Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, BofA Securities analysts increased the price target for Acadia Pharmaceuticals stock (NASDAQ: ACAD) to $23 from $18, while maintaining a Neutral rating. The company, which has shown impressive momentum with a 42% return over the past year, received favorable news following a Delaware District Court ruling regarding the patent litigation for its Nuplazid 34mg formulation. This court decision secures patent protection for Nuplazid 34mg capsules until 2038. According to InvestingPro data, the company maintains a strong financial health score of 3.72, rated as "GREAT."
Acadia Pharmaceuticals, a commercial-stage company with a market capitalization of $3.6 billion, has two approved products: Nuplazid, used for treating Parkinson’s disease psychosis, and Daybue, intended for Rett syndrome, a rare neurodevelopmental disorder. The recent court ruling is expected to remove a long-term revenue concern for the Nuplazid franchise, which has helped drive the company’s impressive 22.4% revenue growth over the last twelve months.
The analysts noted that further growth for Acadia Pharmaceuticals will depend on the reacceleration of the Daybue launch. Although the first quarter showed promising results, the launch has yet to be fully de-risked. The company recently expanded its salesforce by 30% and expects to see benefits from this expansion starting in the second half of the year.
BofA Securities reiterated its Neutral rating for Acadia Pharmaceuticals, indicating that while the company has potential, uncertainties remain regarding the future growth trajectory of its products.
In other recent news, Acadia Pharmaceuticals has reported several key developments. Deutsche Bank (ETR:DBKGn) upgraded Acadia’s stock rating from Hold to Buy, increasing the price target to $35, following a favorable patent litigation outcome for their drug Nuplazid, which now has patent protection until 2038. This outcome has provided a more robust valuation basis for the company. Additionally, Acadia has secured a new lease for office space in Princeton, New Jersey, intended for executive offices and research and development, starting January 2026. The U.S. District Court for the District of Delaware ruled in favor of Acadia in a patent case, upholding the validity of the ’721 formulation patent for NUPLAZID® against challenges from generic manufacturers.
Acadia also announced the appointment of Allyson McMillan-Youngblood as the new Senior Vice President of its Rare Disease Franchise, focusing on the growth of DAYBUE® and preparing for upcoming product launches. RBC Capital Markets maintained an Outperform rating on Acadia, with a price target of $26, expressing optimism about the accelerated timeline for the Phase III ACP-101 program in Prader-Willi Syndrome. At the company’s 2025 Annual Meeting of Stockholders, three Class III directors were elected, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These developments reflect Acadia’s strategic efforts in strengthening its market position and advancing its pipeline.
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