Cowen - ACAD Takes The Next Step Toward Commercialization..Outperform.
August 19, 2013- Recommendation Rating: Outperform Price Target: $25.00
ACADIA PHARMACEUTICALS (NASDAQ:ACAD)
ACAD Takes The Next Step Toward Commercialization
This morning, Acadia reported the hiring of Terrence Moore as EVP and Chief Commercial Officer. We believe Mr. Moore is ideally suited to run the commercialization effort of pimavanserin for PDP given his previous involvement in the commercialization of CNS blockbusters such as Prozac, Zyprexa, Risperdal and Effexor XR. Specifically, Mr. Moore's experience with atypical antipsychotics, Risperdal and Zyprexa, should be directly applicable to the commercialization of pimavanserin, which we view as more "evloved" than current
Given management's previously guided timeline of an NDA filing by end of 2014 and commercial launch by late 2015, the hiring of a COO in 3Q13 seems quite timely. Given that antipsychotics is a crowded space, we believe the advanced hiring of a CCO gives Acadia sufficient time to carefully plan and successfully launch pimavanserin for PDP as well as explore the potential marketplace and demand for other indications for pimavanserin. We believe pimavanserin may see meaningful off-label usage as is the case with many other CNS drugs.
As reported during the 2Q13 earnings call, CMC and DDI studies are on track and we continue to be bullish on Acadia shares based on ongoing clinical development as well as today's news of hiring a highly competent CCO.