Acadia Pharmaceuticals (ACAD) Shares Surge 3.07% to New Peak on Q2 Earnings, Patent Wins

Shares of Acadia Pharmaceuticals (ACAD) reached a new peak on August 7, 2025, surging 3.07% intraday to mark its highest level since August 2025. The stock has gained 2.52% in a five-day winning streak, reflecting renewed investor confidence in the biotech firm’s strategic and operational progress.

The strategy of buying ACAD shares after they reach a recent high and selling them a week later yielded poor results over the past five years. The strategy had a -12.75% return, underperforming the benchmark by 76.10%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.11, the strategy indicated a high-risk, low-reward profile, highlighting the challenges of timing trades on short-term price peaks.

The rally followed robust second-quarter financial results, with revenue rising 9.3% year-over-year to $264.6 million, driven by strong performance from flagship products Nuplazid and Daybue. Nuplazid, the first FDA-approved treatment for Parkinson’s disease psychosis, generated $168.5 million in net sales—a 7% increase—while Daybue, launched in 2023 for Rett syndrome, achieved $96.1 million in revenue, a 14% year-over-year jump. These results prompted Acadia to raise its 2025 revenue guidance for Nuplazid and reaffirm total revenue forecasts between $1.045 billion and $1.095 billion.

Critical to the stock’s momentum were recent court victories extending Nuplazid’s patent protections until 2038. A U.S. District Court upheld the drug’s formulation patent, and the Federal Circuit validated its composition of matter patent, delaying generic competition and preserving market exclusivity. These legal wins reinforce Nuplazid’s dominance in its therapeutic category, ensuring long-term revenue stability amid competitive threats.

Investor optimism was further fueled by advancements in Acadia’s R&D pipeline. The Phase III COMPASS PWS study for ACP-101, a potential treatment for Prader-Willi Syndrome, completed enrollment, with top-line data expected by year-end. A successful outcome could lead to an FDA submission in early 2026. Meanwhile, Daybue’s regulatory filing for Rett syndrome is under review in the EU, with a decision anticipated in Q1 2026. These developments underscore the company’s focus on expanding its rare disease portfolio.

Financially, Acadia ended the quarter with $762 million in cash, reflecting disciplined capital management. Analysts highlighted the firm’s strategic leadership changes, including new SVP appointments for rare disease and data initiatives, as signals of operational strength. Stifel and other firms raised price targets, citing confidence in revenue growth and pipeline potential, though mixed historical trading patterns post-earnings underscored lingering market skepticism about earnings sustainability.

While challenges such as Daybue’s lower treatment persistence and ACP-101’s regulatory risks remain, Acadia’s extended patent protections and commercial execution provide a foundation for sustained growth. The stock’s recent surge reflects a balance of near-term revenue momentum and long-term catalysts, positioning it as a key player in the biotech sector.