ACADIA Pharmaceuticals Inc. (ACAD) Announces Q1:17 Results; Shares Dip


ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) announced its unaudited financial results for the first quarter ended March 31, 2017.

“We’re very pleased with our strong start to 2017,” said Steve Davis, ACADIA’s President and Chief Executive Officer. “The use of NUPLAZID® in Parkinson’s disease psychosis continues to expand as brand awareness among neurologists, psychiatrists, and other healthcare providers grows. We also continue to advance our ongoing clinical studies in Alzheimer’s disease agitation, schizophrenia inadequate response, schizophrenia negative symptoms, and major depressive disorder, and we look forward to moving our Alzheimer’s disease psychosis program into Phase III in the second half of 2017.”

Recent Highlights

  • Net revenue for the first quarter of 2017 of $15.3 million, an increase of 28% from the fourth quarter of 2016.
  • NUPLAZID (pimavanserin) available on Medicare formularies for the treatment of Parkinson’s disease psychosis (PD Psychosis); commercial coverage decisions grew to over 90% of commercial lives.
  • Expanded penetration into the long-term care market with 25 additional long-term care sales specialists; ACADIA currently has approximately 155 total sales specialists.
  • Continued to execute on broad clinical development program with ongoing studies in Alzheimer’s disease agitation, schizophrenia inadequate response, schizophrenia negative symptoms, and major depressive disorder.
  • Plan to advance Alzheimer’s disease psychosis (AD Psychosis) program into Phase III in second half of 2017.
  • Presented data on NUPLAZID in PD Psychosis at the American Association for Geriatric PsychiatryAnnual Meeting.
  • Appointed Michael J. Yang as Executive Vice President, Chief Commercial Officer.

Financial Results

  • Revenue – ACADIA reported NUPLAZID net product sales of $15.3 million for the three months ended March 31, 2017. NUPLAZID was first made available for prescription starting in May 2016 and there were no similar net product sales for the comparable period of 2016. ACADIA reports product sales when its specialty pharmacy partners dispense NUPLAZID to a patient based on the fulfillment of a prescription or its specialty distributor partners sell NUPLAZID to a government facility, long-term care pharmacy or in-patient hospital pharmacy. As of March 31, 2017, the company had $4.1 million of deferred product revenue, net of distribution fees, for product it had shipped to its distribution partners that had not yet sold-through the distribution channel. At December 31, 2016, the company had $2.6 million of deferred product revenue, net of distribution fees.
  • Research and Development – Research and development expenses increased to $35.4 million for the three months ended March 31, 2017from $22.8 million for the comparable period of 2016. This increase was primarily due to increased clinical costs related to studies the company initiated in the fourth quarter of 2016 for indications other than PD Psychosis. The company also incurred additional personnel and related costs associated with its expanded research and development organization during the three months ended March 31, 2017 compared to the same period in 2016.
  • Selling, General and Administrative – Selling, general and administrative expenses increased to $65.7 million for the three months ended March 31, 2017 from $27.5 million for the comparable period of 2016. This increase was primarily due to costs incurred to support ACADIA’s commercial activities for NUPLAZID and costs related to its specialty sales force that did not exist for the comparable period of 2016 prior to the launch of NUPLAZID.
  • Net Loss – For the three months ended March 31, 2017, ACADIA reported a net loss of $87.8 million, or $0.72 per common share, compared to a net loss of $49.8 million, or $0.45 per common share, for the comparable period of 2016. The net loss for the three months ended March 31, 2017 included $15.6 million of non-cash stock-based compensation expense compared to $12.0 million for the comparable period of 2016.
  • Cash and Investments – At March 31, 2017, ACADIA’s cash, cash equivalents, and investment securities totaled $469.5 million, compared to $529.0 million at December 31, 2016.

Shares of ACADIA Pharmaceuticals are down nearly 4% to $31.00 in after-hours trading Tuesday. ACAD has a 1-year high of $42.49 and a 1-year low of $20.68. The stock’s 50-day moving average is $33.70 and its 200-day moving average is $31.73.

ACADIA Pharmaceuticals, Inc. engages in the research, development and manufacture of pharmaceutical products. It focuses on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders.