Acadia Pharmaceuticals Reports Fourth Quarter and Full Year 2023 Financial Results and Operating Overview

Rhea-AI Summary

Acadia Pharmaceuticals Inc. reported strong financial results for the fourth quarter and full year 2023, with total net product sales of $726.4 million, reflecting a 40% revenue growth. The company saw fourth quarter DAYBUE™ net product sales of $87.1 million and full year net product sales of $177.2 million, along with fourth quarter NUPLAZID® net product sales of $143.9 million and full year net product sales of $549.2 million. The company also highlighted advancements in its pipeline, including the initiation of Phase 3 trials for ACP-101 in Prader-Willi syndrome and ACP-204 in Alzheimer's disease psychosis. Acadia Pharmaceuticals is optimistic about its future prospects and is set to announce top-line results from the ADVANCE-2 study by the end of the first quarter.

Positive

• Strong revenue growth of 40% in 2023 driven by DAYBUE and NUPLAZID sales.
• Initiation of Phase 3 trials for ACP-101 and ACP-204 in Prader-Willi syndrome and Alzheimer's disease psychosis.
• Positive outlook for future growth and top-line results from the ADVANCE-2 study.
• Financial results show net income for the fourth quarter and a net loss for the full year 2023.
• Cash, cash equivalents, and investment securities totaled $438.9 million at the end of 2023.
• Full year 2024 financial guidance includes expected net product sales for DAYBUE and NUPLAZID.

Negative

• Net loss reported for the full year 2023 despite revenue growth.
• Increase in selling, general, and administrative expenses in 2023.
• Non-cash stock-based compensation expenses impacting net income for both quarters in 2023.
• Research and development expenses slightly decreased in 2023 compared to 2022.

Financial Analyst

The reported 40% revenue growth for Acadia Pharmaceuticals Inc. is a significant figure, notably higher than the average pharmaceutical industry growth rate, which typically hovers in the single-digit percentage range. This surge is primarily attributed to the successful launch of DAYBUE, a new treatment for Rett syndrome, which has contributed $177.2 million in net sales. This suggests a strong market demand and effective market penetration strategies by Acadia.

Moreover, the 6% growth in the NUPLAZID franchise, although modest, indicates sustained performance in an established product line. The financial results also show a net income for Q4 2023, contrasting with a net loss in the same period the previous year. This turnaround could be indicative of a strategic shift that has begun to yield profitability. However, the full-year net loss suggests that there are still challenges to overcome for sustained financial health.

Investors should note the forward-looking guidance for 2024, which projects continued growth in DAYBUE sales and a steady increase for NUPLAZID. These projections are critical for evaluating the company's potential future performance and the sustainability of its growth trajectory.

Market Research Analyst

Acadia's strategic investment in R&D, despite a slight decrease in expenses, reflects a commitment to innovation, particularly in areas of unmet medical needs such as Rett syndrome and Alzheimer’s disease psychosis. The initiation of Phase 3 trials for ACP-101 and ACP-204 signifies progress in the company's pipeline, which could have implications for future revenue streams and market positioning.

The biopharmaceutical market is highly competitive and Acadia's ability to advance its pipeline while managing R&D costs will be crucial in maintaining investor confidence. The anticipated top-line results from the ADVANCE-2 study could serve as a catalyst for the stock, depending on the outcome. Positive results could enhance the company's reputation for innovation and potentially lead to an increased market share.

Medical Research Analyst

The introduction of DAYBUE (trofinetide) represents a noteworthy advancement in the treatment of Rett syndrome, a rare neurological disorder with limited therapeutic options. The robust sales figures suggest that DAYBUE is meeting a significant unmet medical need. Additionally, the ongoing clinical trials for ACP-204 in Alzheimer's disease psychosis and ACP-101 in Prader-Willi syndrome highlight Acadia's focus on addressing complex psychiatric and neurological conditions.

Investors and stakeholders should monitor the progress of these trials closely, as they have the potential to disrupt existing treatment paradigms and contribute substantially to Acadia's future growth. The company's investment in these areas, despite the overall net loss, indicates a strategic prioritization of long-term value creation over immediate profitability.

- 2023 total net product sales of $726.4 million, reflecting 40% revenue growth.

- Fourth quarter DAYBUE^™ (trofinetide) net product sales of $87.1 million and full year 2023 net product sales of $177.2 million.

- Fourth quarter NUPLAZID^® (pimavanserin) net product sales of $143.9 million and full year 2023 net product sales of $549.2 million.

SAN DIEGO--(BUSINESS WIRE)-- Acadia Pharmaceuticals Inc. (Nasdaq: ACAD), today announced its financial results for the fourth quarter and full year ended December 31, 2023.

“2023 was a transformational year for Acadia that positioned us for continued success in 2024 and beyond. We achieved 40% revenue growth primarily driven by the launch of our second commercial product, DAYBUE for the treatment of Rett syndrome, in addition to 6% growth in our established NUPLAZID franchise,” said Steve Davis, Chief Executive Officer. “In the fourth quarter we significantly advanced our pipeline with the initiation of a Phase 3 trial of ACP-101 in Prader-Willi syndrome, as well as our seamless Phase 2 / Phase 3 program for ACP-204 in Alzheimer’s disease psychosis. We look forward to announcing top-line results from our ADVANCE-2 study of pimavanserin for the negative symptoms of schizophrenia by the end of the first quarter.”

Company Updates

• Anticipated to report top-line results from ADVANCE-2, a Phase 3 study evaluating pimavanserin for the treatment of the negative symptoms of schizophrenia, by the end of the first quarter.
• Initiated a pivotal Phase 3 COMPASS PWS study of ACP-101 (intranasal carbetocin) for the treatment of hyperphagia in Prader-Willi syndrome in the fourth quarter of 2023.
• Initiated a Phase 2 clinical trial of ACP-204 for the treatment of Alzheimer’s disease psychosis in the fourth quarter of 2023.
• Appointed Jennifer J. Rhodes as Executive Vice President, Chief Legal Officer and Secretary and Kimberly J. Manhard as Senior Vice President, Global Strategic Planning and Execution. Jennifer and Kimberly both joined Acadia’s executive leadership team.

Financial Results

Revenues

Total revenues, comprised of net product sales from NUPLAZID and DAYBUE, were $231.0 million for the fourth quarter of 2023 and $726.4 million for the full year 2023.

Net product sales of NUPLAZID were $143.9 million for the fourth quarter of 2023, an increase of 5% as compared to $136.5 million for the fourth quarter of 2022. Net product sales of NUPLAZID were $549.2 million for the full year 2023, an increase of 6% as compared to $517.2 million for the full year 2022. The increase in net product sales of NUPLAZID was due to growth in unit sales and a higher average net selling price in 2023 compared to 2022.

Net product sales of DAYBUE were $87.1 million for the fourth quarter of 2023 and $177.2 million for the full year 2023. During 2022, there were no net product sales of DAYBUE, which was launched in April 2023.

Research and Development

Research and development expenses for the fourth quarter of 2023 were $66.7 million, compared to $75.7 million for the same period of 2022. For the full years of 2023 and 2022, research and development expenses were $351.6 million and $361.6 million, respectively. The decrease in research and development expenses during 2023 was mainly due to trofinetide commercial supply build that was expensed prior to approval. There was a similar level of clinical spend and business development investment year over year.

Selling, General and Administrative

Selling, general and administrative expenses for the fourth quarter of 2023 were $111.5 million, compared to $104.4 million for the same period of 2022. For the full years of 2023 and 2022, selling, general and administrative expenses were $406.6 million and $369.1 million, respectively. The increase in selling, general and administrative expenses was primarily due to increased commercial costs associated with the DAYBUE launch, partially offset by reductions in expenses associated with NUPLAZID.

Net Income (Loss)

For the fourth quarter of 2023, Acadia reported net income of $45.8 million, or $0.28 per common share, compared to a net loss of $41.7 million, or $0.26 per common share, for the same period in 2022. The net income and loss for the fourth quarters of 2023 and 2022 included $18.0 million and $14.4 million, respectively, of non-cash stock-based compensation expense. For the full year 2023, Acadia reported a net loss of $61.3 million, or $0.37 per common share, compared to a net loss of $216.0 million, or $1.34 per common share, for the same period in 2022. The net losses for the full years of 2023 and 2022 included $66.4 million and $68.2 million, respectively, of non-cash stock-based compensation expense.

Cash and Investments

At December 31, 2023, Acadia’s cash, cash equivalents, and investment securities totaled $438.9 million, compared to $416.8 million at December 31, 2022.

Full Year 2024 Financial Guidance

• DAYBUE net product sales in the range of $370 to $420 million.
• NUPLAZID net product sales in the range of $560 to $590 million.
• GAAP R&D expense in the range of $305 to $325 million.
• GAAP SG&A expense in the range of $455 to $480 million.

Conference Call and Webcast Information

Acadia will host a conference call to discuss the fourth quarter and full year December 31, 2023 results today, Tuesday, February 27, 2024 at 1:30 p.m. PT/4:30 p.m. ET. The conference call will be available on Acadia’s website, Acadia.com, under the investors section and will be archived there until March 26, 2024. The conference call may also be accessed by registering for the call here. Once registered, participants will receive an email with the dial-in number and unique PIN number to use for accessing the call.

About NUPLAZID^® (pimavanserin)

Pimavanserin is a selective serotonin inverse agonist and antagonist preferentially targeting 5-HT2A receptors. These receptors are thought to play an important role in neuropsychiatric disorders. In vitro, pimavanserin demonstrated no appreciable binding affinity for dopamine (including D2), histamine, muscarinic, or adrenergic receptors. Pimavanserin was approved for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis by the U.S. Food and Drug Administration in April 2016 under the trade name NUPLAZID. In addition, Acadia is developing pimavanserin as a potential treatment for the negative symptoms of schizophrenia.

About DAYBUE^™ (trofinetide)

Trofinetide is a synthetic version of a naturally occurring molecule known as the tripeptide glycine-proline-glutamate (GPE). The mechanism by which trofinetide exerts therapeutic effects in patients with Rett syndrome is unknown. Trofinetide was approved for the treatment of Rett syndrome in adults and pediatric patients two years of age and older by the U.S. Food and Drug Administration in March 2023 under the trade name DAYBUE.

About Acadia Pharmaceuticals

Acadia is advancing breakthroughs in neuroscience to elevate life. For 30 years we have been working at the forefront of healthcare to bring vital solutions to people who need them most. We developed and commercialized the first and only FDA-approved drug to treat hallucinations and delusions associated with Parkinson’s disease psychosis and the first and only FDA-approved drug for the treatment of Rett syndrome. Our clinical-stage development efforts are focused on treating the negative symptoms of schizophrenia, Prader-Willi syndrome, Alzheimer’s disease psychosis and multiple other programs targeting neuropsychiatric symptoms in central nervous system disorders. For more information, visit us at Acadia.com and follow us on LinkedIn and Twitter.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact and can be identified by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions (including the negative thereof) intended to identify forward-looking statements. Forward-looking statements contained in this press release, include, but are not limited to, statements about: (i) our business strategy, objectives and opportunities; (ii) plans for, including timing, development and progress of commercialization or regulatory timelines for, NUPLAZID, DAYBUE and our product candidates; (iii) benefits to be derived from and efficacy of our products, including the potential advantages of NUPLAZID and DAYBUE; and (iv) our estimates regarding our future financial performance, profitability or capital requirements. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. Such risks, uncertainties and other factors include, but are not limited to: our dependency on the continued successful commercialization of NUPLAZID and DAYBUE and our ability to maintain or increase sales of NUPLAZID or DAYBUE; the costs of our commercialization plans and development programs, and the financial impact or revenues from any commercialization we undertake; our ability to obtain necessary regulatory approvals for our product candidates and, if and when approved, market acceptance of our products; our dependence on third-party collaborators, clinical research organizations, manufacturers, suppliers and distributors; the impact of competitive products and therapies; our ability to generate or obtain the necessary capital to fund our operations; our ability to grow, equip and train our specialized sales forces; our ability to manage the growth and complexity of our organization; our ability to maintain, protect and enhance our intellectual property; and our ability to continue to stay in compliance with applicable laws and regulations. Given the risks and uncertainties, you should not place undue reliance on these forward-looking statements. For a discussion of these and other risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ, please refer to our quarterly report on Form 10-Q for the quarter ended September 30, 2023 as well as our subsequent filings with the Securities and Exchange Commission from time to time, including our annual report on Form 10-K for the year ended December 31, 2023. The forward-looking statements contained herein are made as of the date hereof, and we undertake no obligation to update them after this date, except as required by law.

ACADIA PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
		Three Months Ended December 31,								Years Ended December 31,
		2023				2022				2023				2022
Revenues
Product sales, net		$	231,041			$	136,490			$	726,437			$	517,235
Total revenues			231,041				136,490				726,437				517,235
Operating expenses
Cost of product sales (1)(2)			17,891				2,413				41,638				10,166
Research and development (2)			66,741				75,738				351,619				361,575
Selling, general and administrative (2)			111,465				104,402				406,559				369,090
Total operating expenses			196,097				182,553				799,816				740,831
Income (loss) from operations			34,944				(46,063	)			(73,379	)			(223,596	)
Interest income, net			4,759				3,630				17,234				6,610
Other income			—				1,543				5,109				3,542
Income (loss) before income taxes			39,703				(40,890	)			(51,036	)			(213,444	)
Income tax expense (benefit)			(6,094	)			835				10,250				2,531
Net income (loss)		$	45,797			$	(41,725	)		$	(61,286	)		$	(215,975	)
Earnings (net loss) per share:
Basic		$	0.28			$	(0.26	)		$	(0.37	)		$	(1.34	)
Diluted		$	0.28			$	(0.26	)		$	(0.37	)		$	(1.34	)
Weighted average common shares outstanding:
Basic			164,812				161,988				163,819				161,683
Diluted			166,510				161,988				163,819				161,683
(1) Includes license fees and royalties
(2) Includes the following share-based compensation expenses
Cost of product sales, license fees and royalties		$	363			$	93			$	1,007			$	1,106
Research and development		$	4,707			$	3,432			$	17,408			$	22,580
Selling, general and administrative		$	12,953			$	10,889			$	48,006			$	44,515

ACADIA PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
		December 31, 2023				December 31, 2022
Assets
Cash, cash equivalents and investment securities		$	438,865			$	416,823
Accounts receivable, net			98,267				62,195
Interest and other receivables			4,083				885
Inventory			35,819				6,636
Prepaid expenses			39,091				21,398
Total current assets			616,125				507,937
Property and equipment, net			4,612				6,021
Operating lease right-of-use assets			51,855				55,573
Intangible assets, net			65,490				—
Restricted cash			5,770				5,770
Long-term inventory			4,628				4,924
Other assets			476				7,587
Total assets		$	748,956			$	587,812
Liabilities and stockholders’ equity
Accounts payable		$	17,543			$	12,746
Accrued liabilities			236,711				112,884
Total current liabilities			254,254				125,630
Operating lease liabilities			47,800				52,695
Other long-term liabilities			15,147				9,074
Total liabilities			317,201				187,399
Total stockholders’ equity			431,755				400,413
Total liabilities and stockholders’ equity		$	748,956			$	587,812

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240227648052/en/

Media Contact:

Acadia Pharmaceuticals Inc.

Deb Kazenelson

(818) 395-3043

media@acadia-pharm.com

Investor Contact:

Acadia Pharmaceuticals Inc.

Al Kildani

(858) 261-2872

ir@acadia-pharm.com

Acadia Pharmaceuticals Inc.

Jessica Tieszen

(858) 261-2950

ir@acadia-pharm.com

Source: Acadia Pharmaceuticals Inc.

FAQ

What were Acadia Pharmaceuticals' total net product sales for the full year 2023?

Acadia Pharmaceuticals reported total net product sales of $726.4 million for the full year 2023.

What were the net product sales of NUPLAZID for the full year 2023?

NUPLAZID net product sales were $549.2 million for the full year 2023.

What Phase 3 trials did Acadia initiate in 2023?

Acadia initiated Phase 3 trials for ACP-101 in Prader-Willi syndrome and ACP-204 in Alzheimer's disease psychosis.

When will Acadia announce top-line results from the ADVANCE-2 study?

Acadia is set to announce top-line results from the ADVANCE-2 study by the end of the first quarter.

What was Acadia's net income for the fourth quarter of 2023?

Acadia reported net income of $45.8 million for the fourth quarter of 2023.

How much cash and investments did Acadia have at the end of 2023?

Acadia had cash, cash equivalents, and investment securities totaling $438.9 million at the end of 2023.

What is Acadia Pharmaceuticals' financial guidance for full year 2024?

For full year 2024, Acadia expects DAYBUE net product sales in the range of $370 to $420 million and NUPLAZID net product sales in the range of $560 to $590 million.