Acadia Pharmaceuticals (NASDAQ:ACAD) stock is taking a beating on Tuesday after revealing an update from the U.S. Food and Drug Administration (FDA).
The FDA supplied a response to the company’s supplemental New Drug Application (sNDA) for pimavanserin. This is a drug designed by Acadia Pharmaceuticals to treat hallucinations and delusions associated with dementia-related psychosis.
According to the FDA’s update, it found “deficiencies that preclude discussion of labeling and post-marketing requirements/commitments at this time.” The FDA didn’t say what these deficiencies were in its update.
Acadia Pharmaceuticals says that it’s working with the FDA to learn more about the issue with its sNDA. It hopes that it can resolve the issues with the cooperation of the agency.
It’s no surprise that poor news from the FDA would have a negative effect on ACAD stock. Investors don’t want to hear that a potential drug won’t get FDA approval or that it could be delayed for some reason.
The news has also resulted in heavy trading of ACAD stock today. As of this writing, more than 14 million shares have traded. That’s an increase over the stock’s daily average trading volume of nearly 1 million shares.
Acadia Pharmaceuticals is a pharmaceutical company focused on the development and commercialization of “small molecule drugs for the treatment of central nervous system disorders.” It was founded in 1993 and its headquarters is located in San Diego.
ACAD stock was down 48% as of Tuesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.