10 Worst-Performing Growth Stocks in 2024

2. ACADIA Pharmaceuticals Inc (NASDAQ:ACAD)

Year to Date Gain as of October 28: -53.53%

Number of Hedge Fund Holders: 36

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biotechnology giant specializing in developing and commercializing medicines to treat unmet medical needs. While the stock is down by about 53% year to date, the underperformance comes on the company facing some headwinds with the launch of its treatment for Rett syndrome, DAYBUE.

The drug has faced significant challenges, with its sales dropping 11% sequentially in the second quarter to $85 million in sales from $90 million expected. The significant miss came on fewer than expected patients starting treatment. Consequently, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) has been forced to cut its full-year revenue estimates for the drug to between $340 million and $370 million, down by $40 million from the previous guidance.

Despite the significant miss with DAYBUE, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) delivered solid second-quarter results, with revenues increasing 46%  year over year to $242 million. The increase was fuelled mainly by NUPLAZID, the company’s lead candidate for Parkinson’s disease Psychosis. Sales of NUPLAZID have surpassed projections and have made a substantial contribution to ACADIA’s cash flow, demonstrating the company’s continued strength.

Additionally, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)’s long-term prospects, despite being one of the worst-performing growth stocks in 2024, remain intact owing to DAYBUE’s long-term prospects with exposure to a market worth over $1 billion. Additionally, about 900 patients already use the drug, an estimated 9000, affirming the substantial room for growth. The stock trades at a great discount with a price-to-earnings multiple of 18 compared to the industry average of 33.

A total of 36 hedge funds reported holding shares of ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) in Q2 2024. Baker Bros. Advisors remained the largest hedge fund holder with 42.88 million shares worth $696.76 million, comprising 8.9% of their portfolio.