Acadia Stock Up 23% After FDA Finds Nuplazid Has No New Safety Risks

(RTTNews) - Shares of Acadia Pharmaceuticals Inc. (ACAD) are currently up 23% on Thursday in response to an update from U.S. Food and Drug Administration that its drug, Nuplazid, does not have any new safety risks.

The FDA completed a review of all post marketing reports of deaths and serious adverse events reported with the use of Nuplazid (pimavanserin). Based on an analysis of all available data, FDA said it did not identify any new or unexpected safety findings with Nuplazid.

FDA said its conclusion remains unchanged that the drug's benefits outweigh its risks for patients with hallucinations and delusions of Parkinson's disease psychosis.

Nuplazid is an antipsychotic medication used for the hallucinations and delusions connected to Parkinson's disease psychosis.

In April, shares of Acadia had slumped 19 percent on the news that the FDA is re-examining the safety of Nuplazid, which was approved by the agency in 2016. Concerns were raised that the drug wasn't helping and might even be hurting patients.

Nuplazid and other antipsychotics have a Boxed Warning regarding the increased risk of death in elderly patients with dementia-related psychosis associated with the use of these drugs.

Nuplazid generated about $125 million last year in net sales, according to Acadia's financial filings.