ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)’s Shares Extend Gain After Soaring 135%

The experimental drug of ACADIA Pharmaceuticals Inc.(NASDAQ:ACAD), pimavanserin has decreased psychotic episodes in patients suffering from Parkinson’s disease as compared to a placebo, attaining the primary endpoint of a phase III research, as revealed by the company on Tuesday.

Shares of Acadia rose another 6% in today’s session after soaring 135% to $5.64 in Tuesday session.

Acadia requires to carry perform another phase III study of pimavanserin in Parkinson’s patients so as to confirm results of Tuesday. Two initial late-stage studies of the drug have not been successful to demonstrate a considerable reduction in psychotic events.

Treatment with 40 mg dose of pimavanserin has led to a reduction in psychotic behavior by 5.79 points as compared to a 2.73 point reduction in patients, who were treated with a placebo. The difference of 3.06 point in the two arms of the phase III study was statistically important.

Reduction in psychotic behavior is focused majorly on delusions and hallucinations and was measured with the help of a 9-item scale adapted from the Saps, Scale for the Assessment of Positive Symptoms.

Pimavanserin has got its antipsychotic nature without worsening motor function in patients with Parkinson’s disease. This has met a key secondary perspective of the examination.

Jason Napodano, a Zacks analyst said that the pimavanserin information is better than expected. The US market opportunity for pimavanserin in Parkinson’s disease psychosis lies in between $300-$400.

The San Diego-based company does not have any approved drugs and pimavanserin is the most advanced experimental product of Acadia. The company is also running mid-stage experiments of the drug as a treatment for schizophrenia and psychosis in Alzheimer’s patients. Acadia is also experimenting treatments for glaucoma and chronic pain.

An analyst of JMP Securities, Jason Butler said that there are restricted treatment options at the moment. Being able to use a safe and easy drug could really be meaningful for patients.