ACAD Signs License Deal With Saniona for Rights to Neurology Drug

Licensing Agreement and Strategic Focus - Acadia Pharmaceuticals signed an exclusive worldwide license agreement with Saniona to develop and commercialize SAN711, a first-in-class GABAA-α3 positive allosteric modulator [1] - SAN711 will initially be studied for essential tremor, a neurological condition with significant unmet treatment needs, with a mid-stage study planned for 2026 [2][3] - The agreement includes an upfront payment of $28 million and potential milestone payments of up to$582 million, with tiered royalties on net sales [5][6] Financial Performance and Marketed Portfolio - Acadia's shares have declined 48.2% year-to-date, significantly underperforming the industry's 7.8% decline [4] - The company's marketed portfolio includes Nuplazid and Daybue, with Nuplazid generating $446.5 million in revenue in the first nine months of 2024, a 10% year-over-year increase [7][9] - Daybue, approved for Rett syndrome, was launched in April 2023 and contributes incremental revenue [8][9] Pipeline Development and Future Growth - Acadia is evaluating carbetocin nasal spray (ACP-101) in a phase III study for Prader-Willi syndrome and plans to submit a new drug application upon successful results [11] - The company is also developing ACP-204 for Alzheimer's disease psychosis, with a mid-stage study initiated in Q4 2023 [12] - Future approvals of pipeline candidates could diversify revenue streams and reduce reliance on Nuplazid [13] Industry Comparison and Peer Performance - Acadia currently holds a Zacks Rank 3 (Hold), while peers like Allogene Therapeutics, Pfizer, and Gilead Sciences hold a Zacks Rank 2 (Buy) [14] - Allogene Therapeutics' loss per share estimates have narrowed, with shares down 21.5% year-to-date [15] - Pfizer's earnings estimates have risen, with shares down 10.6% year-to-date, while Gilead Sciences' shares have risen 12.8% year-to-date [16][17]