elsevier conference - partnering activities?, page-3

Over the next two days there will be a forced comparison between Prana's PBT2 with Acadia Pharmaceutical's "blockbuster" potential drug, Primansaverin for Parkinson's Psychosis - a symptomatic drug for which they have just announced a study to approve it for AD-related psychosis.
They are both presenting at Elsevier.

Acadia now has over a $2.07 Billion market cap. They have over twice as many shares outstanding. They made a $2 to $8 move around last December. Around May they made an $8 to $12 advance, and then $12 to $18 by June timeframe, and have since traded as high as in the $29s on the potential of their symptomatic drug, but currently in the $22 trading range. (for prana w/under half the shares outstanding we could doube any dollar-wise move)

Prana has their disease-modifying drug already with primary approval emphasis on AD, with HD as an early-to-market effort at the request of Huntington study group. And Prana also has their PBT434, disease-modifying drug entering first-in-human trials by the end of 2014 for Parkinson's.

So the comparison will surely be made with these two jockeying for position in the Parkinson's and AD space, and it will duly be noted that Prana is disease-modifying, and will lend to the obvious question being asked - why is Prana's market cap lower than Acadia's?

You can roughly double or slightly more any dollar-wise move made by Acadia adjusting for the shares outstanding. When Prana is approved it would threaten to eventually cannibalize the market for Acadia's drug, but Acadia will certainly enjoy a long prosperous ride before such concerns would impact them at all.

But when the potential of Prana's drug is rightly weighed from a market-cap perspective. Acadia is considered to be fairly valued (for now - even higher within a year), and it will surely come to light quickly how undervalued Prana Biotechnology is. I think we stand a good shot and finally getting some serious value recognition in the coming days, weeks, and months.