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.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners