ACADIA Pharmaceuticals Inc. (ACAD): FDA Throws This Stock a Juicy Bone

So, is ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) a buy now? With the risk removed, it’s more appealing, but you have to be willing to wait. We’re still a year and a half away from filing the application, and then there’s another eight to 12 months before pimavanserin will be approved.

With a market cap of $950 million, there’s some room to run once the drug hits the market in 2015. Pimavanserin shouldn’t have too much trouble taking away sales from Risperdal, Zyprexa, Abilify, Geodon, and the like since it’ll be approved for the indication and the others aren’t. More importantly, pimavanserin doesn’t seem to affect motor skills of Parkinson’s patients as much as the atypical antipsychotics do.

The bear thesis may be gone, but unfortunately, it’s going to take a long time to prove the bull thesis correct.

The article FDA Throws ACADIA a Juicy Bone originally appeared on Fool.com is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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