ACADIA Pharmaceuticals (ACAD) Q4 2017 earnings summary

Executive summary

• NUPLAZID, launched in the U.S. in May 2016 for Parkinson’s disease psychosis, was the sole marketed product; 2017 net sales reached $124.9 million.

• Revenue growth accompanied a larger net loss as commercialization and clinical development costs rose; the accumulated deficit was $1.2 billion at year-end.

Financial highlights

• 2017 revenue was $124.9 million vs. $17.3 million in 2016; operating loss was $292.4 million vs. $272.8 million, and net loss was $289.4 million vs. $271.4 million.

• 2017 basic and diluted loss per share was $2.36 vs. $2.34 in 2016; Q4 revenue was $43.6 million, gross profit $41.1 million, net loss $68.9 million, and loss per share $0.55.

• R&D expense rose to $149.2 million from $99.3 million; SG&A increased to $255.1 million from $186.5 million.

• Net product sales were $124.9 million; cost of product sales was $9.1 million, or 7% of net sales, including a $0.7 million inventory write-down.

Outlook and guidance

• Cash, cash equivalents and investment securities of $341.3 million were expected to fund planned operations through at least the next 12 months; operating losses were expected to continue for at least several years.

• R&D and SG&A expenses were expected to increase as clinical studies, post-marketing commitments and NUPLAZID commercial activities continue.

• Top-line CLARITY Phase 2 results were expected in H2 2018.