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Should AbbVie, Inc. Buy Acadia Pharmaceuticals to Help Fight Parkinson's Disease?

The healthcare sector is unquestionably going through a period of major consolidation. And with dozens of additional blockbuster drugs scheduled to lose patent protection soon, this trend will probably continue for the foreseeable future.

AbbVie (NYSE:ABBV) is one name in particular that's been aggressively pursuing major deals ahead of the patent expiration for its lead anti-inflammatory drug Humira. Specifically, the company was initially courting Irish biopharma Shire before backing out, and later cut a massive $21 billion deal for cancer drugmaker Pharmacyclics.

Given that this buyout won't entirely solve AbbVie's problems stemming from the loss of exclusivity for Humira, we're likely to see the drugmaker go after another, albeit much smaller, biopharma in the near term. Indeed, the company's management admitted in a recent investor conference call that they are considering a second acquisition.

So, this raises the question: Which small or mid-cap biopharma should AbbVie consider?

A great strategic fit
Acadia Pharmaceuticals (NASDAQ:ACAD) is developing a selective serotonin inverse agonist, Nuplazid (pimavanserin), indicated for Alzheimer's (ADP) and Parkinson's disease psychosis (PDP), as well as schizophrenia.

Source: Acadia Pharmaceuticals.

This small-molecule drug previously reported strong late-stage results for its most advanced indication, PDP, back in 2012, garnering Fast Track status with the Food and Drug Administration in the process.

Despite fairly robust results for PDP and having Fast Track status, Acadia has been unable to push the drug into a regulatory review with the FDA. While some of these delays have been due...