Another look at the news in the week to April 1

By Barbara Obstoj-Cardwell. Editor

The USA’s Acadia Pharmaceuticals received a significant boost last week, when a US Food and Drug Administration advisory panel voted to recommend approval of the company’s Nuplazid (pimavanserin) for psychosis associated with Parkinson’s disease, with its shares leaping 25% in pre-market trading the following day.

If approved by the FDA, Nuplazid would be the first drug indicated to treat psychosis associated with Parkinson's disease, commented Bret Jensen of Premium Research on the Seeking Alpha blog. According to the National Parkinson Foundation, about one million people in the USA and from four to six million people worldwide suffer from Parkinson's disease. An estimated 40% of these patients have Parkinson's disease psychosis. Mr Jensen said he has seen at least one analyst state this drug could be generating $1.4 billion in annual sales by 2020. Obviously Nuplazid could be a significant driver for Acadia, which has less than a $3 billion market capitalization, noted Mr Jenson. The drug is also in late-stage trials for a couple of other indications as well.