Baker bros and Acadia., page-13

Not to be rude, but I doubt any takeover speculation of ACADIA is a key driver of the current rerate. ACADIA had been mired in a year-long downtrend initially stoked by safety concerns and the class action added to the bearishness.

FDA investigated and delivered a favourable analysis (stating the it found no new safety risks associated with NUPLAZID),
then wham, short squeeze and downtrend broken.

It is entirely possible it is back on as a takeover target, but it still has ground to cover and gaps to close in remediation for the savage sell off experienced in response to the prospect that their only drug may be pulled from the shelves, a risk which has now been removed. Also a risk removed from NEU.

Anyway, nice to see selling drying up. Issue is if this is not net with buy side demandd NEU may still trend downwards. If ACADIA is such a supportive partner, I would now like to see ACADIA lodge an increase in substantial holding or a U.S. (given that is where management has chosen to focus their attention) or as an ASX listed company even an Australian (why management did not secure top tier pr, do a conference call for funds and an Australian roadshow is beyond me) insto file a 603 notice. Management should not be resting until they achieve the objective of securing buyers.

Very compelling late stage bio, with plenty of upside but hard to herald management as high perfomers at these levels given the 0% or negative 3-5-yr return they have delivered to long term holders. If they do not appreciate the pressure I hope they are experiencing (well deserved imo) then perhaps they should look to take the company private.

Cheers,

5x8's