Over the last year, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) has seen its stock rise 1,000% (not a typo) for the mere reason that no one expected such good results from its Parkinson’s Disease study. Yet, with it emerging as a leader, it now becomes very attractive to those companies with the marketing teams in place and with current antipsychotic medications in the market.
Pimavanserin is special because it does not produce many of the side-effects found with other antipsychotics, and now with the FDA saying “no Phase 3 necessary” I tend to believe that big pharma is taking a close look at ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). Once Pimavanserin is available to the market, several blockbuster drugs could see sales significantly decline, as Pimavanserin would be the better drug.
One company that I think could be looking to acquire ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is Johnson & Johnson (NYSE:JNJ). The company has been quiet in the acquisition space of high-profile companies, and ACADIA could add some excitement for investors. Moreover, its blockbuster drug Risperdal (over $1.5 billion annually), is used freely for off-label indications, including Parkinson’s Disease psychosis.
Currently, there are no approved drugs for Parkinson’s Disease psychosis, as no company has been able to show a clinical effect; besides ACADIA. Thus, the launch of Pimavanserin could cripple the sales for such products (Risperdal) that are used off-label for certain antipsychotic indications. Thus, while Johnson & Johnson (NYSE:JNJ) remains a possible acquirer, and could keep its blockbuster drug with the acquisition, other companies such as Eli Lilly (Zyprexa) and Bristol-Myers (Abilify) might also want to maintain their blockbuster sales; and can do so with an acquisition of ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD).
Conclusion
I worked in the biopharmaceutical space for more than two decades, from a sales rep, to a trainer, and all the way to an R&D specialist. When assessing a new technology, I always looked for what both ACADIA and Celldex Therapeutics, Inc. (NASDAQ:CLDX) offer.
Celldex, with its massive pipeline and immunotherapy presence, could lead to further development and massive combined sales. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), with Pimavanserin, is going to control much of the antipsychotic market, and when threatened, big pharma buys. Thus I wouldn’t be surprised if both companies are receiving serious interest and are acquired at some point in the next year with massive premiums.
The article 2 Biotech Stocks That Could Soon be Acquired originally appeared on Fool.com and is written by Sherrie Stone.
Sherrie Stone owns Celldex Therapeutics and ACADIA Pharmaceuticals. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Sherrie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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