Nucor earnings beat by $0.08, revenue fell short of estimates
SAN DIEGO - Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) has successfully defended its patent rights for the drug NUPLAZID (pimavanserin), with the U.S. Court of Appeals for the Federal Circuit affirming a lower court’s decision that validates the ’740 composition of matter patent. This ruling, stemming from litigation against MSN Laboratories Pvt. Ltd. and MSN Pharmaceuticals, Inc., secures patent protection for NUPLAZID into 2030. The company, which maintains a strong financial position with more cash than debt and a current ratio of 2.88, has demonstrated robust revenue growth of 22.4% over the last twelve months. According to InvestingPro analysis, Acadia’s overall financial health score is rated as "GREAT."
The Appeals Court’s decision is based on legal precedent from a case involving Allergan USA, Inc., which established that an earlier-filed and issued claim cannot be invalidated by a later-filed claim with the same priority date. This outcome builds upon a previous ruling in favor of Acadia’s ’721 formulation patent for NUPLAZID, which extends protection into 2038. The market has responded positively to Acadia’s strategic moves, with the stock delivering a remarkable 47.6% return over the past year. InvestingPro data shows the stock trading near its 52-week high, suggesting strong investor confidence in the company’s patent portfolio and market position.
Catherine Owen Adams, CEO of Acadia, expressed satisfaction with the court’s affirmation, emphasizing the importance of intellectual property in supporting the company’s efforts to address critical medical needs.
The court’s decision follows a favorable outcome for Acadia in its formulation patent litigation involving Aurobindo Pharma Limited and other ANDA filers. These legal victories reinforce Acadia’s patent estate around NUPLAZID, which is the only FDA-approved medication for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.
Acadia Pharmaceuticals, known for its work in neuroscience, has been a pioneer in developing treatments for conditions like Parkinson’s disease psychosis and Rett syndrome. The company continues to focus on advancing treatments for Prader-Willi syndrome, Alzheimer’s disease psychosis, and other neuroscience and neuro-rare diseases.
The information in this article is based on a press release statement from Acadia Pharmaceuticals Inc.
In other recent news, Acadia Pharmaceuticals has seen significant developments impacting its financial outlook and strategic direction. Deutsche Bank upgraded Acadia’s stock from Hold to Buy, raising the price target to $35 due to a favorable patent litigation outcome for Nuplazid, which now has patent protection until 2038. This upgrade reflects Deutsche Bank’s increased confidence in Nuplazid’s revenue projections and the sustainability of the Daybue franchise. JPMorgan also raised its price target for Acadia to $30, maintaining an Overweight rating, following a similar court ruling that extended Nuplazid’s patent protection. BofA Securities adjusted its price target to $23, emphasizing the importance of the recent court decision in securing long-term revenue for Nuplazid.
Additionally, Acadia has appointed Allyson McMillan-Youngblood as the new Senior Vice President of its Rare Disease Franchise, aiming to bolster the growth of DAYBUE and prepare for future product launches. Acadia’s recent annual meeting saw the election of three Class III directors and the approval of executive compensation and accounting firm appointments, indicating shareholder support for its current leadership. The company is also anticipating Phase 3 clinical trial data for its Prader-Willi syndrome treatment, ACP-101, with potential peak sales estimated at $1.1 billion if successful. These developments underscore Acadia’s strategic efforts to strengthen its market position in the neuroscience and rare disease sectors.
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