Don't Try to Catch This Falling Knife

Acadia Pharmaceuticals' (NASDAQ: ACAD) stock got walloped yesterday after a CNN reportsuggested that Nuplazid, the company's Parkinson's disease psychosis medication (PDP), may be tied to an increased rate of mortality among patients, and that the drug may not even be all that effective at treating hallucinations, as advertised.

My Foolish colleague Brian Feroldi provided an excellent summary of yesterday's events here.