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

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

Josh Selway

Mar 29, 2016 at 3:20 PM

ACAD

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.

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