Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) is having a Happy New Year, as ACAD stock sets the second trading day of the year ablaze with 12%-plus gains. It won’t last, but that’s not what’s important here.
I’m not bearish, if that’s what I’ve led you to believe — it’s just the nature of the pop that foretells profit-taking. That is, the rumor mill is abuzz with word that the sudden 11 a.m. spike in Acadia shares is due to interest from Pfizer Inc. (NYSE:PFE), which is up nearly a percentage point as of this writing.
The rumor is just that — a rumor. It’s not being reported anywhere. Neither PFE nor Acadia have confirmed it. Nope, it’s just screaming down the halls of social media.
But of course, the Street loves to buy the rumor, just ask Twitter Inc (NYSE:TWTR) shareholders. Heck, ACAD stock holders are familiar, too. Remember last June when AstraZeneca plc (ADR) (NYSE:AZN) was the rumored suitor? Acadia stock jumped 10%, but were back down near-20% by the end of the month.
But Could It Happen to ACAD Stock?
Of course it could.
Acadia’s Parkinson’s disease treatment, Nuplazid, has potential galore. Nuplazid, which launched in the U.S. on May 31, 2016, is the only drug approved by the Food and Drug Administration toward the treatment of psychosis brought on by the disease. Net sales for Nuplazid hit $5.3 million in its first full quarter on the market. As InvestorPlace contributor Brian Nichols noted, that’s something a growth-hungry Pfizer would want.
Regardless of whether PFE actually does buy Acadia, ACAD stock bulls are cheering right now because shares finally cracked through the 200-day moving average. This has been a thorn in Acadia stock’s side since it fell through it in early October.
Like I said, it won’t last … but it’s nice to see that the bulls are tripping over themselves to kick down the doors on the slightest rumor.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.