Acadia Pharmaceuticals wins FDA approval and sets its drug price

The FDA has approved Nuplazid, Acadia atypical anti-psychotic drug for treating Parkinson's Disease Psychosis. Nuplazid is set for commercial launch in the US this June with a price tag of $1,950 per month.

In light of these recent developments I have updated my Acadia valuation. My new price target for ACAD is $48-$63 per share which presents over 100% upside.

I used the Times Revenue Multiple Valuation method.
Below is my model with assumptions:

I wrote about ACAD and its drug candidate back in April 2015.

I continue to view ACAD as an excellent long-term investment opportunity.



Disclosure - ACAD is a core holding of my Marketocracy Fund. I do not short stocks.