ACADIA Pharmaceuticals Inc.(ACAD) stock sinking continues. It has lost 1% in Tuesday’s pre-market session, as of this writing, after losing 17.23% on Monday, April 5, 2021. ACAD shares have fallen by -49.18% over the last 12 months, and they have moved down by -18.10% in the past week. Over the past three months, the stock has lost -60.38%, while over the past six months, it has shed -49.74%.
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Let’s try to figure out the reasons behind its declining stock value.
Recent update about NUPLAZID (pimavanserin)
On April 5, 2021, Acadia Pharmaceuticals confirmed that it has received a Complete Response Letter from FDA regarding its supplemental New Drug Application for NUPLAZID(pimavanserin).
The CRL said that FDA has determined that the application cannot be approved in its present form.
ACADIA facing several investigations
- On April 6, 2021, Ademi LLP said that it is investigating possible securities fraud claims against Acadia’s new drug application for NUPLAZID
- On April 5, 2021, LabatonSucharow LLP also said that it is investigating ACAD for potential violations of the federal securities laws.
- On April 5, 2021, Acadia Pharmaceuticals investors were invited by Hagens Berman to submit their losses.
- Block & Leviton LLP is also investigating whether Acadia and certain of its executives may be liable for securities fraud.
What’s the matter
The investigations are about the accuracy of Acadia’s disclosures concerning its supplemental new drug application (sNDA) for NUPLAZID (pimavanserin) for the treatment of hallucinations and delusions associated with dementia-related psychosis.
On March 8, 2021, ACAD shareholders received a shock after ACAD stock announced the review outcome of the sNDA by FDA which identified deficiencies. ACAD stock reassured investors on July 20, 2020, that FDA has not identified any potential review issues at this point.
Now FDA has issued a Complete Response Letter rejecting Acadia’s application which results in plummeting of ACAD stock.
Conclusion: Due to the setback it received from FDA about its sNDA for NUPLAZID, ACAD stock is plummeting. Also, several investigations are increasing pressure on ACAD stock. We can expect more sinking of ACAD stock in the coming days.
About Acadia Pharmaceuticals:
ACAD stock was founded in 1993 by Mark Brann Ph.D. and it was named Receptor technologies. 1997, ACAD stock moved to San Diago and changed its name to Acadia Pharmaceuticals. ACAD stock has a rich history of 25 years and mostly working now on making breakthroughs in neuroscience to improve life.