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Here's How Much a $1000 Investment in Acadia Pharmaceuticals Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Acadia Pharmaceuticals (ACAD - Free Report) ten years ago? It may not have been easy to hold on to ACAD for all that time, but if you did, how much would your investment be worth today?

Acadia Pharmaceuticals' Business In-Depth

With that in mind, let's take a look at Acadia Pharmaceuticals' main business drivers.

San Diego, CA-based ACADIA Pharmaceuticals Inc. is a biopharmaceutical company focused on developing innovative medicines to address the unmet medical needs in central nervous system (CNS) disorders.

The company’s sole marketed drug Nuplazid (pimavanserin) is the first and the only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease (PD) psychosis. The drug was launched in May 2016. ACADIA’s top-line consists of only net product sales of Nuplazid in the United States.

In April 2021, the company suffered a setback, when the FDA issued a complete response letter (CRL) to the supplemental new drug application (sNDA) for Nuplazid for treating dementia-related psychosis. In December 2021, ACADIA announced that it plans to resubmit the sNDA for Nuplazid for the treatment of hallucinations and delusions associated with dementia focused on Alzheimer’s disease psychosis (“ADP”).

Notably, several additional studies on Nuplazid n targeting different CNS indications, such as dementia-related psychosis, schizophrenia inadequate response, schizophrenia negative symptoms and as an adjunctive treatment of major depressive disorder (MDD) are currently underway.

Meanwhile, in August 2018, ACADIA entered into a license agreement with Australian biopharmaceutical company Neuren Pharmaceuticals Limited and obtained exclusive North American rights to develop and commercialize trofinetide for Rett syndrome and other indications.

ACADIA’s top line mainly comprises U.S. sales of Nuplazid. The company recognized revenues worth $441.7 million in 2020 compared with $339.1 million in 2019.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Acadia Pharmaceuticals, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in February 2012 would be worth $14,745.95, or a 1,374.59% gain, as of February 16, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 232.86% and the price of gold went up 3.02% over the same time frame.

Looking ahead, analysts are expecting more upside for ACAD.

ACADIA’s sole marketed drug, Nuplazid, has recorded strong sales since its launch. It’s top line consists of only net product sales of Nuplazid. The drug’s label-expansion program looks promising, with several studies that are currently underway. The company plans to file for Nuplazid label expansion in first quarter 2022. If approved, not only will the drug’s eligible patient population be expanded, but will boost sales in days ahead. However, heavy dependence on Nuplazid for revenues remains a worry. Also, the regulatory setback, wherein the FDA issued a complete response letter for Nuplazid’s label expansion, hurt the stock severely. Stiff competition in the target market also remains a woe. Shares of the company have underperformed the industry in the past year.

The stock has jumped 30.28% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2021; the consensus estimate has moved up as well.

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