Acadia Pharmaceuticals, Inc.

(Public, NASDAQ:ACAD)

A San Diego drug maker is hoping an infusion of research capital will allow it to continue its work in searching for Parkinson’s disease treatments.

Acadia Pharmaceuticals (NASDAQ:ACAD)‎, which hopes its drug, pimavanserin, will treat Parkinson’s-related psychosis, recently received $30 million from Canadian pharmaceuticals company Biovail Corp. (NYSE: BVF) in a deal that could see additional investment should the drug succeed during current trials.

The pact covers the co-development and commercialization of pimavanserin, which is in a Phase III trial.

Acadia is utilizing innovative technology to fuel drug discovery and clinical development of novel treatments for central nervous system disorders.  It’s an intriguing trade opportunity because many analysts believe the stock continues to trade below cash value.

ACAD closed on Wednesday at $1.76 up 0.06 (3.53%) and has had a 52wk Range between $0.72 – $8.84 per share.

Jason Napodano, CFA- a Sr. Equity Research Analyst at Zacks who covers a wide range of pharmaceutical and biotechnology stocks thinks the future upside to Acadia can come from the successful development of pimavanserin in ADP or other neurological indications such as schizophrenia.

“Acadia has new relationship with the Michael J. Fox Foundation and Meiji Seika Kaisha, Ltd, as well as an existing collaboration with Allergan (NYSE: AGN)” writes Napodano. “We think pimavanserin works (the phase II data was strong), and the drug has $200 million potential in this indication.”

“We remind investors that besides the $30 million upfront payment, Acadia can earn $160 million in potential development and regulatory milestones for PDP and ADP, another $45 million in potential development and regulatory milestones for additional indications such as schizophrenia, and $160 million in potential sales related milestones.” But according to one Parkinson’s advocate, more should be done to find a cure. ‘While increased research money from pharmaceutical companies is great,’ says author and advocate Kay Mixson Jenkins, ‘we need more federal support and a greater push from the leaders at the state level to fund research.’ Ms. Jenkins is the author of Who Is Pee Dee? Explaining Parkinson’s Disease to a Child. ‘I hope that the book builds awareness of how Parkinson’s affects families all over the world,’ says Ms. Jenkins. ‘Maybe that exposure will create a push from the public for more funding.’ ‘I hope that companies like Acadia can deliver on their potential,’ says Ms. Jenkins.

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I have purchased this stock at $1.78 PPS.

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This article was written and published by M.E. Garza of BioMedReports.com

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