Acadia drops major add-on indication for psychosis drug after pivotal miss

Acadia shed nearly $1.7 billion in market cap on Tuesday after saying it would no longer pursue the broader population of major depressive disorder patients for its psychosis drug after a Phase III miss.

Pimavanserin missed the primary endpoint in the Phase III CLARITY trial as an adjuvant therapy for MDD. The stock fell $10.73 (19%) to $44.69, leaving the company with a market cap of just under $7 billion...