ACADIA Pharmaceuticals (NASDAQ:ACAD) stock fell more than 6% on Monday as one of the company’s drugs is being investigated for its efficacy.
The Southern Investigative Reporting Foundation’s Roddy Boyd said that he had major concerns about the benefits and risks of the company’s sole drug, Nuplazid. He also had concerns regarding the company’s sales tactics.
His report was published Monday morning and it was titled “Acadia Pharmaceuticals: This Is Not a Pharmaceuticals Company.” The report discovered that the company used certain regulatory loopholes to get Nuplazid approved.
The medication is an anti-psychotic for Parkinson’s disease and the company reportedly masked issues surrounding how safe the drug is and how well it works. Acadia Pharmaceuticals has been marketing the drug heavily for use in patients with dementia in long-term care facilities.
There is a warning on the medication about safety issues with that population, most of which are safety issues or adverse events linked to the drug. The report also questions the company’s sales tactics, calling them: “In a word, Acadia didn’t just open up its corporate wallet for doctors: It pointed a hose and sprayed cash at them.”
It is unclear how well the drug works in treating patients with mental illness but the company stands by its efficacy.
ACAD stock was down about 6.8% on Monday following the news.