One of the single best biotech stocks to own went unnoticed for months.
But it would go on to produce potential gains of 4,800%. In 2010, we recommended that very stock, ACADIA Pharmaceuticals (ACAD) at $1.24. It would eventually rocket to a high of $51.99 before pulling back.
However, smart investors are again waking up to the name after stellar earnings, news about its progress with Alzheimer’s disease Psychosis (ADP), and a potential buyout offer from Pfizer (PFE).
With regards to ADP, the company’s Phase II-019 study met its primary endpoint, which was a statistically significant reduction in psychosis. Patients using the drug showed a 3.76-point improvement on the test while the placebo group showed only a 1.93-point improvement. Even better, if all goes according to plan, this could be the first FDA approved drug on market to help treat ADP.
Roughly, five million Americans suffer from Alzheimer’s disease with between 25% and 50% developing symptoms of psychosis.
Better yet, earnings have been explosive, too.
Sales of the company’s Parkinson’s disease Psychosis (PDP) drug came in at $5.3 million last quarter, far ahead of $2.6 million expectations. With about 400,000 Americans suffering from PDP, it’s very likely sales will jump higher.