from the previous $44.00. The firm maintained its Market Outperform rating on the company's shares. This revision follows the announcement that Acadia's Phase 3 ADVANCE-2 trial for Pimavanserin did not meet its primary endpoint.
On Monday, Acadia Pharmaceuticals disclosed that their clinical trial for Pimavanserin, aimed at treating the negative symptoms of schizophrenia, fell short of expectations. Despite this setback, the company has chosen not to pursue further trials with Pimavanserin. Instead, Acadia is shifting its attention towards its commercial products and the development of its broader pipeline, including next-generation Pimavanserin.
JMP Securities has reiterated its Market Outperform rating for Acadia, indicating continued confidence in the company's potential despite the recent clinical trial results. The firm's decision to lower the price target is based on a risk-adjusted, discounted cash flow (DCF) analysis of the company's shares.
As Acadia Pharmaceuticals moves forward, the focus is expected to turn to ACP-204, a next-generation candidate, and other projects in the pipeline. The company's strategic pivot is aimed at leveraging its existing commercial franchises and advancing the development of its emerging pipeline.
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