3 Keys to Acadia's Future

By Brandy Betz - June 3, 2013 | Tickers: ACAD, AGN | 0 Comments

Brandy is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Acadia Pharmaceuticals (NASDAQ: ACAD) had a busy couple of months. The new member of the Nasdaq Biotechnology Index recently completed a $150 million public offering to help push lead drug candidate pimavanserin, a treatment for Parkinsons disease psychosis, or PDP.

In April, Acadia shares soared over 50% when the company filed an accelerated new drug application for pimavanserin after talks with the Food and Drug Administration. The pipelines scant but includes areas of unmet need and an Allergan (NYSE: AGN) partnership. Whats next for Acadia?

Here are three things to know about Acadias future.

1. Lead Drug

Pimavanserins accelerated filing pertains to PDP, but the companys pursuing mid-stage trials for additional indications that include Alzheimers disease psychosis, or ADP.

Parkinsons disease has no cure but the symptom treatments work by increasing the brains supply of dopamine. Pimavanserin is non-dopaminergic -- meaning, it doesnt impact dopamine levels and thus wont interfere with primary treatment. Acadia estimates that PDP occurs in up to 60% of Parkinsons patients.

According to Decision Resources, the overall Parkinsons treatment market will remain relatively flat over the next decade, at around $2.4 billion, due to generic competition. But pimavanserin could become the first true treatment for PDP.

Doctors currently treat the psychosis with off-label use of atypical antipsychotics. Two main drugs help the psychosis without worsening other PD symptoms: Novartis Clozaril and AstraZenecas Seroquel. But both drugs carry an FDA black box warning against use in elderly patients with dementia. And Clozaril also carries the risk of a serious blood condition.

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3 Keys to Acadia's Future