UPDATE: MLV & Co. Downgrades ACADIA Pharmaceuticals on Valuation

In a report published Wednesday, MLV & Co. analyst George B. Zavoico downgraded ACADIA Pharmaceuticals (NASDAQ: ACAD) from Buy to Hold, but raised the price target from $18.00 to $20.00.

In the report, MLV & Co. noted, “2Q:13 was a transformational quarter for Acadia. On April 11, the FDA agreed that results of multiple clinical trials of pimavanserin for the treatment of Parkinson's disease psychosis (PDP) were sufficient to support a NDA filing without a confirmatory Phase III trial. On this news Acadia successfully raised $107.9 million in net proceeds from a public equity offering in May without warrants or a discount, providing another catalyst for Acadia's share price. With a stronger balance sheet and an increase in pre-commercialization activities that we think will ensure a more successful product launch and more rapid market penetration, we are raising our 12-month price target from $18 to $20. However, we are also lowering our recommendation from a BUY to HOLD as we believe Acadia has reached its fair value at this time.”

ACADIA Pharmaceuticals closed on Tuesday at $20.68.