Acadia shares tumble 5% after Southern Investigative Reporting Foundation expose

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Acadia shares tumble 5% after investigative report raises concerns about its sole drug

Acadia Pharmaceuticals Inc. shares tumbled 5% in heavy Monday midday trade after a report by the Southern Investigative Reporting Foundation’s Roddy Boyd raised major concerns about the benefits and risks of the company’s sole drug, Nuplazid, as well as Acadia’s sales tactics. The report, which was published Monday morning and titled “Acadia Pharmaceuticals: This Is Not a Pharmaceuticals Company,” found that the company used regulatory loopholes to get Nuplazid — an anti-psychotic for Parkinson’s disease — approved, which allegedly masked issues with how safe the drug is and how well it works. The drug has been heavily marketed for use in patients with dementia in long-term care facilities. Though there is a warning on the drug about safety issues with that population, the most safety issues, or adverse events, with the drug nevertheless occurred within that group, according to the report. The report also questions the company’s sales tactics, describing them as: “In a word, Acadia didn’t just open up its corporate wallet for doctors: It pointed a hose and sprayed cash at them.” Another company mentioned unfavorably in the report, Otsuka Holdings Co.’s Avanir Pharmaceuticals , had shares decline 3.7%. Acadia shares have risen nearly 3% over the last three months, compared with a 6.3% rise in the S&P 500 and a 3.1% rise in the Dow Jones Industrial Average .

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