Acadia stock maintains outperform rating at RBC on pipeline potential

Published 26/06/2025, 14:22
Acadia stock maintains outperform rating at RBC on pipeline potential

Investing.com - RBC Capital maintained its outperform rating and $38.00 price target on Acadia Pharmaceuticals (NASDAQ:ACAD) following the company’s research and development day. According to InvestingPro data, the company has demonstrated strong financial health with a 22.42% revenue growth over the last twelve months.

The investment firm highlighted Acadia’s expanding neuropsychiatric pipeline programs, which may receive increased attention as recent intellectual property developments have reduced concerns about a potential medium-term commercial cliff for the company. The company’s solid financial position is reflected in its "GREAT" overall health score on InvestingPro, with notably strong profitability metrics.

RBC expressed particular enthusiasm for ACP-204, described as a next-generation version of Nuplazid targeting more expansive neuropsychiatric disorders, with an estimated $940 million market potential and a 35% probability of success.

The firm noted more caution regarding ACP-101 for Prader-Willi syndrome, which has a 25% probability of success according to their analysis, citing mixed prior data despite this being the next expected clinical readout from the company.

RBC concluded that with over $1 billion in sustainable annual revenue from existing products and a market capitalization below $4 billion, Acadia’s stock appears fundamentally undervalued, with any contributions from pipeline programs representing potential upside.

In other recent news, Acadia Pharmaceuticals has announced plans to initiate seven Phase 2 or Phase 3 clinical studies between 2025 and 2026, with five late-stage study readouts expected through 2027. The company’s commercial portfolio is projected to generate over $1 billion in net sales this year, driven by its approved products, Nuplazid and Daybue. Analysts from Canaccord Genuity reiterated a Buy rating with a $32.00 price target, citing the undervaluation of Acadia’s pipeline, which holds a potential peak sales of $12 billion. BMO Capital maintained its Outperform rating and emphasized the growth potential of Acadia’s development portfolio, particularly ACP-211 for major depressive disorder. Meanwhile, Goldman Sachs reiterated its Sell rating with a $15.00 price target, though it noted optimism for ACP-204 in Alzheimer’s disease psychosis. Citizens JMP also reaffirmed a Market Outperform rating, highlighting Acadia’s broad pipeline and expected revenue growth from Daybue and Nuplazid. The company anticipates key trial results, such as the Phase 3 trial for ACP-101 in Prader-Willi syndrome, by early fourth quarter 2025.

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