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SAN DIEGO, CA – Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) reported a legal victory today, as the U.S. Court of Appeals for the Federal Circuit upheld a previous court decision confirming the validity of the patent for its drug, NUPLAZID (pimavanserin). The appellate court’s ruling supports the company’s claims against MSN Laboratories Private Ltd. and its affiliate MSN Pharmaceuticals, Inc., safeguarding Acadia’s intellectual property rights for the ’740 composition of matter patent. The ruling comes as Acadia demonstrates strong financial performance, with nearly $1 billion in revenue and a healthy 60% gross margin in the last twelve months. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, with 10+ additional insights available to subscribers.
The dispute centered on Acadia’s NUPLAZID, a treatment for Parkinson’s disease psychosis, which had its patent challenged by the defendants. The affirmation by the Court follows a favorable decision from the U.S. District Court for the District of Delaware, as referenced in Acadia’s quarterly report filed on May 8, 2025. This outcome is a critical win for Acadia, as it maintains the exclusivity of its flagship product in the market.
The company’s statement in the SEC filing also contained forward-looking statements regarding the impact of the Court’s ruling on its business operations and future defense of its intellectual property. Acadia highlighted the various risks and uncertainties that could affect actual results, including geopolitical and macroeconomic developments, the ability to protect intellectual property, and compliance with laws and regulations.
The news from Acadia Pharmaceuticals, a company incorporated in Delaware and based in San Diego, California, is based on a press release statement. It comes at a time when pharmaceutical companies are increasingly vigilant in protecting their patents, which are essential to their ability to recoup investments made in drug development. The patent win allows Acadia to continue to capitalize on its research and development efforts without the immediate threat of generic competition for NUPLAZID.
In other recent news, Acadia Pharmaceuticals has secured extended patent protection for its drug NUPLAZID, with the U.S. Court of Appeals affirming the validity of the ’740 composition of matter patent, ensuring coverage through 2030. This decision adds to a previous ruling that supports the ’721 formulation patent, extending protection until 2038. Following these legal victories, JPMorgan analysts increased their price target for Acadia to $30, citing confidence in the company’s patent defenses. BofA Securities also raised its price target to $23, maintaining a Neutral rating, and noted that the recent court ruling alleviates long-term revenue concerns for NUPLAZID.
Additionally, Acadia Pharmaceuticals held its Annual Meeting of Stockholders, where three Class III directors were elected, and executive compensation was approved. The company also appointed Allyson McMillan-Youngblood as the new Senior Vice President of its Rare Disease Franchise, aiming to bolster the growth of its DAYBUE brand. McMillan-Youngblood brings extensive experience from her previous roles at Pfizer (NYSE:PFE) and Bristol Myers (NYSE:BMY) Squibb. Acadia’s strategic moves, including this key hire, emphasize its focus on expanding its pipeline of therapies for rare diseases.
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