ACADIA Pharmaceuticals (ACAD) Q4 2018 earnings summary

Executive summary

• 2018 strategy focused on growing NUPLAZID for Parkinson’s disease psychosis, expanding pimavanserin into additional CNS indications, and adding CNS pipeline assets through licensing.

• NUPLAZID remained the only marketed product; U.S. net product sales increased as unit volume and average gross selling price rose.

Financial highlights

• 2018 net product sales were $223.8M vs. $124.9M in 2017; unit sales rose ~43% YoY, with higher average gross selling price also contributing.

• Operating expenses were $471.3M vs. $417.3M; operating loss was $247.4M vs. $292.4M, and net loss was $245.2M vs. $289.4M.

• Net loss per share was $1.94 vs. $2.36 in 2017; R&D expense increased to $187.2M and SG&A to $265.8M.

• R&D included a $10.0M upfront trofinetide license payment; 2018 SG&A included $39.8M of NUPLAZID advertising expense.

Outlook and guidance

• Cash, cash equivalents and investment securities 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 were expected to increase as pimavanserin development, NUPLAZID commercialization and post-marketing studies continued.

• Planned milestones: initiate Phase 3 pimavanserin MDD program in H1 2019, report ENHANCE Phase 3 results mid-2019, and begin trofinetide Phase 3 study in H2 2019.