The ACADIA Pharmaceuticals (ACAD) crashed in the after-hours trading after the FDA released its report regarding Psychosis treatment. The company share price crashed on Monday 8th march in an after-hours trading session and closed at $29.30 per share, after declining in the value by 36%. The company also received the shocking news that Block & Leviton LLP is investigating Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) for potential violations of the federal securities laws.
What the FDA said:
The ACAD said that it has received the notification from the U.S. Food and Drug Administration (FDA) about its ongoing review of the Company’s supplemental New Drug Application (sNDA).
In the update, FDA notified it of deficiencies in its application for a psychosis drug. The drug by ACAD is known as Pimavanserin which is under consideration for the treatment for hallucinations and delusions associated with dementia-related psychosis. FDA said that it had identified deficiencies that preclude discussion of labeling and post-marketing. the FDA said that the notice is not the final verdict and the FDA notice does not say anything specific about the deficiencies and there has been no clarification by the FDA at this time.
On this setback new, the ACAD said that the company plans to work with the FDA got to learn the nature of the deficiencies and seek to resolve them
The investigation by Block & Leviton LLP:
Block & Leviton LLP is a law firm that represents investors and they aim to maintain the integrity of the country’s financial markets. It is one of the biggest firms, which represents the largest institutional investors as well as individual investors in securities hearing throughout the U.S.
About Acadia Pharmaceuticals:
The company was founded in 1993 by Mark Brann PhD and it was named Receptor technologies. 1997, the company moved to San Diago and changed its name to Acadia Pharmaceuticals. The company has a rich history of 25 years and mostly working now on making breakthroughs in neuroscience to improve life. In the last 25 year company brought many vital solutions to the medical field developed and commercialized the first and only approved therapy for hallucinations and delusions associated with Parkinson’s disease psychosis.