Goldman Sachs Maintains Sell on Acadia Pharmaceuticals, Raises PT to $17.

Goldman Sachs Maintains Sell on Acadia Pharmaceuticals, Raises PT to $17.

Goldman Sachs has maintained a 'Sell' rating on Acadia Pharmaceuticals (ACAD) while raising the price target to $17, as reported on July 2, 2025. The decision comes amidst a period of strong financial performance for the biopharmaceutical company, which saw a 9% increase in second-quarter revenue to $264.6 million [1].

The company's sales growth was driven by robust demand for its neurological drugs, NUPLAZID and DAYBUE. NUPLAZID, targeting Parkinson’s disease, saw a 7% increase in sales, while DAYBUE experienced a 14% sales jump from the previous year, marking a new high for paying users [1]. These strong performances prompted Acadia to boost its full-year sales outlook to as much as $1.095 billion [1].

Despite the positive earnings report, Goldman Sachs remains cautious. The firm cited concerns over the company's valuation, which is now trading at 34 times forward earnings, a significant climb from the 21 times three months ago [1]. The steep valuation reflects analyst excitement, with 13 out of 20 analysts betting on more gains, but it also sets a high bar for continued success [1].

Goldman Sachs' decision to maintain a 'Sell' rating underscores the challenge of balancing high expectations with the reality of maintaining exclusivity and meeting pipeline milestones. The company's strategy of locking in patent protections for NUPLAZID and awaiting key study results for pipeline drug ACP-101 is crucial for its long-term success in the competitive biotech market [1].

In the broader context, Acadia's performance highlights the growing focus on neurological and long-term disease solutions within the biotech industry. By securing fresh patent protections, the company is positioning itself to sustainably grow in a market increasingly pressured by competition and evolving healthcare needs [1].

References:
[1] https://finimize.com/content/acadia-pharmaceuticals-raises-guidance-as-sales-climb-in-q2