Acadia Pharmaceuticals secures patent protection for Parkinson’s drug

Published 16/05/2025, 18:50
Acadia Pharmaceuticals secures patent protection for Parkinson’s drug

SAN DIEGO - Acadia Pharmaceuticals Inc. (NASDAQ:ACAD), a $3.7 billion market cap company with robust financials and a "GREAT" health score according to InvestingPro, received a favorable ruling from the U.S. District Court for the District of Delaware in its patent litigation concerning NUPLAZID (pimavanserin), the company’s Parkinson’s Disease Psychosis treatment. The court’s decision confirmed the infringement and validity of Acadia’s ’721 formulation patent, extending its exclusivity for the 34 mg capsule formulation of NUPLAZID until 2038.

Acadia’s CEO, Catherine Owen Adams, expressed satisfaction with the court’s ruling, emphasizing the company’s commitment to protecting its therapeutic innovations for diseases with significant unmet medical needs. The company’s strong financial position, with a current ratio of 2.88 and more cash than debt on its balance sheet, supports its continued innovation efforts.

NUPLAZID is notably the only FDA-approved medication specifically designed to treat hallucinations and delusions associated with Parkinson’s disease psychosis. Acadia is recognized for its focus on neuroscience breakthroughs and has a history of bringing essential treatments to market, including the first and only approved drug in the U.S. and Canada for Rett syndrome.

The company’s pipeline includes clinical-stage development for conditions such as Prader-Willi syndrome and Alzheimer’s disease psychosis, as well as other neuroscience and neuro-rare disease targets.

The court’s decision is a pivotal moment for Acadia, ensuring continued patent protection for NUPLAZID, which is central to the company’s portfolio. This outcome provides Acadia with a fortified position against generic competition and underscores the importance of intellectual property in the pharmaceutical industry.

The information regarding the court ruling and its implications for Acadia Pharmaceuticals is based on a press release statement from the company.

In other recent news, Acadia Pharmaceuticals reported a strong start to 2025 with its first-quarter earnings surpassing expectations. The company achieved earnings per share of $0.11, outperforming the anticipated $0.02 loss, and reported revenue of $244.3 million, which exceeded the expected $239.55 million. This marks Acadia’s sixth consecutive profitable quarter and includes notable sales growth for its products NUPLAZID and DAYBUE. NUPLAZID sales alone reached $159.7 million, reflecting a 23% year-over-year increase. Additionally, the United States District Court ruled in favor of Acadia in a patent infringement case against Aurobindo Pharma, potentially extending the patent protection for its drug Nuplazid into the 2030s.

BMO Capital Markets maintained an Outperform rating on Acadia with a price target of $24, highlighting the court ruling as a significant win. JMP analysts also reiterated a Market Outperform rating with a higher price target of $37, citing Acadia’s strong quarterly performance and positive developments in its clinical pipeline. In contrast, Stifel analysts maintained a Hold rating with a price target of $18, acknowledging the company’s strong quarterly results but noting potential challenges in achieving financial targets. The market’s reaction to the court ruling and Acadia’s robust financial performance reflects investor confidence in the company’s ability to maintain its competitive edge. These developments are being closely monitored by investors and industry observers as Acadia continues to advance its strategic priorities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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