Acadia Pharmaceuticals (ACAD 25.86 +2.06 8.63%) made it. The company’s New Drug Application (NDA) for Nuplazid was overwhelmingly backed by the advisory panel for approval. 12 members in the panel voted in favor of an approval while just 2 voted against it.
Trading in ACAD shares was halted on Tuesday as the Ad Comm met to review the NDA. But the stock surged almost 25% once trading began after the decision was released. Nuplazid is just a step away from finally reaching commercialization. Analysts believe the drug could achieve blockbuster status.
I have been bullish on ACAD. In fact, I included the stock in my Top 3 Biotech Picks for 2016 along with RLYP and PGNX. ACAD is also in my Conviction Buy List. My price target on the stock is $60. However, investors should keep taking profit on the way. Remember that ACAD does not have commercial experience so a potential launch does not necessarily translate to high sales immediately.
