ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) announced its unaudited financial results for the second quarter ended June 30, 2017.
“Our commercial efforts continue to drive strong financial performance with solid market uptake for NUPLAZID in patients with Parkinson’s disease psychosis,” said Steve Davis, ACADIA’s President and Chief Executive Officer. “Following positive data from our Phase II study in Alzheimer’s disease psychosis and recently completed End-of-Phase II meeting with the FDA, we are excited to start our Phase III program in the next couple of months.”
During the second quarter of 2017, ACADIA generated $30.5 million of net product sales of NUPLAZID, which includes the one-time recognition of $3.6 million associated with the transition to the sell-in revenue recognition method of accounting from the sell-through method.
Starting with the second quarter of 2017, based on its determination it had sufficient volume of activity to reasonably estimate its allowances for rebates and chargebacks, ACADIA began to recognize revenue at the point of sale to its specialty pharmacy and specialty distributor partners, commonly referred to as the “sell-in” revenue recognition method. Previously, ACADIA had deferred the recognition of revenue until it obtained evidence that its specialty partners had dispensed the product to a patient or had sold the product to a government facility, long-term care pharmacy or in-patient hospital pharmacy. The $3.6 million one-time adjustment was deferred revenue as of March 31, 2017 and represents product held by specialty pharmacies and specialty distributors at such date.
For comparison purposes, the following table presents NUPLAZID’s pro forma quarterly net product sales under the sell-in method, if ACADIA had been able to reasonably estimate its allowances for rebates and chargebacks from the time of launch in May 2016.
- Conducted End-of-Phase II meeting with the FDA on the Alzheimer’s disease psychosis (AD Psychosis) program.
- Abstract of Phase II data with pimavanserin for AD Psychosis was accepted for presentation at the Clinical Trials on Alzheimer’s Disease meeting in early November 2017.
- Expanded penetration into the long-term care market with the deployment of an additional 25 long-term care specialists; ACADIA currently has approximately 155 total sales specialists.
- NUPLAZID nominated for the 11th Annual Prix Galien Award for Best Pharmaceutical Agent.
- ACADIA named to Forbes Magazine’s List of World’s Most Innovative Growth Companies.
- Continue to advance broad clinical development program with ongoing studies in Alzheimer’s disease agitation, schizophrenia inadequate response, schizophrenia negative symptoms, and major depressive disorder.
- Revenue – Net product sales of NUPLAZID, which was first made available for prescription starting in May 2016, were $30.5 million for the three months ended June 30, 2017 compared to $0.1 million for the three months ended June 30, 2016. For the six months ended June 30, 2017 and 2016, ACADIA reported NUPLAZID net product sales of $45.8 million and $0.1 million, respectively.
- Research and Development – Research and development expenses for the three months ended June 30, 2017 were $34.2 million, compared to $20.5 million for the same period of 2016. For the six months ended June 30, 2017 and 2016, research and development expenses were $69.6 million and $43.3 million, respectively. The increase in research and development expenses during the 2017 periods as compared to 2016 was primarily due to increased clinical costs related to the schizophrenia and depression studies ACADIA initiated in the fourth quarter of 2016. The company also incurred additional personnel and related costs associated with its expanded research and development organization during 2017 as compared to 2016.
- Selling, General and Administrative – Selling, general and administrative expenses for the three months ended June 30, 2017 were $61.5 million, compared to $50.8 million for the same period of 2016. For the six months ended June 30, 2017 and 2016, selling, general and administrative expenses were $127.3 million and $78.3 million, respectively. The increase in selling, general and administrative expenses during the 2017 periods as compared to 2016 was primarily due to costs incurred to support ACADIA’s commercial activities for NUPLAZID.
- Net Loss – For the three months ended June 30, 2017, ACADIA reported a net loss of $67.4 million, or $0.55 per common share, compared to a net loss of $71.3 million, or $0.63 per common share, for the same period in 2016. The net losses for the three months ended June 30, 2017 and 2016 included $18.2 million and $13.9 million, respectively, of non-cash stock-based compensation expense. For the six months ended June 30, 2017, ACADIA reported a net loss of $155.3 million, or $1.27 per common share, compared to a net loss of $121.1 million, or $1.08 per common share, for the same period in 2016. The net losses for the six months ended June 30, 2017 and 2016 included $33.8 million and $25.8 million, respectively, of non-cash stock-based compensation expense.
- Cash and Investments – At June 30, 2017, ACADIA’s cash, cash equivalents, and investment securities totaled $417.3 million, compared to $529.0 million at December 31, 2016.
- 2017 Financial Guidance – ACADIA expects that full-year NUPLAZID net sales for 2017 will be between $105 million and $115 million.
Shares of ACADIA Pharmaceuticals are up nearly 12% to $33.00 in after hours trading Tuesday. ACAD has a 1-year high of $40.83 and a 1-year low of $20.68. The stock’s 50-day moving average is $29.06 and its 200-day moving average is $32.03.
On the ratings front, ACAD has been the subject of a number of recent research reports. In a report issued on July 27, Jefferies analyst Michael Yee reiterated a Buy rating on ACAD, with a price target of $47, which represents a potential upside of 54% from where the stock is currently trading. On June 21, Piper Jaffray’s David Amsellem reiterated a Buy rating on the stock and has a price target of $50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Yee and David Amsellem have a yearly average return of 6.8% and a loss of -1.2% respectively. Yee has a success rate of 58% and is ranked #645 out of 4628 analysts, while Amsellem has a success rate of 44% and is ranked #3829.
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.