Acadia Stock Up 59% in a Year — Is a $51 Million New Stake a Bet on a Bigger Rebound?

Connecticut-based fund Braidwell established a new position in ACADIA Pharmaceuticals (NASDAQ:ACAD), adding nearly 2.4 million shares, a stake valued at about $50.8 million as of September 30.

What Happened

According to a filing with the U.S. Securities and Exchange Commission dated November 14, Braidwell disclosed a new stake in ACADIA Pharmaceuticals, acquiring nearly 2.4 million shares valued at approximately $50.8 million as of September 30. The addition accounted for 2.1% of the fund’s total reportable U.S. equity assets for the quarter.

What Else to Know

Top holdings after the filing:

• NASDAQ:CAI: $221.3 million (9% of AUM)
• NASDAQ:XENE: $144.7 million (5.9% of AUM)
• NASDAQ:CGON: $132.3 million (5.4% of AUM)
• NASDAQ:NBIX: $123.6 million (5% of AUM)
• NASDAQ:KRYS: $91.9 million (3.7% of AUM)

As of Wednesday, shares were priced at $25.88, up 59% over the past year and well outperforming the S&P 500, which is up 13% in the same period.

Company Overview

Company Snapshot

• ACADIA Pharmaceuticals generates revenue primarily through the commercialization of NUPLAZID for Parkinson's disease psychosis, with an advancing pipeline including late-stage candidates for Alzheimer's disease psychosis and Rett syndrome.
• The company operates a biopharmaceutical business model focused on developing, obtaining regulatory approval for, and marketing small molecule therapeutics targeting central nervous system disorders.
• Its customer base includes healthcare providers, specialty pharmacies, and institutions treating neurological and psychiatric conditions.

ACADIA Pharmaceuticals Inc. is a mid-cap biotechnology company specializing in the development and commercialization of therapies for central nervous system disorders. The company leverages a focused pipeline and established commercial infrastructure to address significant unmet needs in neurology and psychiatry. Its strategic emphasis on novel therapeutics and late-stage clinical assets positions it for continued growth in the biopharmaceutical sector.

Foolish Take

Acadia isn’t really a smooth ride—the stock is still more than 50% below its pandemic peak—but the fundamentals look sturdier than they have in years. The company just delivered double-digit revenue growth, expanding sales for both NUPLAZID and DAYBUE while more than doubling net income in the third quarter. With raised full-year guidance, a deepening late-stage pipeline, and nearly $850 million in cash on the balance sheet, Acadia has the tools to keep building momentum.

The flip side is that execution risk remains real. NUPLAZID’s long-term durability, DAYBUE’s growth curve, and the company’s ability to convert late-stage assets in Alzheimer’s and Rett syndrome into commercial wins will matter more than any single quarter. But a major biotech-focused fund stepping in now suggests there’s confidence in the trajectory—not just the story.

For long-term investors, ACADIA deserves a spot on the watchlist. If management continues hitting its targets, the recent gains could be the start of a more durable recovery rather than another temporary upswing.

Glossary

New position: The first-time purchase of a security by an investor or fund.
Reportable AUM: Assets under management that must be disclosed in regulatory filings, such as the SEC's 13F report.
13F reportable assets: Securities and assets that institutional investment managers are required to report quarterly to the SEC on Form 13F.
Stake: The ownership interest or shareholding an investor holds in a company.
Top holdings: The largest investments in a portfolio, ranked by market value.
Trailing twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Forward P/E ratio: Price-to-earnings ratio based on projected future earnings, used to assess valuation.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; a valuation metric.
Biopharmaceutical: A sector focused on developing drugs using biological and chemical processes, often for complex diseases.
Pipeline: The portfolio of drugs or products a company is developing, usually at various stages of research and approval.
Commercial infrastructure: The systems and resources a company uses to market, sell, and distribute its products.
Central nervous system disorders: Medical conditions affecting the brain and spinal cord, such as Parkinson's or Alzheimer's disease.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Krystal Biotech. The Motley Fool recommends Neurocrine Biosciences. The Motley Fool has a disclosure policy.