Culper Research discloses short position in Acadia Pharma (updated)

Acadia Pharmaceuticals

15/02/2024 17:26

(Adds details from the report in paragraph 4 and 8, updates
shares in paragraph 1)
       Feb 15 (Reuters) - Culper Research has taken a short
position on Acadia Pharmaceuticals'  ACAD.O  stock, it said on
Thursday, sending the drugmaker's shares down as much as 8%.
    Acadia's  drug, trofinetide, to treat Rett syndrome, a
genetic brain disorder, was launched in the U.S. last year under
the brand name Daybue.
    "Acadia has misrepresented Daybue's safety profile, and in
turn, patent retention rates," Culper Research alleged in its
report. 
    "The company now faces a wall of discontinuations due to
insurance reauthorization requirements. Numerous insurance plans
we reviewed require tangible proof of improvement on the drug,"
the report said.
    Reuters could not immediately verify the short seller's
allegations. 
    San Diego California-based Acadia, which licensed 
trofinetide from Australian drugmaker Neuron Pharmaceuticals
 NEU.AX , did not immediately respond to a request for comment.
    The approval had allowed use of the drug in adult and
pediatric patients two years of age and older,  with a label
warning of diarrhea and weight loss.
    Culper the drug "will continue to decline over time as
patients discontinue" treatment and the company "runs out of new
patients to fill the gap" and estimates revenue from Daybue will
be $316 million in 2024. 
    Analysts were expecting revenue of about $379 million for
the drug in 2024, as per LSEG data. 
    Acadia has an antipsychotic drug sold under the brand name
Nuplazid approved for patients with a type of Parkinson's
disease. 
    The company's shares clawed back some lost ground and were
last down 2.1%.
    Short sellers make money by betting that the price of a
security (such as a stock) will decrease.
    

 (Reporting by Pratik Jain in Bengaluru; Editing by Shilpi
Majumdar)
 ((Pratik.Jain@thomsonreuters.com;))