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Monday, Oct 14
Acadia jumps as article predicts blockbuster pimavanserin sales
- Acadia Pharmaceuticals (ACAD +9.3%) is enjoying a strong session.
- Perhaps helping to tip sentiment is SA Contributor Brian Nichols, who says the company's antipsychotic drug pimavanserin has "the greatest sales potential since Lipitor" — good news, considering Lipitor is the best-selling drug in pharmaceutical history.
- Nichols goes on to predict peak global sales of $20.45B, and says his "five key points ... suggest that sales could be even greater."
- As for a target price, Nichols says three times sales for companies with assumed blockbusters (cited are Alexion and Pharmacyclics) isn't unreasonable, and just to be on the safe side, the author discounts peak sales by "a whopping 50%," then multiplies $10B times three to get a valuation of ~$30B.
- Ultimately, Nichols says "a target price over $300 is not unrealistic." This represents upside of around 1,295% from Friday's close.