At some point, the Baker Brothers will own 145 percent of Acadia. I don't know how that's mathematically possible, but the fund will figure out a way. Once that happens, all the other hedge funds and retail investors who buy whatever stock Baker Brothers is buying will buy more Acadia.
I'm joking, of course, but only a little bit. Baker Brothers, already the largest Acadia shareholder, disclosed an upsized 23 percent stake in the company last week. High-conviction stocks in the Baker Brothers portfolio -- think Seattle Genetics (SGEN) and Pharmacyclics (PCYC) -- tend to perform really well, sometimes regardless of near-term fundamentals.
Oh yeah, it's worth noting that Acadia has a potential blockbuster drug in pimavanserin, which will be submitted to FDA as a new treatment for Parkinson's disease psychosis near the end of 2014.
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