FDA Panel Votes in Favor of ACADIA Pharmaceuticals Inc. (ACAD)

An FDA panel ruled favorably on ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)

Mar 29, 2016 at 3:20 PM
facebook twitter linkedin

A Food and Drug Administration (FDA) panel voted 12-2 this afternoon that ACADIA Pharmaceuticals Inc.'s (NASDAQ:ACAD) Parkinson's disease psychosis (PDP) drug, Nuplazid, has been shown to be substantially effective. This likely puts the drug on a path toward FDA approval. 

ACAD has been halted all day Tuesday as Wall Street awaited the FDA panel's decision. The shares settled last night at $23.81 after gapping higher on Monday, but remain 33% lower for 2016. 

This will likely be bad news for ACADIA Pharmaceuticals Inc.'s (NASDAQ:ACAD) short sellers, though. Specifically, the more than 17 million ACAD shares sold short would take upwards of eight trading days to buy back, at the stock's average daily volume. In light of today's FDA news, a rush to cover by some of the weaker bearish hands could result in tailwinds for ACAD shares. 

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners