ACADIA Pharmaceuticals Reports First Quarter 2009 Financial Results

SAN DIEGO—(BUSINESS WIRE)—May. 11, 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 first quarterended March 31, 2009.

ACADIA reported a net loss of $15.0 million, or $0.40 per common share,for the first quarter of 2009 compared to a net loss of $16.4 million,or $0.44 per common share, for the first quarter of 2008. The net lossesfor the first quarters of 2009 and 2008 included $575,000 and $836,000,respectively, in non-cash, stock-based compensation expense.

At March 31, 2009, ACADIA’s cash, cash equivalents, and investmentsecurities totaled $46.4 million compared to $60.1 million at December31, 2008. Following the end of the first quarter, ACADIA received anupfront cash payment of $30 million under the terms of its collaborationwith Biovail Laboratories International SRL, which was established inearly May 2009.

“The beginning of 2009 has been a highly productive period for ACADIA,highlighted by the formation of two important new collaborations withBiovail and Meiji Seika, and the completion of enrollment in our firstpivotal Phase III trial with pimavanserin in patients with Parkinson’sdisease psychosis,” said Uli Hacksell, Ph.D., ACADIA’s Chief ExecutiveOfficer. “We believe that ACADIA is well positioned to continue toadvance our promising portfolio of product candidates that provide uswith multiple product and commercial opportunities.”

Revenues totaled $374,000 for the first quarter of 2009 compared to$806,000 for the first quarter of 2008. This decrease was primarily dueto lower revenues from ACADIA’s collaborations with Allergan and itsagreements with other parties.

Research and development expenses totaled $12.6 million for the firstquarter of 2009, including $221,000 in stock-based compensation,compared to $15.2 million for the first quarter of 2008, including$415,000 in stock-based compensation. The decrease in research anddevelopment expenses was primarily due to approximately $3.9 million indecreased personnel and other costs associated with the research anddevelopment organization following ACADIA’s restructuring in August2008, offset in part by $1.3 million in increased external servicecosts. External service costs totaled $9.1 million for the first quarterof 2009 and were primarily comprised of development costs forpimavanserin.

General and administrative expenses totaled $3.0 million for the firstquarter of 2009, including $354,000 in stock-based compensation,compared to $3.3 million for the first quarter of 2008, including$421,000 in stock-based compensation. The decrease in general andadministrative expenses was primarily due to decreased personnel andother administrative costs resulting from ACADIA’s restructuring, offsetin part by increased external expenses.

Net interest income decreased to $167,000 for the first quarter of 2009from $1.3 million in the comparable quarter of 2008 due to decreasedyields on ACADIA's investment security portfolio and lower averagelevels of cash and investment securities.

ACADIA anticipates that its cash, cash equivalents and investmentsecurities will be greater than $40 million at December 31, 2009, andthat its existing cash resources and payments from its collaborationswill be sufficient to fund its operations at least into the first halfof 2011.

First Quarter 2009 and Recent Highlights

• ACADIA announced completion of enrollment in the first pivotal PhaseIII trial of pimavanserin in patients with Parkinson’s diseasepsychosis (PDP) in early May 2009. Top-line results from this trialare expected to be reported by the end of the third quarter of 2009.
• ACADIA is continuing to enroll patients in the second pivotal PhaseIII trial of pimavanserin in patients with PDP. ACADIA also iscontinuing to conduct an open-label safety extension study pursuant towhich eligible patients who have completed either of the two pivotalPhase III trials have the opportunity to enroll if, in the opinion ofthe physician, a patient may benefit from continued treatment withpimavanserin.
• ACADIA established a collaboration with Biovail LaboratoriesInternational SRL to co-develop and commercialize pimavanserin forneurological and psychiatric indications, including PDP andAlzheimer’s disease psychosis (ADP), in the United States and Canada.
• ACADIA established a collaboration with Meiji Seika Kaisha, Ltd. todevelop and commercialize a novel class of pro-cognitive drugs totreat patients with schizophrenia and related disorders in Japan andseveral other Asian countries.
• ACADIA extended the term of its March 2003 discovery alliance withAllergan for one additional year through March 2010. Joint researchefforts will be focused in ophthalmic indications.
• ACADIA was awarded a grant from the Michael J. Fox Foundation for thedevelopment of novel estrogen receptor beta (ER-beta) agonists for thetreatment of Parkinson’s disease.

Conference Call and Webcast Information

ACADIA management will review its first quarter results and developmentprograms via conference call and webcast at 5:00 p.m. Eastern Time. Theconference call may be accessed by dialing 866-825-3209 for participantsin the U.S. or Canada and 617-213-8061 for international callers(reference passcode 62919191). A telephone replay of the conference callmay be accessed through May 25, 2009 by dialing 888-286-8010 for callersin the U.S. or Canada and 617-801-6888 for international callers(reference passcode 93775458). The conference call also will be webcastlive on ACADIA’s website, www.acadia-pharm.com,under the investors section and will be archived there until May 25,2009.

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 currently developing aportfolio consisting of its five most advanced product candidatesincluding pimavanserin, which is in Phase III development forParkinson’s disease psychosis in collaboration with Biovail. In additionto pimavanserin, ACADIA has a product candidate in Phase II for chronicpain and a product candidate in Phase I for glaucoma, both incollaboration with Allergan, as well as two programs in IND-trackdevelopment. All of the product candidates in ACADIA’s pipeline emanatefrom discoveries made using its proprietary drug discovery 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 and timing of ACADIA’sdrug discovery and development programs (collectively referred to as itspipeline) either alone or with a partner, including clinical trials andthe results therefrom, and the benefits to be derived from ACADIA’sproduct candidates, in each case including pimavanserin, potentialpayments under its collaboration agreements, its future financialperformance and the length of its cash runway. 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, and the fact that past results of clinical trials may not beindicative of further trial results. For a discussion of these and otherfactors, please refer to ACADIA’s annual report on Form 10-K for theyear ended December 31, 2008 as well as other subsequent filings withthe Securities and Exchange Commission. You are cautioned not to placeundue reliance on these forward-looking statements, which speak only asof 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 thiscautionary statement and ACADIA undertakes no obligation to revise orupdate this press release to reflect events or circumstances after thedate hereof.

Source: ACADIA Pharmaceuticals Inc.

ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director, InvestorRelations
Thomas H. Aasen, Vice President and ChiefFinancial Officer
(858) 558-2871