SAN DIEGO—(BUSINESS WIRE)—Nov. 5, 2008—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 third quarter ended September 30,2008.
ACADIA reported a net loss of $15.6 million, or $0.42 per commonshare, for the third quarter of 2008 compared to a net loss of $16.0million, or $0.43 per common share, for the third quarter of 2007. Thenet loss for the third quarter of 2008 included charges of $2.1million in connection with ACADIA's strategic restructuring announcedin August. For the nine months ended September 30, 2008, ACADIAreported a net loss of $50.3 million, or $1.36 per common share,compared to a net loss of $39.4 million, or $1.14 per common share,for the comparable period of 2007.
"During the third quarter, we continued to make important progressin the development of our four most advanced product candidates, withthe primary emphasis on our Phase III program with pimavanserin forParkinson's disease psychosis," said Uli Hacksell, Ph.D., ChiefExecutive Officer of ACADIA. "Through our restructuring, we havepositioned ACADIA with multiple product and commercial opportunitieswhile, at the same time, streamlining our organization to reduce ourexpenditures and extend our cash runway. Importantly, we remain ontrack to achieve key milestones in our advanced programs over the nextyear, including reporting top-line results from the first Phase IIIpivotal trial with pimavanserin during the third quarter of 2009."
Revenues totaled $282,000 for the third quarter of 2008 comparedto $2.0 million for the third quarter of 2007. The decrease wasprimarily due to the completion of the term of ACADIA's agreement withSepracor Inc., as well as lower revenues from its collaborations withAllergan, Inc. and agreements with other parties.
Research and development expenses totaled $13.4 million for thethird quarter of 2008, including $346,000 in stock-based compensation,compared to $16.9 million for the third quarter of 2007, including$805,000 in stock-based compensation. Research and developmentexpenses for the third quarter of 2008 included a charge of $1.7million in connection with workforce reductions from ACADIA'srestructuring. Despite this charge, research and development expensesdecreased during the third quarter of 2008 relative to the comparableperiod of 2007 primarily due to $3.1 million in lower external servicecosts as well as cost savings resulting from ACADIA's restructuring.
General and administrative expenses totaled $3.0 million for thethird quarter of 2008, including $446,000 in stock-based compensation,and were comparable to expenses for the third quarter of 2007. Generaland administrative expenses for the third quarter of 2008 included acharge of $454,000 in connection with workforce reductions fromACADIA's restructuring, which was offset by cost reductions.
At September 30, 2008, ACADIA's cash, cash equivalents, andinvestment securities totaled $72.7 million compared to $126.9 millionat December 31, 2007. ACADIA anticipates that its cash used inoperations will be lower in 2009 due to expense reductions resultingfrom the restructuring undertaken this year, and that its existingcash resources will be sufficient to fund its activities into thefirst half of 2010.
Conference Call and Webcast Information
ACADIA management will review its third quarter results anddevelopment programs via conference call and webcast at 5:00 p.m.Eastern Time. The conference call may be accessed by dialing800-435-1261 for participants in the U.S. or Canada and 617-614-4076for international callers (reference passcode 29663518). A telephonereplay of the conference call may be accessed through November 19,2008 by dialing 888-286-8010 for callers in the U.S. or Canada and617-801-6888 for international callers (reference passcode 10534976).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 November 19, 2008.
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 is focused ondeveloping a portfolio of its four most advanced product candidates,including pimavanserin in Phase III for Parkinson's disease psychosis,a product candidate in Phase II for chronic pain and a productcandidate in Phase I for glaucoma, both in collaboration withAllergan, and ACP-106 in IND-track development. All of the productcandidates in ACADIA's pipeline emanate from discoveries made usingits proprietary drug discovery platform. ACADIA maintains a website atwww.acadia-pharm.com to which ACADIA regularly posts copies of itspress releases as well as additional information and through whichinterested parties can subscribe to receive email alerts.
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 progress and timing ofACADIA's drug discovery and development programs, including clinicaltrials and the results therefrom, and the benefits to be derived fromACADIA's product candidates, in each case including pimavanserin, aswell as the impact of the restructuring on its business andfinancials, its expected reduced cash used in operations in 2009 andthe length of its cash runway. These statements are only predictionsbased on current information and expectations and involve a number ofrisks and uncertainties. Actual events or results may differmaterially from those projected in any of such statements due tovarious factors, including the risks and uncertainties inherent indrug discovery, development and commercialization, and collaborationswith others, and the fact that past results of clinical trials may notbe indicative of further trial results. For a discussion of these andother factors, please refer to ACADIA's annual report on Form 10-K forthe year ended December 31, 2007 as well as other subsequent filingswith the Securities and Exchange Commission. You are cautioned not toplace 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.All forward-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.
ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)(Unaudited)Three Months Ended Nine Months EndedSeptember 30, September 30,—————————- —————————-2008 2007 2008 2007————- ————- ————- ————-Collaborative revenues $ 282 $ 1,957 $ 1,265 $ 5,972Operating expensesResearch and development(includes stock-basedcompensation of $346, $805,$1,141 and $2,414,respectively) (1) 13,397 16,909 44,604 40,664General and administrative(includes stock-basedcompensation of $446, $441,$1,298 and $1,188,respectively) (2) 2,974 2,941 9,428 9,257————- ————- ————- ————-Total operatingexpenses 16,371 19,850 54,032 49,921————- ————- ————- ————-Loss from operations (16,089) (17,893) (52,767) (43,949)Interest income (expense), net 475 1,848 2,486 4,598————- ————- ————- ————-Net loss $(15,614) $(16,045) $(50,281) $(39,351)========= ========= ========= =========Net loss per common share,basic and diluted $ (0.42) $ (0.43) $ (1.36) $ (1.14)========= ========= ========= =========Weighted average common sharesoutstanding, basic anddiluted 37,137 36,946 37,098 34,619========= ========= ========= =========(1) Research and development expenses included a charge of $1.7million in connection with ACADIA's strategic restructuring duringthe three and nine months ended September 30, 2008.(2) General and administrative expenses included a charge of $454,000in connection with ACADIA's strategic restructuring during the threeand nine months ended September 30, 2008.
ACADIA PHARMACEUTICALS INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands)(Unaudited)September 30, December 31,2008 2007(1)——————- ——————AssetsCash, cash equivalents, and investmentsecurities, available-for-sale $72,698 $126,858Prepaid expenses, receivables and othercurrent assets 2,837 4,395——————- ——————Total current assets 75,535 131,253Property and equipment, net 2,420 3,048Other assets 248 283——————- ——————Total assets $78,203 $134,584============= ============Liabilities and Stockholders' EquityCurrent liabilities $11,202 $ 19,287Long-term liabilities 759 1,363Stockholders' equity 66,242 113,934——————- ——————Total liabilities and stockholders'equity $78,203 $134,584============= ============(1) The condensed consolidated balance sheet at December 31, 2007 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.
CONTACT: ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director, Investor Relations
Thomas H. Aasen, Vice President andChief Financial Officer
858-558-2871
SOURCE: ACADIA Pharmaceuticals Inc.