Shares of Acadia Pharmaceuticals (ACAD) dropped Tuesday as analysts assessed the biopharmaceutical company's regulatory update for pimavanserin, the company's psychosis treatment.
Acadia said Monday that the U.S. Food and Drug Administration had identified "deficiencies" that preclude any labeling discussions.
"The notification does not specify the deficiencies identified by the FDA and there has been no clarification by the FDA at this time," the company said in a statement.
Acadia said it "plans to work with the FDA to learn the nature of the deficiencies and seek to resolve them."
Acadia shares fell 6.5% Monday and were down 43% at last check on Tuesday.
Stifel analyst Paul Matteis downgraded the stock to hold from buy while also slashing his price target to a Wall Street low $27 a share from $68, according to Bloomberg.
Jefferies analyst Chris Howerton maintained his buy rating while cutting his price target to $40 from $62. He said it was unclear what the exact deficiency is based on Monday's release and that the announcement doesn't preclude approval sometime in the future.
Cantor analyst Charles Duncan maintained his overweight rating while cutting his price target to $45 from $70. The firm said it was "more than surprised" with the FDA's late-cycle ruling, which delays the potential clearance and launch of the drug.
Pimavanserin is being developed to treat hallucinations and delusions associated with Parkinson's disease psychosis.