Core Insights - Acadia Pharmaceuticals' experimental drug carbetocin failed in Phase 3 testing for treating excessive hunger in patients with Prader-Willi syndrome, leading to a nearly 12% drop in its stock price [2][3][4] - The company has decided to halt further development of carbetocin, as it did not show statistically significant improvement compared to the placebo group [4] - Despite the setback, Acadia is positioned for long-term growth with two approved products expected to generate $1 billion in net sales this year and a pipeline of eight disclosed and multiple undisclosed programs [5][6] Company Performance - Acadia Pharmaceuticals' stock fell to approximately $20.80, marking an 11-week low following the news of the drug failure [3] - RBC Capital Markets analyst Brian Abrahams suggested that the stock's decline presents a buying opportunity, maintaining an outperform rating with a price target of $40 [6] Competitive Landscape - The failure of Acadia's drug has positively impacted Soleno Therapeutics, which is also developing a treatment for Prader-Willi syndrome, resulting in a 13.4% increase in its stock price to $64.49 [3][6] - Soleno Therapeutics has received a Relative Strength Rating upgrade, indicating improving technical performance [7][8]