Acadia Pharmaceuticals' (ACAD) current stock price undervalues the potential market opportunity of Nuplazid for Parkinson's disease psychosis and Daybue for treating Rett syndrome, which are seen to have a combined annual revenue stream of over $1 billion that "should continue to be sustainable," RBC Capital said in a Thursday note.
The company's broad and evolving pipeline showcased during its R&D Day could drive renewed investor interest, especially as recent IP updates ease concerns about a potential medium-term revenue cliff, the analysts said.
RBC said it remains most optimistic about ACP-204, a next-generation Nuplazid to treat broader neuropsychiatric disorders, which appears to have a stronger safety and efficacy profile based on preclinical data.
RBC said that other early-stage programs offer promising but higher-risk opportunities across several unmet medical needs.
Despite conservative estimates on some early candidates, RBC said it sees a fundamentally higher valuation and pipeline optionality that supports its positive outlook on the stock.
RBC reiterated an outperform rating on the stock with a $38 price target.
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