Acadia Pharmaceuticals just downgraded at Deutsche Bank, here’s why

Deutsche Bank downgraded Acadia Pharmaceuticals to Hold from Buy with an unchanged price target of $25. The analyst thinks the reaction to the favorable summary judgment on pimavanserin’s litigation was “slightly overdone.” To see additional near-term upside from here, high conviction is needed that the pimavanserin negative symptoms of schizophrenia Phase 3 ADVANCE-2 readout, expected in Q1 of 2024, is likely to be positive and that peak sales could be close to $1B and Daybue can meaningfully outperform consensus expectations near-term and long-term, the analyst tells investors in a research note. The firm sees “real risks to each of these being achieved.”