Moody’s downgrades Senegal to Caa1 amid rising debt concerns
Investing.com - BMO Capital maintained its Outperform rating and $28.00 price target on Acadia Pharmaceuticals (NASDAQ:ACAD) following a clinical trial failure. The company, which maintains a healthy balance sheet with a current ratio of 2.91 and generated over $1 billion in revenue over the last twelve months, has seen its stock decline by 14% in the past week.
The company’s Phase 3 COMPASS trial of ACP-101 failed to show statistically significant benefits in patients with Prader-Willi Syndrome compared to placebo for the primary endpoint, which measured change in HQ-CT from baseline.
No separation from placebo was observed in any key secondary endpoints, prompting Acadia’s management to discontinue development of ACP-101 for Prader-Willi Syndrome.
BMO Capital characterized the trial failure as "a meaningful step back in Acadia’s R&D development plans" in its research note.
The investment firm noted that the lack of previous dose response had likely tempered expectations for success in the trial.
In other recent news, Acadia Pharmaceuticals announced that its Phase 3 COMPASS-PWS study for the drug candidate ACP-101 did not meet its primary endpoint in treating Prader-Willi syndrome. This development has led to several analyst firms revising their outlooks. TD Cowen lowered its price target for Acadia Pharmaceuticals from $39.00 to $35.00 while maintaining a Buy rating. Similarly, Oppenheimer reduced its price target from $22.00 to $21.00, keeping a Perform rating. BofA Securities maintained its Neutral rating and a $27.00 price target despite the trial results. Meanwhile, Baird reiterated its Outperform rating with a $31.00 price target, showing continued confidence in the company’s prospects. The missed endpoint in the clinical trial has been a significant focus for analysts and investors. These recent developments have captured considerable attention in the investment community.
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