SAN DIEGO—(BUSINESS WIRE)—Aug. 6, 2007—ACADIA PharmaceuticalsInc. (Nasdaq:ACAD), a biopharmaceutical company utilizing innovativetechnology to fuel drug discovery and clinical development of noveltreatments for central nervous system disorders, today reported itsunaudited financial results for the second quarter and six monthsended June 30, 2007.
ACADIA reported a net loss of $10.8 million, or $0.29 per commonshare, for the second quarter of 2007 compared to a net loss of $11.9million, or $0.43 per common share, for the second quarter of 2006.For the six months ended June 30, 2007, ACADIA reported a net loss of$23.3 million, or $0.70 per common share, compared to a net loss of$21.3 million, or $0.82 per common share, for the comparable period of2006.
At June 30, 2007, ACADIA's cash, cash equivalents, and investmentsecurities totaled $153.9 million compared to $83.3 million atDecember 31, 2006. The increase in cash was primarily due to $96.1million in net proceeds raised in a public offering of common stockduring the second quarter of 2007, partially offset by cash used tofund ACADIA's operations.
"The second quarter of 2007 was highlighted by ACADIA's transitionto a Phase III-stage company with the initiation of our first pivotalPhase III trial with pimavanserin for Parkinson's disease psychosis,as well as by the initiation of our Phase IIb trial with ACP-104 forschizophrenia and the successful completion of our public offering,"said Uli Hacksell, Ph.D., ACADIA's Chief Executive Officer. "We havegained considerable momentum during the first half of this year, andwe believe that ACADIA is well positioned to play a leadership role inproviding next generation therapies for patients suffering fromneuropsychiatric and related CNS disorders."
Revenues totaled $2.1 million for the second quarter of 2007compared to $1.9 million for the second quarter of 2006, and werecomprised of revenues from ACADIA's collaborations with Sepracor Inc.and Allergan, Inc. as well as its agreements with The Stanley MedicalResearch Institute and other parties. Revenues from ACADIA'scollaborations with Sepracor and Allergan totaled $827,000 and$666,000, respectively, for the second quarter of 2007, compared to$945,000 and $435,000, respectively, for the second quarter of 2006.
Research and development expenses totaled $11.5 million for thesecond quarter of 2007, including $705,000 in stock-basedcompensation, compared to $11.4 million for the second quarter of2006, including $315,000 in stock-based compensation. The increase inresearch and development expenses was primarily due to increased costsassociated with expansion of ACADIA's development organization andincreased stock-based compensation, largely offset by lower externalservice costs. External service costs decreased to $4.1 million forthe second quarter of 2007 compared to $5.0 million for the secondquarter of 2006 primarily due to the completion of ACADIA's Phase IIschizophrenia co-therapy trial with pimavanserin. ACADIA anticipatesthat its external service costs will increase during the second halfof 2007 following the recent initiation of a pivotal trial in itsPhase III program with pimavanserin for Parkinson's disease psychosis(PDP) and a Phase IIb trial with ACP-104 for schizophrenia.
General and administrative expenses totaled $3.2 million for thesecond quarter of 2007, including $377,000 in stock-basedcompensation, compared to $3.1 million for the second quarter of 2006,including $371,000 in stock-based compensation. Increased costsassociated with expansion of ACADIA's administrative organization werelargely offset by lower professional fees.
Second Quarter 2007 Highlights
- ACADIA completed its full analysis of the data from the PhaseII schizophrenia co-therapy trial with pimavanserin. Thisanalysis has confirmed the robustness of the top-line resultsreported in March 2007, which demonstrated several advantagesof co-therapy with pimavanserin and a sub-maximal dose ofrisperidone. These advantages included enhanced efficacy, afaster onset of antipsychotic action, and an improvedside-effect profile. ACADIA is planning to present clinicaldata from this study at a medical conference in the secondhalf of 2007.
- ACADIA initiated the first pivotal trial in its Phase IIIprogram with pimavanserin as a treatment for PDP. The trial isdesigned to evaluate the safety and efficacy of pimavanserinin approximately 240 patients with PDP.
- ACADIA initiated a Phase IIb clinical trial with ACP-104 as atreatment for patients with schizophrenia. The trial isdesigned to evaluate the safety and efficacy of ACP-104 inapproximately 250 patients with schizophrenia who areexperiencing an acute psychotic episode.
- ACADIA earned a milestone payment associated with Allergan'sinitiation of an exploratory clinical study with a smallmolecule drug candidate for the treatment of glaucoma. Theselective muscarinic compound emanates from a discovery madeat ACADIA and is being developed pursuant to the companies'collaboration focused on novel treatments for glaucoma.
- ACADIA completed a public offering, raising net proceeds of$96.1 million through the sale of approximately 6.6 millionshares of its common stock.
Conference Call and Webcast Information
ACADIA management will review its second quarter results anddevelopment programs via conference call and webcast later today at5:00 p.m. Eastern Time. The conference call may be accessed by dialing866-831-5605 for participants in the U.S. or Canada and 617-213-8851for international callers (reference passcode 21628174). A telephonereplay of the conference call may be accessed through August 20, 2006by dialing 888-286-8010 for callers in the U.S. or Canada and617-801-6888 for international callers (reference passcode 80861306).The conference call also will be webcast live on ACADIA's website,www.acadia-pharm.com, under the investors section and will be archivedthere until August 20, 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 large unmetmedical needs, including schizophrenia, Parkinson's disease psychosis,sleep maintenance insomnia, and neuropathic pain. All of the drugcandidates in ACADIA's product pipeline emanate from discoveries madeusing its proprietary drug discovery platform. ACADIA's corporateheadquarters is located in San Diego, California and it maintainsresearch and development operations in both San Diego and 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 anticipated increases inexternal service costs, ACADIA's plans to present clinical data, theprogress and timing of ACADIA's drug discovery and developmentprograms and the benefits to be derived from ACADIA's drug candidatesand preclinical programs, including pimavanserin and ACP-104. Thesestatements are only predictions based on current information andexpectations and involve a number of risks and uncertainties. Actualevents or results may differ materially from those projected in any ofsuch statements due to various factors, including the risks anduncertainties inherent in drug discovery, development andcommercialization, and collaborations with others, and the fact thatpast results of clinical trials may not be indicative of further trialresults. For a discussion of these and other factors, please refer toACADIA's annual report on Form 10-K for the year ended December 31,2006 as well as other subsequent filings with the Securities andExchange Commission. You are cautioned not to place undue reliance onthese forward-looking statements, which speak only as of the datehereof. This caution is made under the safe harbor provisions of thePrivate Securities Litigation Reform Act of 1995. All forward-lookingstatements are qualified in their entirety by this cautionarystatement and ACADIA undertakes no obligation to revise or update thispress release to reflect events or circumstances after the datehereof.
ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(Unaudited)Three Months Ended Six Months EndedJune 30, June 30,—————————- —————————-2007 2006 2007 2006————- ————- ————- ————-Collaborative revenues $ 2,055 $ 1,881 $ 4,015 $ 4,418Operating expensesResearch and development(includes stock-basedcompensation of $705, $315,$1,609 and $866,respectively) 11,495 11,439 23,756 21,111General and administrative(includes stock-basedcompensation of $377, $371,$747 and $720, respectively) 3,163 3,112 6,316 5,851Provision for loss fromlitigation —194 —421————- ————- ————- ————-Total operatingexpenses 14,658 14,745 30,072 27,383————- ————- ————- ————-Loss from operations (12,603) (12,864) (26,057) (22,965)Interest income (expense), net 1,850 997 2,750 1,579————- ————- ————- ————-Loss before change inaccounting principle (10,753) (11,867) (23,307) (21,386)Cumulative effect of change inaccounting principle ———51————- ————- ————- ————-Net loss $(10,753) $(11,867) $(23,307) $(21,335)========= ========= ========= =========Net loss per common share,basic and diluted:Before change inaccounting principle $ (0.29) $ (0.43) $ (0.70) $ (0.82)Cumulative effect ofchange in accountingprinciple ————————- ————- ————- ————-Net loss per commonshare, basic anddiluted $ (0.29) $ (0.43) $ (0.70) $ (0.82)========= ========= ========= =========Weighted average common sharesoutstanding, basic anddiluted 36,894 27,792 33,455 26,050========= ========= ========= =========
ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(Unaudited)June 30, December 31,2006 2006(1)——————- ——————AssetsCash, cash equivalents, and investmentsecurities $ 153,869 $ 83,255Prepaid expenses, receivables and othercurrent assets 3,024 2,528——————- ——————Total current assets 156,893 85,783Property and equipment, net 3,141 3,505Other assets 187 256——————- ——————Total assets $ 160,221 $ 89,544============= ============Liabilities and Stockholders' EquityCurrent liabilities 14,326 20,534Long-term liabilities 1,625 1,851Stockholders' equity 144,270 67,159——————- ——————Total liabilities and stockholders'equity $ 160,221 $ 89,544============= ============
(1) The condensed consolidated balance sheet at December 31, 2006 hasbeen derived from the audited financial statements at that datebut does not include all of the information and footnotesrequired by accounting principles generally accepted in theUnited States for complete financial statements.
CONTACT: ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director, Investor RelationsThomas H. Aasen, Vice President and Chief FinancialOfficer
858-558-2871
SOURCE: ACADIA Pharmaceuticals Inc.