SAN DIEGO—(BUSINESS WIRE)—Mar. 9, 2009—ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD), a biopharmaceutical companyutilizing innovative technology to fuel drug discovery and clinicaldevelopment of novel treatments for central nervous system disorders,today reported its unaudited financial results for the fourth quarterand year ended December 31, 2008.
ACADIA reported a net loss of $14.0 million, or $0.38 per common share,for the fourth quarter of 2008 compared to a net loss of $17.0 million,or $0.46 per common share, for the fourth quarter of 2007. For the yearended December 31, 2008, ACADIA reported a net loss of $64.2 million, or$1.73 per common share, compared to a net loss of $56.4 million, or$1.60 per common share, for 2007.
“The fourth quarter of 2008 was highlighted by continued progress in thedevelopment of our advanced product candidates, most notably our PhaseIII program with pimavanserin for Parkinson’s disease psychosis,” saidUli Hacksell, Ph.D., ACADIA’s Chief Executive Officer. “We continue toadvance a number of studies in this program, including two pivotaltrials, an open-label safety extension study, and other supportingstudies. We look forward to reporting top-line results from the firstpivotal Phase III trial with pimavanserin in the third quarter of 2009.We also are pleased with the progress in our collaborative clinicalprograms with Allergan, including our chronic pain program, where weexpect Allergan to complete Phase II trials in mid-2009. With ourportfolio of product candidates and the disciplined actions weimplemented last year to streamline our cost structure, we havepositioned ACADIA with multiple product and commercial opportunitieswhile strengthening our cash runway.”
Revenues totaled $325,000 for the fourth quarter of 2008 compared to$1.6 million for the fourth quarter of 2007. The decrease was primarilydue to the completion in early 2008 of the term of ACADIA’s agreementwith Sepracor Inc. as well as lower revenues from its agreements withother parties.
Research and development expenses totaled $12.1 million for the fourthquarter of 2008, including $184,000 in stock-based compensation,compared to $17.3 million for the fourth quarter of 2007, including$306,000 in stock-based compensation. The decrease in research anddevelopment expenses was primarily due to approximately $3.5 million indecreased personnel and other costs associated with ACADIA’s researchand development organization following the Company’s restructuring inAugust 2008, as well as $1.6 million in lower external service costs.External service costs totaled $8.7 million for the fourth quarter of2008, and were primarily comprised of clinical development costs forpimavanserin.
General and administrative expenses totaled $2.4 million for the fourthquarter of 2008, including $364,000 in stock-based compensation,compared to $3.0 million for the fourth quarter of 2007, including$387,000 in stock-based compensation. The decrease in general andadministrative expenses was primarily due to decreased personnel andother administrative costs resulting from ACADIA’s restructuring.
At December 31, 2008, ACADIA’s cash, cash equivalents, and investmentsecurities totaled $60.1 million compared to $126.9 million at December31, 2007. The decrease in cash was primarily due to cash used to fundACADIA’s operations. ACADIA anticipates that its cash used in operationswill be lower in 2009 due to significant expense reductions that haveresulted from the Company’s restructuring, and that its cash resourceswill be sufficient to fund its activities into the first half of 2010.
Conference Call and Webcast Information
ACADIA management will review its fourth quarter results and developmentprograms via conference call and webcast later today at 5:00 p.m.Eastern Time. The conference call may be accessed by dialing866-700-0161 for participants in the U.S. or Canada and 617-213-8832 forinternational callers (reference passcode 63914388). A telephone replayof the conference call may be accessed through March 23, 2009 by dialing888-286-8010 for callers in the U.S. or Canada and 617-801-6888 forinternational callers (reference passcode 11398116). The conference callalso will be webcast live on ACADIA’s website, www.acadia-pharm.com,under the investors section and will be archived there until March 23,2009.
About ACADIA Pharmaceuticals
ACADIA is a biopharmaceutical company utilizing innovative technology tofuel drug discovery and clinical development of novel treatments forcentral nervous system disorders. ACADIA is focused on developing aportfolio of its four most advanced product candidates, includingpimavanserin in Phase III for Parkinson’s disease psychosis, a productcandidate in Phase II for chronic pain and a product candidate in PhaseI for glaucoma, both in collaboration with Allergan, and ACP-106 inIND-track development. All of the product candidates in ACADIA’spipeline emanate from discoveries made using its proprietary drugdiscovery platform. ACADIA maintains a website at www.acadia-pharm.comto which ACADIA regularly posts copies of its press releases as well asadditional information and through which interested parties cansubscribe to receive email alerts.
Forward-Looking Statements
Statements in this press release that are not strictly historical innature are forward-looking statements. These statements include but arenot limited to statements related to the progress of and benefits to bederived from ACADIA’s drug discovery and development programs, includingpimavanserin and ACP-106, and from its collaborative efforts withAllergan; the timing or design of future clinical trials; the timing ofcompletion of or announcements of results of clinical trials; and thefuture effects of the Company’s restructuring. These statements are onlypredictions based on current information and expectations and involve anumber of risks and uncertainties. Actual events or results may differmaterially from those projected in any of such statements due to variousfactors, including the risks and uncertainties inherent in drugdiscovery, development and commercialization, and collaborations withothers. For a discussion of these and other factors, please refer toACADIA’s annual report on Form 10-K for the year ended December 31, 2007as well as other subsequent filings with the Securities and ExchangeCommission. You are cautioned not to place undue reliance on theseforward-looking statements, which speak only as of the date hereof. Thiscaution is made under the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. All forward-looking statementsare qualified in their entirety by this cautionary statement and ACADIAundertakes no obligation to revise or update this press release toreflect events or circumstances after the date hereof.
ACADIA PHARMACEUTICALS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) |
| | | | |
| | Three Months Ended
December 31, | | Years Ended
December 31, |
| | | 2008 | | | | 2007 | | | | 2008 | | | | 2007 | |
| | | | |
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| Collaborative revenues | | $ | 325 | | | $ | 1,583 | | | $ | 1,590 | | | $ | 7,555 | |
| | | | | | | | |
| Operating expenses | | | | | | | | |
| Research and development (includes stock-based compensation of $184,$306, $1,325 and $2,721, respectively) | | | 12,145 | | | | 17,278 | | | | 56,750 | | | | 57,942 | |
| General and administrative (includes stock-based compensation of$364, $387, $1,662 and $1,574, respectively) | | | 2,394 | | | | 3,010 | | | | 11,818 | | | | 12,267 | |
| Total operating expenses | | | 14,539 | | | | 20,288 | | | | 68,568 | | | | 70,209 | |
| Loss from operations | | | (14,214 | ) | | | (18,705 | ) | | | (66,978 | ) | | | (62,654 | ) |
| Interest income, net | | | 251 | | | | 1,667 | | | | 2,734 | | | | 6,264 | |
| Net loss | | $ | (13,963 | ) | | $ | (17,038 | ) | | $ | (64,244 | ) | | $ | (56,390 | ) |
| Net loss per common share, basic and diluted: | | $ | (0.38 | ) | | $ | (0.46 | ) | | $ | (1.73 | ) | | $ | (1.60 | ) |
| Weighted average common shares outstanding, basic and diluted | | | 37,157 | | | | 36,989 | | | | 37,113 | | | | 35,211 | |
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| ACADIA PHARMACEUTICALS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) |
| | | | | |
| | | December 31, 2008 | | December 31, 2007(1) |
| | | | | |
| Assets | | | | |
| Cash, cash equivalents, and investment securities | | $ | 60,083 | | $ | 126,858 |
| Prepaid expenses, receivables and other current assets | | | 2,299 | | | 4,395 |
| Total current assets | | | 62,382 | | | 131,253 |
| Property and equipment, net | | | 2,103 | | | 3,048 |
| Other assets | | | 192 | | | 283 |
| Total assets | | $ | 64,677 | | $ | 134,584 |
| Liabilities and Stockholders’ Equity | | | | |
| Current liabilities | | $ | 11,051 | | $ | 19,287 |
| Long-term liabilities | | | 634 | | | 1,363 |
| Stockholders’ equity | | | 52,992 | | | 113,934 |
| Total liabilities and stockholders’ equity | | $ | 64,677 | | $ | 134,584 |
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(1) | | The condensed consolidated balance sheet at December 31, 2007 hasbeen derived from the audited financial statements at that datebut does not include all of the information and footnotes requiredby accounting principles generally accepted in the United Statesfor complete financial statements. |
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Source: ACADIA Pharmaceuticals Inc.
ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director,Investor Relations
Thomas H. Aasen, Vice President and ChiefFinancial Officer
858-558-2871