Acadia Pharmaceuticals (ACAD) notified that the Food and Drug Administration found its ‘psychosis’ drug to be deficient for adequate treatment. Therefore, ACAD stock declined in late trading. In premarket trading on the stock market, ACAD stock decreased40% reaching approximately 27.11. The news late Monday put ACAD stock on track to open at its lowest point since September 2019.
The drug named as pimavanserin is under consideration as a treatment for psychotic encounters and dementia-related delusions. However, disapproval by FDA has slowed down the drug penetrating the market and has given significant time to their competitors for further research and development.
ACAD being Investigated for Potential Securities regulatory Violations by Block & Leviton.
Block & Leviton LLP, a federal securities litigation firm, notified that it is investigating Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) for possibledisruptions of national security laws.Block & Leviton LLPis investigating if Acadia and some specificboard executives may be liable for securities fraud.
The investigation has proved to be a red flag for the investors who have been skeptical to further invest with many investors expecting a number of risks and uncertainties.
ACADIA Pharmaceuticals (NASDAQ:ACAD) Before The Plummet
ACADIA Pharmaceuticals (NASDAQ:ACAD) stock has risenan incredible 191% in the last five years.ACAD saw its revenue increaseby 56% every year, since 2015.
Meanwhile its share price performance certainly reflects the strong growth,ACADIA Pharmaceuticals made a loss in the last twelve months, having established a plan to increase in revenue, considering long term profitability for the company.
ACADIA Pharmaceuticals Inc. operates in the lucrative field of development, and commercialization of small molecule drugs grasping attention from various investors. It’s long-term revenue growth and incredible increment of stock price has proven to be a success however recent disapproval by the FDA and litigation problems have plummeted ACAD stocks substantially.