Because they're sitting on a potential meg-blockbuster with no more clinical trials needed. You sound like you know a lot so maybe you can help me out. How many times has the FDA waived off a second Phase 3 clinical trial in the CNS space? Give up? Never prior to Pimavanserin....that's why this stock you refer to as a 'bubble stock' is trading at $1.6B. Guess what else....it's underpriced in my opinion. We could just as easily be at $3B based on the potential of Pimavanserin.
I've been investing in biotech/pharma for a couple of decades now and I personally cannot think of any CNS company that can serve as a comp. The only company that comes to mind is Cephalon with Provigil. No one at the time thought it would amount to much, but everyone was proved wrong there. You could use Neurocrine or Titan as comps but Neurocrine's insomnia drug failed and Iloperidone from Titan was a me-too than only made it to market after many many trials and tribulations.
Having a first-in-class novel candidate with mega-blockbuster status like Pimavanserin is almost unheard of in CNS. I can't recall a small company ever having something like this. Yes, large pharma is frothing at the mouth. They have to be....this is a franchise drug...you can literally build a company around it.
I'm starting to find myself agreeing with the super longs who are calling for a $200 share price. Hype is totally foreign to me...I'm beyond pragmatic. I am definitely defensive in terms of style. However, even I have to accept that Pimavanserin is what we all sit around hoping for. It's beautiful.
This is all just my opinion and everyone should do their own DD.
Have a great weekend everyone!
normally when you invest in a company u have to go by their guidance and in general take their word for it, with acad there is no guess work, because the fda waived the trial, acad itself is not pumping the stock and management is selling shares (everything the opposite of regular company behavior, because they are trying to keep price down, shorts are falling right in to the trap ) so the only question is what is pima worth? if u take the lowest est for pdp and off label it will be 500 mill which puts a value on acad of $70 per share and then take the high est of 3 bill which puts a value of $300+ per share....... so acad value is somewhere in between.........they may be dragging out the process to save money on taxes.........there may be hidden value in the technology that acad patented which no one is considering.......i am the most conservative person that i know, originally my plan was to sell half my position at 12-$15, after looking at the facts not only that i didnt sell but i bought more shares at 18+.........good luck everyone........
Sentiment: Strong Buy
If you knew anything about bio or any stocks you would understand that these get priced based on future earnings. I am not going to waste my time explaining the money this could generate so just take all your money and go all in short and we will re hash this in 2014 GL2ALL Mike
This heat wave is bringing out all the morons....forced from under their bridges, they go to the public library for some AC and hit the yahoo finance chat boards....its a shame...like Detroit...