NEW YORK (TheStreet) -- Acadia Pharmaceuticals (ACAD) - Get Report shares are flying 10.04% to $26.20 on heavy trading volume Wednesday as the company's key drug in its portfolio is one step closer to being approved by the Food and Drug Administration (FDA).
The drug that aims to treat psychosis associated with Parkinson's disease is called pimavanserin. If the FDA ruling on May 1 goes in Acadia's favor, it could be the first drug approved in the U.S. for Parkinson's disease psychosis.
After looking at results from a late-stage, six-week clinical trial of pimavanserin in 199 patients, the FDA advisory panel Psychopharmacologic Drugs Advisory Committee (PDAC) voted 12 to 2 Tuesday in favor of the drug, noting that the benefits outweigh the treatment risks.
""We are very encouraged by the Committee's positive vote today and look forward to working with the FDA..." CEO Steve Davis stated.
As of 2:30 p.m., around 15.4 million shares had changed hands, more than six times its average trading volume of about 2.5 million shares.
Based in San Diego, Acadia is a biopharmaceutical company that focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders.
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ACAD