ACADIA Pharmaceuticals Shares Down 20% Following sNDA resubmission for ADP

Acadia Pharmaceuticals (NASDAQ:ACAD), a biopharmaceutical company focused on developing and commercializing innovative medicines for central nervous system disorders, is gearing up for its quarterly earnings release on August 6, 2025. Wall Street analysts have set expectations for earnings per share at $0.14 and project revenues to reach approximately $262 million.

Despite the anticipated earnings per share of $0.14, Zacks Investment Research suggests that ACAD might surpass these estimates. However, the company is expected to report a year-over-year decline in earnings, even with higher revenues for the quarter ending June 2025. This indicates that while sales are increasing, the company's profitability might be under pressure.

ACAD's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of 17.52, which reflects how the market values its earnings. Additionally, the price-to-sales ratio is 4.04, indicating the market value relative to its sales. The enterprise value to sales ratio is 3.88, showing the company's total value compared to its sales.

The enterprise value to operating cash flow ratio stands at 25.92, highlighting the company's valuation in relation to its cash flow from operations. This suggests that investors are paying a premium for ACAD's cash flow. The earnings yield of 5.71% offers insight into the return on investment for shareholders, while the debt-to-equity ratio of 0.073 indicates a low level of debt compared to equity.

ACAD's current ratio of 2.88 suggests a strong ability to cover short-term liabilities with short-term assets. This financial stability is crucial as the company navigates its earnings report. The future stock performance will largely depend on management's discussion of business conditions during the earnings call, as highlighted by Zacks Investment Research.

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical company focused on developing and commercializing innovative medicines to address unmet medical needs in central nervous system disorders. One of its key products is NUPLAZID, a treatment for Parkinson's Disease Psychosis. The company competes with other pharmaceutical firms like Aurobindo Pharma in the generic drug market.

On May 19, 2025, Andrew Fein from H.C. Wainwright set a price target of $32 for ACAD, suggesting a potential increase of approximately 45.62% from its then-current price of $21.98. This optimistic outlook aligns with recent positive developments for ACAD, including a significant 26.5% rise in its stock price to $22.26, as highlighted by a favorable court ruling.

The U.S. District Court for the District of Delaware upheld the validity of Acadia's '721 formulation patent for NUPLAZID, protecting it from generic competition until 2038. This decision blocks challenges from companies like Aurobindo Pharma, ensuring the 34 mg capsule formulation remains exclusive. Catherine Owen Adams, CEO of Acadia, expressed satisfaction with the ruling, emphasizing its importance for the company's future.

Following the court's decision, analysts have adjusted their price targets for ACADIA Pharmaceuticals, reflecting increased confidence in the company's market position. Despite a slight decrease of 0.90% in the stock price to $22.06, the ruling strengthens Acadia's commitment to advancing therapies for conditions with significant unmet needs.

ACAD's stock has fluctuated between $21.645 and $22.435 today, with a market capitalization of approximately $3.69 billion. Over the past year, the stock has seen a high of $25.23 and a low of $13.4. With a trading volume of 1,271,107 shares, ACAD remains a key player in the biopharmaceutical industry.

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) shares were trading around 20% lower Tuesday morning following the company’s announcement, according to which it will file an sNDA for pimavanserin for Alzheimer's Disease Psychosis (ADP) powered by new analyses of the HARMONY and -019 studies that look specifically at ADP.

While management stated the FDA has shown a "high level of engagement" in its meetings with the company, the analysts at Berenberg Bank stated that the concern remains that the agency will require additional studies, which will result in the dramatic increase in the capital required and time to launch.