Three Keys to ACADIA Pharmaceuticals Inc. (ACAD)’s Future

3. Financial position

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) had no capital expenditures last quarter and a negative cash flow of about $7 million. Cash and equivalents amounted to around $18 million. The public offering was necessary to safely move pimavanserin towards market — especially since another Acadia drug won’t approach approval anytime soon.

Will ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) need another fundraiser before the market? Investors would breathe easier with a bit more money, particularly if it came via a big pharma commercialization partner.

Foolish final thoughts

Pimavanserin is Acadia’s near future with its potential for a PDP approval and off-label ADP usage. This area of unmet need could reflect in decent sales right out of the gate. Acadia would also benefit for a big pharma partner stepping in with either an pimavanserin backing or a cooperation with Allergan on the pain projects.

Brandy Betz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Keys to Acadia’s Future originally appeared on Fool.com.

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