Acadia Pharmaceuticals (ACAD) presented at the Morgan Stanley Global Healthcare Conference on Monday at 9:25 a.m. Here are a few takeaways from that conference.
A) CEO Uli Hacksell stated that they expect "very significant" pricing power of Pimavanserin once approved by the FDA, due to past new drug launch comparisons, safety, and the unmet need with victims with PDP.
B) ACAD believes Pima can be used for all kinds of dementia outside of Parkinson's and Alzheimer's disease.
C) The FDA and ACAD agree that there are no safety concerns with Pima regardless if the indication is for Parkinson's or Alzheimer's.
Overall, there were good questions asked from the Morgan Stanley analyst, and equally strong replies from ACAD management.
The priority list for ACAD was pointed out as being:
1. To continue to gather all relevant information to submit an NDA (new drug application) to the FDA.
2. To run a phase II trial for patients with Alzheimer's disease.
3. Run a phase II Schizophrenia trial using Pima coupled with Risperdal.
The stock made a new all-time closing high on the day of the conference, which was Monday. Below is a weekly chart.
A) CEO Uli Hacksell stated that they expect "very significant" pricing power of Pimavanserin once approved by the FDA, due to past new drug launch comparisons, safety, and the unmet need with victims with PDP.
B) ACAD believes Pima can be used for all kinds of dementia outside of Parkinson's and Alzheimer's disease.
C) The FDA and ACAD agree that there are no safety concerns with Pima regardless if the indication is for Parkinson's or Alzheimer's.
Overall, there were good questions asked from the Morgan Stanley analyst, and equally strong replies from ACAD management.
The priority list for ACAD was pointed out as being:
1. To continue to gather all relevant information to submit an NDA (new drug application) to the FDA.
2. To run a phase II trial for patients with Alzheimer's disease.
3. Run a phase II Schizophrenia trial using Pima coupled with Risperdal.
The stock made a new all-time closing high on the day of the conference, which was Monday. Below is a weekly chart.
Bottom Line: ACAD is moving along nicely with their lead drug Pimavanserin and intends on submitting and NDA by the end of 2014. They also plan on starting a phase II Alzheimer's disease trial by the end of 2013.
From my previous post Future Value of ACAD, I ran some revenue estimates and came to a near term price for ACAD of around $29.00. Judging from Monday's stock making a new high, I think investors are starting to see the big picture of what Pimavanserin can potentially be......a new and safe blockbuster drug to treat Parkinson's, Alzheimer's and other dementia related disorders. Thank you for reading.
Disclosure: We hold ACAD equity and options, CBST, ONTX, and January puts on the SPY.
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