Acadia and Biovail with New Study (NASDAQ:ACAD)

Acadia Pharmaceuticals and its partner Biovail Corporation have announced that they will conduct a third late-stage trial for pimavanserin. The news of their new collaborated study had direct impact on the shares of Acadia and Biovail and their shares jumped more than twenty points in no time. Pimavanserin is their experimental drug for psychosis related to Parkinson’s disease that had failed in the last-stage trial previous month. The reasons behind the rise of Acadia shares is that investors still believe that Acadia can perform better and come out with positive results about the experimental drug.

Analysts  believe that both Acadia and its partner, Biovail Corporation see some potential in the drug and therefore they are not giving up easily and that is encouraging the investors to invest their money on these two companies. Parkinson’s disease is a degenerative disorder of the central nervous system that impairs motor skills and speech.

Acadia and Biovail has announced that they will used the findings of the failed study along with the information from the second late-stage study and will use it effective in their third late-stage study on pimavanserin. Acadia has also announced that they have sufficient funds in cash, investment securities and collaboration payments to handle their operations till the first six months of 2011.