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ACADIA Pharmaceuticals Inc. (ACAD) Stock Analysis

Healthcare

ACADIA Pharmaceuticals Inc.

$21.26

+$0.16 (+0.76%)

Last Updated: May 26, 2026

Price History

Analysis

Company Overview

ACADIA Pharmaceuticals Inc. operates as a biopharmaceutical entity dedicated to the development and commercialization of therapeutic medicines specifically targeting neurological conditions and rare diseases within the North American market. The company's primary commercial offering is NUPLAZID (pimavanserin), a selective serotonin inverse agonist/antagonist designed for the treatment of hallucinations, reflecting its core focus on specialized neurological pharmacology. This enterprise functions within the Healthcare sector and the Biotechnology industry, positioning it among peers that rely on scientific innovation to address complex medical needs rather than traditional commodity manufacturing. With a market capitalization of $3.53B and annual revenue of $1.07B, ACADIA demonstrates the scale of a significant public biotech player, employing a workforce of 796 individuals to support its R&D and commercial operations. These valuation and revenue figures indicate that the company holds a substantial position in the market, possessing the financial resources and operational footprint necessary to sustain long-term development pipelines and compete effectively in the specialized biopharmaceutical landscape.

Financial Health

The company reported revenue of $1.07B for the trailing twelve months, generating net income of $391.00M and an EBITDA of $116.57M. The significant gap between the $1.07B revenue and the $391.00M net income reveals a cost structure where operating expenses, while present, are sufficiently managed to maintain a high conversion of revenue into profit, though the EBITDA figure suggests a specific level of operational cash generation before interest and taxes. Free cash flow stands at $-54,821,124, indicating a temporary cash outflow that implies the company is investing heavily in growth initiatives or working capital requirements that exceed its operating cash generation at this specific period. Despite the negative free cash flow, the balance sheet remains robust with $819.69M in cash and equivalents against a total debt load of $52.19M, suggesting a highly conservative financial posture with ample liquidity to cover obligations. The debt-to-equity ratio of 4.25 highlights a capital structure weighted toward equity, yet the sheer volume of cash relative to debt mitigates the risk associated with this leverage metric. Short-term liquidity is exceptionally strong, evidenced by a current ratio of 3.83, which indicates the company possesses more than three times the current assets necessary to settle its short-term liabilities without distress. Return on Equity stands at 39.9% while Return on Assets is 4.8%, metrics that collectively reveal management's high effectiveness in generating shareholder value relative to equity invested and utilizing the total asset base to produce earnings.

Valuation Assessment

The trailing twelve-month P/E ratio is 9.01, while the forward P/E is projected at 22.91, a divergence that implies the market expects earnings growth to accelerate significantly in the coming periods to justify the higher multiple. The price-to-book ratio is 2.87, indicating that the stock trades at a substantial premium over its book value, which often reflects the intangible value of intellectual property and future growth potential inherent in biotechnology firms. Alternative valuation metrics such as the price-to-sales ratio of 3.30 and an EV/EBITDA of 23.72 suggest that the market values the company based on top-line growth and enterprise value relative to earnings power, rather than solely on historical profitability. The stock has exhibited volatility within a 52-week trading range bounded by a high of $28.35 and a low of $13.40, with the current price point situated dynamically between these extremes to reflect shifting market sentiment. The beta value of 0.81 indicates that the stock price tends to move with less volatility than the broader market, suggesting a relative stability compared to high-growth peers that might exhibit beta values significantly above one.

Growth & Income

Revenue growth for the year-over-year period is 9.4%, while earnings growth is recorded at 86.2%, demonstrating that profitability is expanding at a rate much faster than top-line sales, which often signals improving pricing power, cost efficiencies, or a favorable product mix. As a non-dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, the company retains all of its net income to reinvest into research, development, and commercial expansion rather than distributing cash returns to shareholders. This reinvestment strategy is typical for biotechnology companies in the growth phase, where capital allocation toward pipeline advancement is prioritized over immediate income generation for investors. The overall profile combines double-digit earnings expansion with a conservative debt structure and a low beta, presenting a growth-oriented income profile that relies on future earnings realization rather than current dividend income.

Peer Comparison

ACADIA Pharmaceuticals Inc. (ACAD) operates in the Biotechnology industry. Here is how it compares to its closest peers by market capitalization:

Company Ticker Market Cap P/E Ratio
ACADIA Pharmaceuticals Inc. ACAD $3.64B 9.6
Vertex Pharmaceuticals Incorporated VRTX $110.64B 25.8
Regeneron Pharmaceuticals, Inc. REGN $66.98B 15.6
argenx SE ARGX $50.52B 36.0

The Biotechnology industry average P/E ratio is 53.8x. ACADIA Pharmaceuticals Inc. trades at a P/E of 9.6.

This analysis is AI-generated for informational purposes only and should not be considered financial advice. Data may be delayed or inaccurate. Always do your own research and consult a qualified financial advisor before making investment decisions.

About ACADIA Pharmaceuticals Inc.

ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of medicines for neurological and rare disease in North America. The company offers NUPLAZID (pimavanserin), a selective serotonin inverse agonist/antagonist for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis; and DAYBUE, a novel synthetic analog of the amino-terminal tripeptide of insulin-like growth factor 1 to treat the symptoms of Rett syndrome by reducing neuroinflammation and supporting synaptic function. It also develops remlifanserin, which is in phase 2 clinical trial for the treatment of alzheimer's disease psychosis and lewy body dementia psychosis; ACP-211, which is in phase 2 clinical trial to treat major depressive disorder; ACP-711, which is in phase I clinical trial for the treatment of essential tremor; and ACP-271, a GPR88 agonist for the treatment of tardive dyskinesia and huntington's disease and is in phase I trial. In addition, the company develops ACP-2591, a cGP analogue which is in Phase 1 clinical trial to treat rett syndrome and fragile X syndrome; and STOKE Antisense Oligonucleotide Program, which is in discovery program for SYNGAP1 syndrome. It has a license agreement with Neuren Pharmaceuticals Limited to trofinetide for Rett syndrome and other indications; and a license and collaboration agreement with Stoke Therapeutics, Inc. to discover, develop, and commercialize novel RNA-based medicines for the potential treatment of severe and rare genetic neurodevelopmental diseases of the CNS. The company was formerly known as Receptor Technologies, Inc. and changed its name ACADIA Pharmaceuticals Inc. in 1997. ACADIA Pharmaceuticals Inc. was incorporated in 1993 and is headquartered in San Diego, California.

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Key Statistics

Market Cap
$3.64B
P/E Ratio
9.62
52-Week High
$28.35
52-Week Low
$19.69
Avg Volume
1.85M
Beta
0.86

Data provided by Yahoo Finance via yfinance. Updated daily.

Company Info

Exchange
NASDAQ
Country
United States
Employees
796