Acadia Pharmaceuticals to Gain From Daybue, Nuplazid Growth; RADIANT Data Adds Risk, Morgan Stanley Says

MT Newswires Live08-10

Acadia Pharmaceuticals (ACAD) could benefit from wider Daybue use, steady Nuplazid growth, higher cash flow and a strong balance sheet, but upcoming Remlifanserin trial data and the stock's valuation keep the outlook balanced, Morgan Stanley said in a note emailed Monday.

STIX should help bring more patients to Daybue rather than mainly shift users away from the oral version, supporting further growth in the Rett syndrome business, Morgan Stanley said, adding that the firm expects Nuplazid to remain a steady growth driver and stay on track toward about $1 billion in sales.

The upcoming phase 2 RADIANT results for Remlifanserin will be a major factor for the stock, with efficacy, safety, responder, cognitive and motor data helping investors judge the drug's potential, according to the note.

The investment firm said it expects Acadia's financial position to improve as sales rise, estimating operating margin will increase to 15% in 2028 from 9% in 2026, while free cash flow could grow to $280 million from $131 million and Acadia's net-cash position should give the company room to fund growth and manage its drug pipeline.

Morgan Stanley kept its equal-weight rating and $27 price target, saying stronger business performance is balanced by the stock trading above its target and the risk around the upcoming RADIANT results.

Price: 29.53, Change: +0.32, Percent Change: +1.10

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