ACAD1ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) announced its unaudited financial results for the third quarter ended September 30, 2016.

“We are very pleased with the launch and are gratified by the positive feedback we have received from physicians, patients, and caregivers on NUPLAZID (pimavanserin),” said Steve Davis, ACADIA’s President and Chief Executive Officer. “We saw solid month-over-month prescription growth, reported increased payor coverage, and continued to expand awareness of NUPLAZID among movement disorder specialists, neurologists, and psychiatrists.”

“In addition, we continue to expand our clinical program with pimavanserin. We recently announced the initiation of our SERENE study for the treatment of Alzheimer’s disease agitation and our ENHANCE-1 study for adjunctive treatment of schizophrenia in patients who have an inadequate response to current antipsychotic treatment. These studies, together with additional studies we will commence later this year, underscore our commitment to improving the lives of patients with CNS disorders.”

Recent Highlights

  • U.S. launch of NUPLAZID commenced May 31, 2016. NUPLAZID is the first and only drug approved by the FDA for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.
  • NUPLAZID now on Medicare formularies; coverage of NUPLAZID by commercial insurance plans continues to grow.
  • In October 2016, announced the initiation of the SERENE study, a Phase II study with pimavanserin for patients with Alzheimer’s disease agitation.
  • In November 2016, announced the initiation of ENHANCE-1, a Phase III study with pimavanserin for adjunctive treatment for patients with schizophrenia who are experiencing inadequate response to their current antipsychotic therapy.
  • Completed enrollment of our Phase II study exploring the utility of pimavanserin for the treatment of Alzheimer’s disease psychosis. Announcement of top-line results from the study expected by the end of 2016.
  • Presented multiple scientific posters and hosted booth exhibits for healthcare providers and disease education at the World Parkinson Congress.
  • Sponsored the National Parkinson’s Foundation Caregiver Summit.
  • Raised approximately $215.9 million in a common stock offering in August 2016.

Financial Results

Revenue

ACADIA reported net product sales of $5.3 million for the three months ended September 30, 2016. No similar net product sales were reported for the comparable period of 2015. NUPLAZID was made available for prescription starting May 31, 2016. Through ACADIA’s NUPLAZIDconnect™ site, upon initiation of therapy, physicians are able to prescribe patients a 30-day free trial of NUPLAZID for which no revenue is recognized.

Research and Development

Research and development expenses increased to $25.8 million for the three months ended September 30, 2016 from $18.7 million for the comparable period of 2015. This increase was primarily due to increased clinical costs related to the development of pimavanserin in indications other than Parkinson’s disease psychosis and an increase in personnel and related costs associated with ACADIA’s expanded research and development organization.

Selling, General and Administrative

Selling, general and administrative expenses increased to $50.5 million for the three months endedSeptember 30, 2016 from $20.3 million for the comparable period of 2015. This increase was primarily due to costs related to the hiring of our specialty sales force in April 2016 and costs incurred to support our commercial activities for NUPLAZID.

Net Loss

For the three and nine months ended September 30, 2016, ACADIA reported a net loss of $71.6 million and$192.7 million, or $0.61 and $1.69 per common share, respectively, compared to a net loss of $38.9 millionand $118.7 million, or $0.39 and $1.18 per common share, for the comparable periods of 2015, respectively. The net losses for the three and nine months ended September 30, 2016 included $14.0 million and $39.8 million, respectively, of non-cash stock-based compensation expense compared to $9.3 million and $31.3 million for the comparable periods of 2015, respectively.

Cash and Investments

At September 30, 2016, ACADIA’s cash, cash equivalents and investment securities totaled $588.9 million, compared to $215.1 million at December 31, 2015. (Original Source)

Shares of ACADIA Pharmaceuticals are up nearly 10% to $25.20 in after-hours trading. ACAD has a 1-year high of $42.49 and a 1-year low of $16.64. The stock’s 50-day moving average is $29.90 and its 200-day moving average is $33.11.

On the ratings front, ACAD stock has been the subject of a number of recent research reports. In a report issued on October 24, Needham analyst Alan Carr reiterated a Buy rating on ACAD, with a price target of $49, which implies an upside of 119% from current levels. Separately, on October 19, Roth Capital’s Michael Higgins initiated coverage with a Hold rating on the stock and has a price target of $25.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alan Carr and Michael Higgins have a yearly average return of 2.1% and a loss of 20.4% respectively. Carr has a success rate of 38% and is ranked #976 out of 4162 analysts, while Higgins has a success rate of 24% and is ranked #3963.

Overall, 2 research analysts have assigned a Hold rating and 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $49.00 which is 119% above where the stock opened today.

ACADIA Pharmaceuticals, Inc. engages in the research, development, and manufacture of pharmaceutical products. It caters to patients with central nervous system disorders such as Parkinson’s disease, Alzheimer’s disease, Schizophrenia, chronic pain, and Glaucoma. Its portfolio consists of Nuplazid, Pimavanserin, Adrenergic, and Muscarinic.