Why Acadia Pharmaceuticals Stock Is Crashing Today

Shares of Acadia Pharmaceuticals (NASDAQ: ACAD) were crashing 35.4% as of 11 a.m. ET on Tuesday. The steep decline came after a Food and Drug Administration (FDA) advisory committee voted 9-3 against recommending approval of pimavanserin in treating Alzheimer's disease psychosis.

This vote was reported on June 17. But the trading of Acadia stock was halted that day because of the FDA advisory committee's deliberations. Trading of the biotech stock didn't resume until today since the stock market was closed on Monday for the federal Juneteenth holiday.

The FDA's Psychopharmacologic Drugs Advisory Committee (PDAC) determined that the data for pimavanserin didn't sufficiently demonstrate that it was effective in treating hallucinations and delusions experienced by patients with Alzheimer's disease psychosis. CEO Steve Davis said that the company was "disappointed" with the advisory committee's vote.

Source Fool.com