ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system (CNS) disorders, today announced its unaudited financial results for the second quarter ended June 30, 2016.
“The second quarter of 2016 was highlighted by transformative events for ACADIA, including the FDAapproval and recent commercial launch of NUPLAZID™,” said Steve Davis, ACADIA’s President and Chief Executive Officer. “We are executing on our plans to bring NUPLAZID to patients in need – our sales specialists have been trained and deployed; our patient and physician support system, NUPLAZIDconnect™, became operational at approval; we are expanding awareness of NUPLAZID among healthcare professionals through a number of initiatives including speaker programs, media and digital campaigns, and symposia at major medical meetings; and we are working with payors to make NUPLAZID available to eligible patients.”
- NUPLAZID (pimavanserin) approved by the U.S. Food and Drug Administration (FDA) on April 29, 2016for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.
- NUPLAZID (pimavanserin) made available for prescription on May 31, 2016 with physicians able to prescribe patients a 30-day free trial.
- Approximately 135 seasoned sales specialists were onboarded, trained, and deployed at launch. They have an average of over eight years of CNS sales experience and 15 years in the pharmaceutical industry.
- Enrollment completed in a 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.
- Executing on plans to initiate a Phase II study with pimavanserin in Alzheimer’s disease agitation in the second half of 2016.
ACADIA reported net product sales of $97,000 for the three months ended June 30, 2016. No similar net product sales were reported for the comparable period of 2015. NUPLAZID was made available for prescription on May 31, 2016. Through ACADIA’s NUPLAZIDconnect site, physicians are able to prescribe patients a 30-day free trial of NUPLAZID upon initiation of therapy, for which no revenue is recognized.
Research and Development
Research and development expenses increased to $20.5 million for the three months ended June 30, 2016from $18.4 million for the comparable period of 2015. This increase was primarily due to increased personnel and related costs associated with ACADIA’s expanded research and development organization, and increased clinical costs related to the development of pimavanserin in indications other than Parkinson’s disease psychosis. These increases were partially offset by decreased manufacturing development costs.
Selling, General and Administrative
Selling, general and administrative expenses increased to $50.8 million for the three months ended June 30, 2016 from $21.1 million for the comparable period of 2015. This increase was primarily due to preparations for, and support of, the launch of NUPLAZID, and the hiring of our specialty sales force in April 2016, as well as additional medical education programs.
For the three and six months ended June 30, 2016, ACADIA reported a net loss of $71.3 million and $121.1 million, or $0.63 and $1.08 per common share, respectively, compared to a net loss of $39.4 million and$79.8 million, or $0.39 and $0.80 per common share, for the comparable periods of 2015, respectively. The net losses for the three and six months ended June 30, 2016 included $13.9 million and $25.8 million, respectively, of non-cash stock-based compensation expense compared to $7.5 million and $22.0 million for the comparable periods of 2015, respectively.
Cash and Investments
At June 30, 2016, ACADIA’s cash, cash equivalents and investment securities totaled $412.6 million, compared to $215.1 million at December 31, 2015. (Original Source)
Shares of ACADIA Pharmaceuticals are down nearly 2% to $35.65 in after-hours trading. ACAD has a 1-year high of $47.96 and a 1-year low of $16.64. The stock’s 50-day moving average is $34.74 and its 200-day moving average is $28.97.
On the ratings front, ACAD has been the subject of a number of recent research reports. In a report issued on July 26, Piper Jaffray analyst Charles Duncan reiterated a Buy rating on ACAD, with a price target of $44, which represents a potential upside of 20.6% from where the stock is currently trading. Separately, on July 25, Cowen’s Ritu Baral reiterated a Buy rating on the stock and has a price target of $42.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Charles Duncan and Ritu Baral have a total average return of -5.3% and 4.9% respectively. Duncan has a success rate of 45.8% and is ranked #3748 out of 4085 analysts, while Baral has a success rate of 45.6% and is ranked #558.
The street is mostly Bullish on ACAD stock. Out of 6 analysts who cover the stock, 4 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $45.50, which implies an upside of 24.7% from current levels.
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.