ACADIA reported a net loss of $12.6 million, or $0.42 per commonshare, for the first quarter of 2007 compared to a net loss of $9.5million, or $0.39 per common share, for the first quarter of 2006. Thenet losses for the first quarters of 2007 and 2006 included $1.3million and $900,000, respectively, in non-cash, stock-basedcompensation expense.
At March 31, 2007, ACADIA's cash, cash equivalents, and investmentsecurities totaled $69.9 million compared to $83.3 million at December31, 2006. Following the end of the first quarter, ACADIA raised anadditional $96.1 million in net proceeds from a public offering inApril 2007.
"The beginning of 2007 has been a remarkable period for ACADIA,highlighted by positive top-line results from our Phase IIschizophrenia co-therapy trial with pimavanserin, and the completionof our recent public offering," said Uli Hacksell, Ph.D., ACADIA'sChief Executive Officer. "Meanwhile, we are also in the final stagesof preparations to initiate the first pivotal trial in our Phase IIIprogram with pimavanserin for Parkinson's disease psychosis and ourPhase IIb trial with ACP-104 for schizophrenia. We look forward tocontinuing this momentum through the remainder of 2007."
Revenues totaled $2.0 million for the first quarter of 2007compared to $2.5 million for the first quarter of 2006. This decreasewas primarily due to lower revenues recognized under ACADIA'scollaborations with Allergan, Inc. Revenues from ACADIA's agreementswith Sepracor Inc. and The Stanley Medical Research Institute totaled$889,000 and $750,000, respectively, for the first quarter of 2007,compared to $931,000 and $500,000, respectively, for the first quarterof 2006.
Research and development expenses totaled $12.3 million for thefirst quarter of 2007, including $904,000 in stock-based compensation,compared to $9.7 million for the first quarter of 2006, including$551,000 in stock-based compensation. The increase in research anddevelopment expenses was primarily due to increased costs associatedwith the development of ACADIA's proprietary clinical programs,including $1.0 million in increased fees paid to external serviceproviders, which totaled $4.9 million for the first quarter of 2007,and increased costs associated with expansion of ACADIA's developmentorganization.
General and administrative expenses totaled $3.2 million for thefirst quarter of 2007, including $370,000 in stock-based compensation,compared to $2.7 million for the first quarter of 2006, including$349,000 in stock-based compensation. The increase in general andadministrative expenses was primarily due to increased professionalfees, including costs associated with patents and patent applicationsfor our intellectual property, and increased costs associated withexpansion of ACADIA's administrative organization.
ACADIA has indicated that it anticipates that its cash, cashequivalents and investment securities will be greater than $120million at December 31, 2007.
First Quarter 2007 and Recent Highlights
—ACADIA reported positive top-line results in March 2007 from aPhase II schizophrenia co-therapy trial, which demonstratedseveral advantages of co-therapy with pimavanserin (previouslyreferred to as ACP-103), including enhanced efficacy, fasteronset of antipsychotic action, and an improved side-effectprofile.
—ACADIA made presentations at the 2007 International Congresson Schizophrenia Research covering top-line data from itspimavanserin Phase II schizophrenia co-therapy trial, as wellas preclinical and top-line clinical data on ACP-104 for thetreatment of schizophrenia.
—ACADIA nominated ACP-106, a proprietary, potent and selective5-HT2A inverse agonist, as a clinical candidate. ACADIAbelieves that ACP-106 and other compounds in its serotoninprogram will enable ACADIA, alone or in collaboration, to morebroadly pursue a range of potential CNS-related therapeuticindications.
—ACADIA completed a public offering in April 2007, raising netproceeds of $96.1 million through the sale of approximately6.6 million shares of its common stock.
Conference Call and Webcast Information
ACADIA management will review first quarter results and highlightsvia conference call and webcast later today at 5:00 p.m. Eastern Time.The conference call may be accessed by dialing 800-299-7928 forparticipants in the U.S. or Canada and 617-614-3926 for internationalcallers (reference passcode 99646143). A telephone replay of theconference call may be accessed through May 22, 2007 by dialing888-286-8010 for callers in the U.S. or Canada and 617-801-6888 forinternational callers (reference passcode 59529452). The conferencecall also will be webcast live on ACADIA's website,www.acadia-pharm.com, under the investors section and will be archivedthere until May 22, 2007.
About ACADIA Pharmaceuticals
ACADIA is a biopharmaceutical company utilizing innovativetechnology to fuel drug discovery and clinical development of noveltreatments for central nervous system disorders. ACADIA currently hasfive mid-to-late stage clinical programs as well as a portfolio ofpreclinical and discovery assets, directed at diseases with largeunmet medical needs, including schizophrenia, Parkinson's diseasepsychosis, sleep maintenance insomnia, and neuropathic pain. All ofthe drug candidates in ACADIA's product pipeline emanate fromdiscoveries made using its proprietary drug discovery platform.ACADIA's corporate headquarters is located in San Diego, Californiaand it maintains research and development operations in both San Diegoand Malmo, Sweden.
Forward-Looking Statements
Statements in this press release that are not strictly historicalin nature are forward-looking statements. These statements include butare not limited to statements related to the December 31, 2007 cashposition, the progress of ACADIA's drug discovery and developmentprograms, potential collaborations, and the benefits to be derivedfrom ACADIA's drug candidates and preclinical programs, in each case,including pimavanserin, ACP-104, and ACP-106. These statements areonly predictions based on current information and expectations andinvolve a number of risks and uncertainties. Actual events or resultsmay differ materially from those projected in any of such statementsdue to various factors, including the risks and uncertainties inherentin drug discovery, development and commercialization, andcollaborations with others, and the fact that past results of clinicaltrials may not be indicative of further trial results. For adiscussion of these and other factors, please refer to ACADIA's annualreport on Form 10-K for the year ended December 31, 2006 as well asother subsequent filings with the Securities and Exchange Commission.You are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of the date hereof. This caution ismade under the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995. All forward-looking statements arequalified 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 EndedMarch 31,—————————2007 2006————- ————Collaborative revenues $1,960 $2,537Operating expensesResearch and development (includes stock-basedcompensation of $904 and $551 for the three monthsended March 31, 2007 and 2006, respectively) 12,261 9,671General and administrative (includes stock-basedcompensation of $370 and $349 for the three monthsended March 31, 2007 and 2006, respectively) 3,152 2,739Provision for loss from litigation —- 227————- ————Total operating expenses 15,413 12,637————- ————Loss from operations (13,453) (10,100)Interest income (expense), net 899 582————- ————Loss before change in accounting principle $(12,554) $(9,518)Cumulative effect of change in accounting principle —51————- ————Net loss $(12,554) $(9,467)========= ========Net loss per common share, basic and diluted:Before change in accounting principle $(0.42) $(0.39)Cumulative effect of change in accountingprinciple ——————- ————Net loss per common share, basic and diluted $(0.42) $(0.39)========= ========Weighted average common shares outstanding, basicand diluted 30,016 24,308========= ========
ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(Unaudited)March December31, 31,2007 2006(1)————————AssetsCash, cash equivalents and investment securities $69,899 $83,255Prepaid expenses, receivables and other currentassets 2,466 2,528————————Total current assets 72,365 85,783Property and equipment, net 3,287 3,505Other assets 96 256————————Total assets $75,748 $89,544======== ========Liabilities and Stockholders' EquityCurrent liabilities 17,272 20,534Long-term liabilities 1,681 1,851Stockholders' equity 56,795 67,159————————Total liabilities and stockholders' equity $75,748 $89,544======== ========
(1) The condensed consolidated balance sheet at December 31, 2006has been 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.
SOURCE: ACADIA Pharmaceuticals Inc.
ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director, Investor Relations
Thomas H. Aasen, Vice President andChief Financial Officer
(858) 558-2871