July 27, 2009 / 6:46 PM / 9 years ago

UPDATE 1-Acadia shares extend gains ahead of trial data

July 27 (Reuters) - Shares of Acadia Pharmaceuticals Inc (ACAD.O) soared as much as 54 percent Monday, extending a rally that began Friday, on continued speculation of sooner-than-expected results from a late-stage trial of its drug to treat psychosis related to Parkinson’s disease.

JMP Securities analyst Charles Duncan, however, said that along with the upcoming Parkinson’s data, investors believe that the company could be acquired by another larger pharmaceutical or biotech company, including partner Biovail.

Acadia is co-developing pimavanserin, which is currently being studied in two late-stage trials, with a unit of Biovail Corp BVF.TO BVF.N, for the treatment of Parkinson’s disease psychosis (PDP).

“The results are due this quarter but we believe the institutional trading in the shares and its options indicate the results will be out very soon,” a founder of Web information site optionMonster.com, Jon Najarian, said.

Acadia declined to comment on the trading or the related speculation.

Acadia shares were up $1.18 at $4.59 in heavy trading Monday on Nasdaq, after hitting a new year-high of $5.24 earlier in the session. They had risen 31 percent to $3.41 on Friday.

Option volume in Acadia was also heavy with a strong trading bias in the stock’s call options, which grant investors the right to buy the underlying shares at a fixed price within a specified time period.

During the first half of Monday’s session, 5,562 calls and 1,978 puts traded, on combined daily volume that was four times the norm, according to option analytics firm Trade Alert. (Reporting by Doris Frankel in Chicago and Anand Basu in Bangalore; Editing by Anthony Kurian)

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