Connecticut-based fund Braidwell established a new position in ACADIA Pharmaceuticals (ACAD +1.85%), adding nearly 2.4 million shares, a stake valued at about $50.8 million as of September 30.
What Happened
According to a filing with the U.S. Securities and Exchange Commission dated November 14, Braidwell disclosed a new stake in ACADIA Pharmaceuticals, acquiring nearly 2.4 million shares valued at approximately $50.8 million as of September 30. The addition accounted for 2.1% of the fund’s total reportable U.S. equity assets for the quarter.
What Else to Know
Top holdings after the filing:
- NASDAQ:CAI: $221.3 million (9% of AUM)
- NASDAQ:XENE: $144.7 million (5.9% of AUM)
- NASDAQ:CGON: $132.3 million (5.4% of AUM)
- NASDAQ:NBIX: $123.6 million (5% of AUM)
- NASDAQ:KRYS: $91.9 million (3.7% of AUM)
As of Wednesday, shares were priced at $25.88, up 59% over the past year and well outperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Wednesday) | $25.88 |
| Market Capitalization | $4.4 billion |
| Revenue (TTM) | $1 billion |
| Net Income (TTM) | $261.2 million |
Company Snapshot
- ACADIA Pharmaceuticals generates revenue primarily through the commercialization of NUPLAZID for Parkinson's disease psychosis, with an advancing pipeline including late-stage candidates for Alzheimer's disease psychosis and Rett syndrome.
- The company operates a biopharmaceutical business model focused on developing, obtaining regulatory approval for, and marketing small molecule therapeutics targeting central nervous system disorders.
- Its customer base includes healthcare providers, specialty pharmacies, and institutions treating neurological and psychiatric conditions.
ACADIA Pharmaceuticals Inc. is a mid-cap biotechnology company specializing in the development and commercialization of therapies for central nervous system disorders. The company leverages a focused pipeline and established commercial infrastructure to address significant unmet needs in neurology and psychiatry. Its strategic emphasis on novel therapeutics and late-stage clinical assets positions it for continued growth in the biopharmaceutical sector.
Foolish Take
Acadia isn’t really a smooth ride—the stock is still more than 50% below its pandemic peak—but the fundamentals look sturdier than they have in years. The company just delivered double-digit revenue growth, expanding sales for both NUPLAZID and DAYBUE while more than doubling net income in the third quarter. With raised full-year guidance, a deepening late-stage pipeline, and nearly $850 million in cash on the balance sheet, Acadia has the tools to keep building momentum.
The flip side is that execution risk remains real. NUPLAZID’s long-term durability, DAYBUE’s growth curve, and the company’s ability to convert late-stage assets in Alzheimer’s and Rett syndrome into commercial wins will matter more than any single quarter. But a major biotech-focused fund stepping in now suggests there’s confidence in the trajectory—not just the story.
For long-term investors, ACADIA deserves a spot on the watchlist. If management continues hitting its targets, the recent gains could be the start of a more durable recovery rather than another temporary upswing.
Glossary
New position: The first-time purchase of a security by an investor or fund.
Reportable AUM: Assets under management that must be disclosed in regulatory filings, such as the SEC's 13F report.
13F reportable assets: Securities and assets that institutional investment managers are required to report quarterly to the SEC on Form 13F.
Stake: The ownership interest or shareholding an investor holds in a company.
Top holdings: The largest investments in a portfolio, ranked by market value.
Trailing twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Forward P/E ratio: Price-to-earnings ratio based on projected future earnings, used to assess valuation.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; a valuation metric.
Biopharmaceutical: A sector focused on developing drugs using biological and chemical processes, often for complex diseases.
Pipeline: The portfolio of drugs or products a company is developing, usually at various stages of research and approval.
Commercial infrastructure: The systems and resources a company uses to market, sell, and distribute its products.
Central nervous system disorders: Medical conditions affecting the brain and spinal cord, such as Parkinson's or Alzheimer's disease.
