Goldman Sachs Reaffirms Sell Rating for Acadia Pharmaceuticals Following Disappointing Trial Results
Goldman Sachs has reaffirmed its Sell rating for Acadia Pharmaceuticals (ticker not specified), citing disappointing results from a Phase 2 trial of remlifanserin in Alzheimer's disease psychosis. The study, which evaluated the efficacy of remlifanserin as a treatment for this condition, failed to meet its primary endpoint with an effect size of 0.26 and p-value of 0.0603.
The trial was powered at 80% for an effect size of 0.4, but Acadia plans to continue its Phase 3 program based on nominal significance on a secondary endpoint. This decision is likely influenced by the drug's favorable safety profile, which showed no evidence of QT prolongation or adverse effects on cognition or motor function.
Despite Goldman Sachs' bearish stance, 10 analysts have revised their earnings upwards for Acadia Pharmaceuticals in the upcoming period, while InvestingPro's Fair Value analysis suggests that the stock is undervalued at current levels. The company maintains a strong financial health score, with more insights available through InvestingPro's comprehensive Pro Research Report.
Acadia management has reiterated peak sales expectations of approximately $4 billion across Alzheimer's disease psychosis and Lewy body dementia psychosis, while Visible Alpha consensus data shows peak sales of approximately $2 billion. Detailed Phase 2 data will be presented at the Clinical Trials on Alzheimer's Disease (CTAD) conference from November 16-19.