Saturday, February 16, 2013

Acadia Pharmaceuticals ($6.09)

ACAD focuses on small molecule drugs that address unmet medical needs in neurological and related central nervous system disorders.  The lead drug Pimavanserin will be conducting another phase 3 for the treatment of Parkinson's Disease Psychosis (PDP).  The company announced positive results for a just completed phase 3 trial for Pimavanserin in November.  The FDA has requested a repeated phase 3 trail similar to the just completed phase 3.  The company plans to launch that second phase 3 by April.  They will also be launching a phase 2 trial for Alzheimer's Disease Psychosis (ADP) the second half of 2013.
The chart above is a 60 minute two month chart.  The stock has been consolidating over the past 13 days between the range of 5.80 - 6.40. The longer the consolidation lasts the greater the potential move once it breaks out.  

Bottom Line:  ACAD has to just duplicate the prior phase 3 trial they complete in November, if they do data should be good enough for FDA approval. They will be starting that trial by April.  The lead drug Pima will also be tested for (ADP) Alzheimer's Disease Psychosis in the second half of 2013. The long patent life to 2028 makes the company a good takeover target for large pharma sometime in the next two years.

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