Acadia Pharmaceutics surged about 6% higher as investors revived the takeover chatter, citing the usual "unconfirmed sources" and tossing the $60.00 dollar a share acquisition price as a likely number that can seal a deal. The interested suitor is presumed to be Biogen (NASDAQ:BIIB) with an outside chance Pfizer might try to break up the marriage with its own offer.
What Does Allergan Have That BIIB May Want?
Acadia is valuable to BIIB, and even Pfizer (NYSE:PFE) for that matter, with the prize being NUPLAZID, a drug that treats psychosis that is associated with Parkinson's disease. NUPLAZID was voted on favorably by an FDA advisory committee in March of this year receiving a vote of 12-2 for approval based on its trial results and believe that the drug can provide substantial benefit to patients that outweigh the risks associated to the treatment. NUPLAZID was quickly approved for patients in early May, becoming the first ever drug in the USA to be approved to treat Parkinson's Disease related psychosis.
Now approved, NUPLAZID is targeting the four to six million people globally that are stricken by the disease, with about 40% of these patients suffering from the disease psychosis, often characterized by delusions and hallucinations. Since the approval, Acadia has become the belle of the ball, holding onto an asset in NUPLAZID that is estimated to reach peak sales of over $3 billion dollars annually.
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