Acadia Pharmaceuticals (ACAD) is a biopharmaceutical company developing and commercializing drugs for the treatment of central nervous system disorders. In its third quarter, the company reported a loss of $4.2 million, or 11 cents a share, narrower than a year earlier.
Looking ahead to the fourth quarter, the company expects to record revenue of $34.7 million compared with $2.3 million in the third quarter. Fourth-quarter revenue will be made up of $25.9 million from the recognition of remaining deferred revenue from Acadia's collaboration with Biovail (BVF).
Moreover, the company adds that its existing cash resources of almost $32.2 million and anticipated payments from ongoing collaborations will fund its operations until mid-2012. On the other hand, the company has adopted austere cost-containment measures and has reduced external service costs as well to maintain profitability levels.
Of the two analysts covering the stock, one recommends buying, the other recommends holding. Currently, the stock is trading at 70 cents. The target price is $5, indicating an upside of 625%.
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