SAN DIEGO, Aug. 10 /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 second quarter and six months ended June 30, 2005.
ACADIA reported a net loss of $6.0 million for the second quarter of 2005,compared to a net loss of $5.9 million for the second quarter of 2004. Forthe six months ended June 30, 2005, ACADIA reported a net loss of$11.6 million, compared to a net loss of $12.4 million for the comparableperiod of 2004.
At June 30, 2005, ACADIA's cash, cash equivalents, and investmentsecurities totaled $69.0 million, compared to $35.9 million at December 31,2004. The increase in cash was primarily due to net proceeds from sales ofequity securities, including $34 million raised in a private placement inApril 2005 and $10 million received from the sale of common stock to SepracorInc. in January 2005 in connection with a new collaboration agreement,partially offset by cash used to fund ACADIA's operations in 2005.
"The second quarter of 2005 was an important period for ACADIA,highlighted by the completion of our financing and considerable progress inour lead clinical programs," said Uli Hacksell, Ph.D., ACADIA's ChiefExecutive Officer. "We believe that we are now well positioned to deliver aseries of clinical milestones throughout the remainder of 2005 and into 2006as we continue to advance our pipeline of innovative drugs to treat centralnervous system disorders and other areas of unmet medical need."
Collaborative revenues increased to $2.5 million for the second quarter of2005, compared to $1.0 million for the second quarter of 2004. This increasewas primarily due to $923,000 in revenues recognized under ACADIA'scollaboration with Sepracor, which commenced in January 2005, and $500,000 inrevenues earned pursuant to ACADIA's 2004 development agreement with theStanley Medical Research Institute. Revenues from ACADIA's collaborationswith Allergan totaled $1.1 million and $1.0 million for the three months endedJune 30, 2005 and 2004, respectively.
Research and development expenses increased to $6.6 million for the secondquarter of 2005 from $5.4 million for the second quarter of 2004. Theincrease in expenses largely reflected increased clinical development costsassociated with ACADIA's proprietary Phase II programs and costs associatedwith expansion of ACADIA's research and development organization.
General and administrative expenses increased to $2.1 million for thesecond quarter of 2005 from $880,000 for the comparable quarter of 2004. Theincrease in general and administrative expenses was due primarily to increasedprofessional fees, insurance costs and personnel expenses associated withACADIA operating as a publicly traded company.
Non-cash, stock-based compensation expenses decreased to $395,000 for thesecond quarter of 2005 from $615,000 for the second quarter of 2004.
Second Quarter 2005 Highlights
- ACADIA significantly strengthened its balance sheet raising netproceeds of $34 million from the sale of shares of common stock andwarrants to purchase common stock in a private placement.
- ACADIA reported encouraging results from a planned interim trendanalysis of its ongoing multi-center Phase II clinical trial ofACP-103 for treatment-induced psychosis in patients with Parkinson'sdisease. The interim trend analysis, which was based on data from thefirst 30 patients to complete the study, showed a greater reduction inpsychotic symptoms in the ACP-103 treatment group relative to theplacebo group. ACADIA anticipates reporting results from the completetrial encompassing 60 patients in late-2005 or early-2006.
- ACADIA continued to advance its proprietary Phase II schizophreniaprograms: ACP-103 as an adjunctive therapy for schizophrenia andACP-104 as a stand-alone treatment for schizophrenia. ACADIAanticipates reporting initial Phase II results in each of theseprograms during 2005.
- ACADIA enhanced its drug discovery and development capabilitiesthrough the consolidation of its chemistry operations in a newcustom-built chemistry research and development facility located inMalmo, Sweden.
Conference Call and Webcast Information
Uli Hacksell, Ph.D., Chief Executive Officer, and Thomas H. Aasen, VicePresident and Chief Financial Officer, will review second quarter results andthe Company's development programs via conference call and webcast later todayat 4:30 p.m. Eastern Time. The conference call may be accessed by dialing866-700-7477 for participants from the U.S. or Canada and 617-213-8840 forinternational callers (reference participant passcode 70881736). Theconference call also will be webcast live on ACADIA's website,www.acadia-pharm.com, under the investors section and will be archived thereuntil August 24, 2005. A telephone replay of the conference call may beaccessed through August 24, 2005 by dialing 888-286-8010 for callers in theU.S. or Canada and 617-801-6888 for international callers (reference passcode28397094).
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 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 our drugdevelopment programs and related trials and the safety and efficacy of ourdrug candidates. These statements are only predictions based on currentinformation and expectations and involve a number of risks and uncertainties.Actual events or results may differ materially from those projected in any ofsuch statements due to various factors, including the risks and uncertaintiesinherent in drug development and commercialization. For a discussion of theseand other factors, please refer to ACADIA's annual report on Form 10-K for theyear ended December 31, 2004 filed with the United States Securities andExchange Commission as well as other subsequent filings with the Securitiesand Exchange Commission. You are cautioned not to place undue reliance onthese forward-looking statements, which speak only as of the date hereof.This caution is made under the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. All forward-looking statements arequalified in their entirety by this cautionary statement and ACADIA undertakesno obligation to revise or update this press release to reflect events orcircumstances after the date hereof.
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 Ended Six Months EndedJune 30, June 30,2005 2004 2005 2004Collaborative revenues $2,514 $1,016 $4,840 $1,940Operating expensesResearch and development 6,563 5,407 12,679 11,156General and administrative 2,050 880 3,689 1,791Stock-based compensation 395 614 766 1,310Total operating expenses 9,008 6,901 17,134 14,257Loss from operations (6,494) (5,885) (12,294) (12,317)Interest income (expense) 457 (1) 668 (51)Net loss (6,037) (5,886) (11,626) (12,368)Participation of preferredstock —(3,110) —(8,587)Net loss available tocommon stockholders (6,037) (2,776) (11,626) (3,781)Net loss per common share,basic and diluted $(0.26) $(0.42) $(0.56) $(0.94)Weighted average commonshares outstanding, basicand diluted 23,274 6,552 20,589 4,024Net loss available toparticipating preferredstockholders $ —$(3,110) $ —$(8,587)Net loss per participatingpreferred share, basic anddiluted $ —$(0.31) $ —$(0.87)Weighted average participatingpreferred shares outstanding,basic and diluted —9,901 —9,901ACADIA's preferred stock was reclassified or converted into9,900,913 shares of common stock upon the closing of its initial publicoffering on June 2, 2004.ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(Unaudited)June 30, December 31,2005 2004(1)AssetsCash, cash equivalents and investmentsecurities, available-for-sale $68,961 $35,927Prepaid expenses and other current assets 2,437 1,891Total current assets 71,398 37,818Property and equipment, net 2,233 2,547Total assets $73,631 $40,365Liabilities and Stockholders' EquityCurrent liabilities 11,078 8,641Long-term liabilities 1,403 1,044Stockholders' equity 61,150 30,680Total liabilities and stockholders' equity $73,631 $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.