Seeking Alpha By: Scott Matusow
ARTICLE : Obagi Medical Products Acquired Wednesday, These Biotechs May Be Next
Acadia is a developmental biopharma that focuses on the development of drugs for central nervous system disorders. Acadia shares have been on the rise from the $1.50 range to a close of $6.65 (on 3/20/13). Acadia has drug candidates for the treatment of Parkinson's disease, Alzheimer's, schizophrenia, and glaucoma. These conditions are all connected with large market size and present significant opportunities for big pharma. Acadia has shown ability in the past to partner or collaborate with larger companies such as Biovail, Allergan, and Meija Seika Kaisha, LTD. It is not being overly presumptive to assume that big pharma would have interest in Acadia for its lead drug pimavanserin, which possesses potential for massive revenue in multiple applications.
On Tuesday of this week, Acadia received new coverage from Jefferies who initiated the company as a "Buy" with a $13 price target. The firm notes that pimavanserin is a drug for which there is currently noFDA-approved counterpart. Jefferies also commented on Acadia being a highly attractive licensing/acquisition target for big pharma companies