Acadia Pharmaceuticals initiated with bullish view at Citi, here’s why

Citi initiated coverage of Acadia Pharmaceuticals with a Buy rating and $38 price target. Over the past two years, the market has penalized Acadia for mishaps on both clinical and commercial execution from which the stock has yet to recover, the analyst tells investors in a research note. After speaking with management, the firm is encouraged by the company’s new direction with Daybue in Rett and ACP-204 in Alzheimer’s disease psychosis. It says the legacy Nuplazid business continues to throw off $300M in free cash flow, “which will provide resources to reach the next chapter in Acadia’s story.”