Thursday, April 11, 2013

ACAD Up +50% Premarket

We originally bought ACAD around $6.00 per share here ACAD Pharmaceuticals - ACAD.  ACAD is up pre-market 50% to around $12.00 on news that it will seek FDA approval for Pimavanserin a Parkinsons disease psychosis drug.  After meeting with the Food and Drug Administration and based on data from a successful phase III study already completed the company will no longer conduct a confirmatory phase III study that was planned to start this month.  The company is currently targeting NDA submission (new drug application) by the end of 2014.
Bottom Line:  The phase III study that was released last November was statistically significant.  Having the opportunity to skip a second phase III study will eliminate approximately a year or more from potential approval to drug to market.  The company is a strong candidate for acquisition by large pharma as the patent  coverage for Pimavanserin is 2028.  Thank you for reading.

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