ACADIA Pharmaceuticals, Inc. (ACAD)

daviddai (50.03) Submitted: 3/20/07 2:51 AM : Start Price: $13.24 ACAD Score: -59.40

1. More candidates!! The drug maker's positive phase 2 data is not only a prove of concept that ACP-104 targeting 5-HT receptors works on groups of schizophrenic patients while maintaining relatively safe profile, but is also indicative of the feasibility of their properitary screening platform technology. Acadia houses more than 800,000 compound in their library targeting G-coupled receptors and tyrosine receptors. Since G-coupled receptors and tyrosine kinase receptors are the most common receptors involved in psychiatric disorders, high throughput screening using their large compound library will ultimately result in more discovery in preclinical trials.





2. Buyout waiting to happen. Even though trading at $10+/share is overvalued because of the hype of clinical data, and the pivotal phase 3 clinical trial on a larger schizophrenic population is yet to be tested, I think the results has garnered attention of other pharmaceutical companies trying to get their hands on the 11 billion dollar psychiatric therapy pie. While big pharmas have neither the technology, nor the compound library for drug discovery, acquiring a small cap biotech with feasible technology will strengthen their product pipeline.

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