Acadia Pharmaceuticals initiated with an Outperform at Baird

Baird initiated coverage of Acadia Pharmaceuticals with an Outperform rating and $40 price target. The firm sees a favorable risk/reward heading into trial data coming in late February or March for Nuplazid for the treatment of negative symptoms of schizophrenia, saying it sees a 45% probability-of-success for the top-line phase 3 results. The firm views commercial agents Nuplazid for Parkinson’s disease psychosis and Daybue for Rett syndrome as providing “a strong base business” and adds that Phase 2 agent ACP-204 for Alzheimer’s disease psychosis “adds an attractive longer-term shot on goal.”