UBS has increased its price target for ACADIA Pharmaceuticals Inc. to $49 from $45, while reiterating a 'Buy' rating for the stock. This new target is higher than the previous analyst high of $45. The bank's optimism stems from an increased probability of success for remlifanserin, a drug being tested for Alzheimer's disease psychosis, with UBS citing the next-generation molecule and a well-designed trial.
As a result of this increased confidence, UBS has raised its risk-adjusted peak sales estimates for the drug to $1.6 billion, a significant increase from the previous estimate of $1.3 billion and well above the consensus estimate of about $0.9 billion. ACADIA is expected to release the first data from the Alzheimer's disease psychosis trial for remlifanserin between September and October of this year.