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On Thursday, TD Cowen maintained a positive stance on Acadia Pharmaceuticals (NASDAQ:ACAD), reiterating a Buy rating and a price target of $35.00. The firm’s analysis followed Acadia’s fourth-quarter earnings, which surpassed the consensus and TD Cowen’s own forecasts. Acadia reported net sales of $96.7 million for their DAYBUE product in the fourth quarter, marking a 6% increase from the previous quarter and exceeding the anticipated figures of $93.1 million and $95.6 million, respectively. The company’s strong performance is reflected in its impressive 47% year-over-year revenue growth and current market capitalization of $3.3 billion. According to InvestingPro analysis, Acadia currently appears fairly valued based on its Fair Value assessment.
The strong performance was attributed to heightened demand for DAYBUE. Looking ahead, Acadia has provided optimistic revenue guidance for FY25, projecting sales for DAYBUE to be between $380 million and $405 million. This forecast is based on an expected 10% rise in patient referrals in 2025, bolstered by the company’s strategy to expand its sales force to target non-centers of excellence (COEs). InvestingPro data reveals that analysts expect continued profitability, with the company maintaining a healthy gross profit margin of 63% and strong return on assets of 16%.
In addition to the robust sales and forward guidance, Acadia is advancing its clinical pipeline. The company is preparing to initiate a Phase 2 trial for ’204 in Lewy Body Dementia (LBD) in the third quarter of 2025. Furthermore, Acadia anticipates releasing topline results from a Phase 3 trial for ’101 in Prader-Willi Syndrome (PWS) and Phase 2 data for ’204 in Alzheimer’s Disease Psychosis (ADP) in the first half of 2026 and mid-2026, respectively. Supporting these developments, InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 2.29 and minimal debt relative to equity.
These clinical developments are part of Acadia’s long-term growth strategy, which includes leveraging its expanded DAYBUE salesforce to drive future growth. The company’s focus on expanding treatment options for neurological and central nervous system disorders continues to be a core aspect of its business model.
Acadia’s financial and clinical progress as reported in the fourth quarter and the optimistic outlook for the coming years reflect the company’s ongoing efforts to enhance its market position and deliver value to both patients and shareholders.
In other recent news, Acadia Pharmaceuticals reported a 12% year-over-year increase in revenue for the fourth quarter of 2024, reaching $259.6 million. The company’s total revenue for the year was $957.8 million, marking a 32% increase from the previous year. Acadia provided guidance for 2025, forecasting revenue between $1.03 billion and $1.095 billion, with significant contributions expected from its key products, DAYBÜ and NUPLAZID. DAYBÜ’s sales surged by 97% in 2024, and Acadia anticipates continued growth in 2025, projecting sales between $380 million and $450 million. NUPLAZID also performed well, with 2024 sales increasing by 11% to $609.4 million, and the company expects sales to range from $650 million to $690 million in 2025. Citizens JMP adjusted its price target for Acadia, reducing it to $37 from $39, while maintaining a Market Outperform rating, citing moderated growth expectations for the mid-term. The firm noted the potential for long-term value in Acadia’s pipeline programs and the company’s strong cash flow position, which supports internal investments and potential acquisitions.
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