SAN DIEGO, May 11 /PRNewswire-FirstCall/ —ACADIA Pharmaceuticals Inc.(Nasdaq: ACAD), a biopharmaceutical company utilizing innovative technology tofuel drug discovery and clinical development of novel treatments for centralnervous system disorders, today reported its unaudited financial results forthe first quarter ended March 31, 2005.
ACADIA reported a net loss of $5.6 million for the first quarter of 2005,compared to a net loss of $6.5 million for the first quarter of 2004.
At March 31, 2005, ACADIA's cash, cash equivalents and investmentsecurities totaled $41.6 million compared to $35.9 million at December 31,2004. The increase in cash was primarily due to Sepracor Inc.'s purchase ofshares of ACADIA's common stock for $10 million at a 40 percent premium to a30-day trailing average closing price, in connection with a new collaborationagreement, partially offset by cash used to fund ACADIA's operations. Thecash balance at March 31, 2005 did not include net proceeds of approximately$34 million, which ACADIA received on April 20, 2005 from the sale of sharesof common stock and warrants to purchase shares of common stock in a privateplacement.
"During the first quarter of 2005, we continued to progress our leadclinical programs, while at the same time initiating research activities underour new collaboration with Sepracor," said Uli Hacksell, Ph.D., ACADIA's ChiefExecutive Officer. "With the Sepracor collaboration and the completion of ourprivate placement in April 2005, we have significantly strengthened ourbalance sheet and are well positioned to continue our strategy of building abroad pipeline of innovative therapies to treat central nervous systemdisorders and other areas of unmet medical need."
Revenues increased to $2.3 million for the first quarter of 2005, comparedto $924,000 for the first quarter of 2004. The increase in revenues wasprimarily due to $820,000 in initial revenues recognized under ACADIA'scollaboration with Sepracor, which commenced in January 2005, and $500,000 inrevenues earned pursuant to ACADIA's development agreement with The StanleyMedical Research Institute.
Research and development expenses increased to $6.1 million for the firstquarter of 2005, from $5.7 million for the first quarter of 2004. Theincrease in expenses reflected expansion of ACADIA's research and developmentorganization, including increased personnel and supply costs, as ACADIAcontinued the development of its pipeline of clinical and preclinicalprograms, partially offset by a decrease in fees paid to external serviceproviders.
General and administrative expenses increased to $1.6 million for thefirst quarter of 2005, from $912,000 for the first quarter of 2004. Theincrease in general and administrative expenses was primarily due to increasedpersonnel costs as well as increased costs for professional services andinsurance associated with operating as a publicly traded company.
Non-cash, stock-based compensation totaled $371,000 for the first quarterof 2005, compared to $695,000 for the first quarter of 2004.
ACADIA expects that it will use between $26 million and $30 million of itscash resources to fund operations during 2005, and that its current cashresources, plus anticipated payments from existing agreements with itscollaborators, will be sufficient to fund ACADIA's estimated cash requirementsthrough at least mid-2007.
First Quarter 2005 and Recent Highlights
- During the quarter, ACADIA began its collaboration with Sepracorfocused on the development of new drug candidates to treat CNSdisorders. This collaboration is exploring potential clinicalcandidates resulting from ACADIA's preclinical muscarinic program, andalso includes an option to select a preclinical compound from ACADIA's5-HT2A program for use in combination with LUNESTA, Sepracor'sinsomnia drug, for sleep-related indications. In connection with thecollaboration, Sepracor purchased shares of ACADIA's common stock for$10 million at a 40 percent premium to a 30-day trailing averageclosing price. ACADIA recorded the aggregate premium amount of$3.1 million resulting from this purchase as deferred revenue, whichwill be recognized as revenue over the research term, and theremaining purchase amount of $6.9 million as stockholders' equity.
- During the quarter, ACADIA strengthened its research and developmentorganization through the appointments of Daniel P. van Kammen, M.D.,Ph.D. as Vice President, Clinical Development, and Douglas W. Bonhaus,Ph.D. as Vice President, Biosciences.
- During the quarter, ACADIA continued to advance its three proprietaryPhase II programs: ACP-103 as an adjunctive therapy for schizophrenia;ACP-103 for treatment-induced dysfunctions in Parkinson's disease; andACP-104 as a stand-alone treatment for schizophrenia. As previouslyannounced, ACADIA anticipates reporting initial Phase II results ineach of these programs during 2005.
- During the quarter, ACADIA advanced its small molecule androgenreceptor program to preclinical status. In this program, ACADIA hasidentified what it believes to be novel, potent and selective non-steroidal agonists of the androgen receptor, which demonstratetestosterone-like endocrine effects without enlarging the prostate.
- During the quarter, ACADIA presented data from its Phase Ib/IIaclinical trial of ACP-103 completed in 2004 at the 9th InternationalCongress of Parkinson's Disease and Movement Disorders. The resultsdemonstrated that ACP-103 was safe and well tolerated in Parkinson'sdisease patients.
- In April 2005, ACADIA raised net proceeds of approximately $34 millionfrom the sale of shares of common stock and warrants to purchaseshares of common stock in a private placement.
- In April 2005, ACADIA announced the election of Mary Ann Gray, Ph.D.,to its board of directors. Dr. Gray has more than 20 years of WallStreet, financial, and scientific experience in the biotechnologyindustry. Dr. Gray succeeds Carl L. Gordon, Ph.D., who resigned fromACADIA's board of directors.
Conference Call and Webcast Information
Uli Hacksell, Ph.D., Chief Executive Officer, and Thomas H. Aasen, VicePresident and Chief Financial Officer, will review first quarter results andACADIA's development programs via conference call and webcast later today at4:30 p.m. Eastern Time. The conference call may be accessed by dialing 866-761-0749 for participants in the U.S. or Canada and 617-614-2707 forinternational callers (reference passcode 64396418). A telephone replay ofthe conference call may be accessed through May 25, 2005 by dialing888-286-8010 for callers in the U.S. or Canada and 617-801-6888 forinternational callers (reference passcode 89884568). The conference call alsowill be webcast live on ACADIA's website, www.acadia-pharm.com, under theinvestors section and will be archived there until May 25, 2005.
About ACADIA Pharmaceuticals
ACADIA Pharmaceuticals is a biopharmaceutical company utilizing innovativetechnology to fuel drug discovery and clinical development of novel treatmentsfor central nervous system disorders. ACADIA currently has four drug programsin clinical development as well as a portfolio of preclinical and discoveryassets directed at large unmet medical needs, including schizophrenia,Parkinson's disease, neuropathic pain, and glaucoma. Using its proprietarydrug discovery platform, ACADIA has discovered all of the drug candidates inits product pipeline. ACADIA's corporate headquarters is located in SanDiego, California and it maintains research and development operations in bothSan Diego and Scandinavia.
Forward-Looking and Other Statements
Statements in this press release that are not strictly historical innature are forward-looking statements. These statements include but are notlimited to statements related to the progress and timing of ACADIA's drugdiscovery and development programs and related trials and expenditures, thesafety and efficacy of ACADIA's drug candidates, the potential of ACADIA'scollaborations and any payments it may receive thereunder, ACADIA's use ofcash, and ACADIA's future results. These statements are only predictionsbased on current information and expectations and involve a number of risksand uncertainties. Actual events or results may differ materially from thoseprojected in any of such statements due to various factors, including therisks and uncertainties inherent in drug development and commercialization.For a discussion of these and other factors, please refer to ACADIA's annualreport on Form 10-K for the year ended December 31, 2004 filed with the UnitedStates Securities and Exchange Commission as well as other subsequent filingswith the Securities and Exchange Commission, including our re-saleregistration statement on Form S-1 filed on May 10, 2005. You are cautionednot to place undue reliance on these forward-looking statements, which speakonly as of the date hereof. This caution is made under the safe harborprovisions of the Private Securities Litigation Reform Act of 1995. Allforward-looking statements are qualified in their entirety by this cautionarystatement and ACADIA undertakes no obligation to revise or update this pressrelease to reflect events or circumstances after the date hereof. Aregistration statement relating to the shares of common stock sold in theprivate placement has been filed with the Securities and Exchange Commissionbut has not yet become effective. Those securities may not be sold nor mayoffers to buy be accepted prior to the time the registration statement becomeseffective. This release shall not constitute an offer to sell or thesolicitation of an offer to buy nor shall there be any sale of thosesecurities in any state in which such offer, solicitation or sale would beunlawful prior to registration or qualification under the securities laws ofany such state.
Contacts:
ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director, Investor Relations
Thomas H. Aasen, Vice President and Chief Financial Officer
+1 858-558-2871
ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(Unaudited)Three Months EndedMarch 31,2005 2004Collaborative research revenues $2,325 $924Operating expensesResearch and development 6,115 5,749General and administrative 1,639 912Stock-based compensation 371 695Total operating expenses 8,125 7,356Loss from operations (5,800) (6,432)Interest income (expense) 211 (49)Net loss $(5,589) $(6,481)Participation of preferred stock —(5,616)Net loss available to common stockholders (5,589) (865)Net loss per common share, basic and diluted $(0.31) $(0.58)Weighted average common shares outstanding,basic and diluted 17,903 1,495Net loss available to participatingpreferred stockholders $—$(5,616)Net loss per participating preferredshare, basic and diluted $—$(0.57)Weighted average participatingpreferred shares outstanding,basic and diluted —9,901ACADIA's preferred stock was reclassified or converted into 9.9 millionshares of common stock upon the closing of its initial public offering onJune 2, 2004.ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(Unaudited)March 31, December 31,2005 2004(1)AssetsCash, cash equivalents and investmentsecurities, available-for-sale $41,646 $35,927Prepaid expenses and other current assets 2,006 1,891Total current assets 43,652 37,818Property and equipment, net 2,272 2,547Total assets $45,924 $40,365Liabilities and Stockholders' EquityCurrent liabilities 11,692 8,641Long-term liabilities 1,861 1,044Stockholders' equity 32,371 30,680Total liabilities and stockholders' equity $45,924 $40,365(1) The condensed consolidated balance sheet at December 31, 2004 hasbeen derived from the audited financial statements at that date butdoes not include all of the information and footnotes required byaccounting principles generally accepted in the United States forcomplete financial statements.
Web site: http://www.acadia-pharm.com