Why ACADIA Pharmaceuticals (ACAD) Gapped Higher


 
 
02:02 09/23/2018

After an incredible run on its Parkinson’s disease Psychosis (PDP) drug, ACADIA Pharmaceuticals [NASDAQ:ACAD) plummeted in recent months.

All thanks to a CNN report that highlighted a growing number of patient deaths and adverse effects, potentially related to the ACAD drug, Nuplazid. In fact, according to the report, more than 1,000 patients continued to experience hallucinations. More than 700 had died.

And, according to the report, medical experts said the drug was “approved too quickly.”

Understandably, that didn’t sit well with investors.

However, it appears the U.S. FDA just quieted those very concerns. In fact, the regulator said it couldn’t identify “any new or unexpected safety findings with Nuplazid, or findings that are inconsistent with the established safety profile currently described in the drug label.”



As found on the US FDA site:

“The U.S. Food and Drug Administration (FDA) has completed a review of all postmarketing reports of deaths and serious adverse events (SAEs) reported with the use of Nuplazid (pimavanserin). Based on an analysis of all available data, FDA did not identify any new or unexpected safety findings with Nuplazid, or findings that are inconsistent with the established safety profile currently described in the drug label. After a thorough review, FDA’s conclusion remains unchanged that the drug’s benefits outweigh its risks for patients with hallucinations and delusions of Parkinson’s disease psychosis.”

As a result of the news, ACAD shot from a low of $12.50 to $20.10.

It has yet to be seen if ACAD will be able to return to business as usual after the CNN report.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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