ACADIA Pharmaceuticals Inc. (ACAD) Bundle
A Brief History of ACADIA Pharmaceuticals Inc.
Company Formation and Early Years
ACADIA Pharmaceuticals Inc. was founded in 1993, focusing on innovative therapies to address unmet medical needs in central nervous system disorders. The company went public on the NASDAQ in 1997, trading under the ticker symbol ACAD.
Key Product Developments
ACADIA's first major success came with the development of NUPLAZID (pimavanserin), which received FDA approval in April 2016 for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis. This marked a significant milestone as it was the first drug approved specifically for this indication.
Recent Financial Performance
As of September 30, 2024, ACADIA reported net product sales of $698.2 million for the nine months ended September 30, 2024, compared to $495.4 million for the same period in 2023. The growth was primarily driven by increased sales of both NUPLAZID and the recently launched DAYBUE (trofinetide).
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Sales | $250.4 million | $211.7 million | +18.3% |
| Net Income (Loss) | $32.8 million | ($65.2 million) | Improvement |
| Research & Development Expenses | $66.6 million | $157.0 million | -57.6% |
| Selling, General & Administrative Expenses | $133.3 million | $97.9 million | +36.2% |
Product Launch and Pipeline Expansion
DAYBUE was launched in March 2023 for the treatment of Rett syndrome, contributing significantly to revenue growth. In the nine months ended September 30, 2024, DAYBUE's sales reached $251.7 million, compared to $90.1 million in the same period of 2023.
Cash Flow and Liquidity
As of September 30, 2024, ACADIA had $565.3 million in cash, cash equivalents, and investment securities, up from $438.9 million at the end of 2023. The increase was primarily due to cash provided by operating activities, which totaled $117.3 million for the nine months ended September 30, 2024, compared to net cash used in operating activities of $68.7 million for the same period in 2023.
Future Outlook
ACADIA continues to invest in its pipeline, focusing on additional indications for existing products and new therapies. The company anticipates making milestone payments of up to $3.4 billion in the aggregate for candidates in its pipeline, with significant payments related to its collaboration with Neuren Pharmaceuticals.
| Key Upcoming Milestones | Expected Date | Amount ($ million) |
|---|---|---|
| Payment to Neuren for Trofinetide | 60 days post-invoice after Dec 31, 2024 | 50.0 |
| Potential future royalties from DAYBUE | Ongoing | Tiered, escalating royalties |
Stock Performance
As of late 2024, ACADIA's stock price showed volatility but demonstrated resilience with a recovery in net income. The company reported earnings per share of $0.20 for Q3 2024, compared to a loss of $0.40 per share in Q3 2023.
| Stock Performance | Q3 2024 | Q3 2023 |
|---|---|---|
| Earnings per Share (EPS) | $0.20 | ($0.40) |
| Shares Outstanding | 165.974 million | 164.234 million |
A Who Owns ACADIA Pharmaceuticals Inc. (ACAD)
Major Shareholders
As of October 29, 2024, the total shares of ACADIA Pharmaceuticals Inc. common stock outstanding are 166,391,891 shares.
Institutional Ownership
Institutional investors hold a significant portion of ACAD's shares. The following table summarizes the major institutional shareholders and their respective ownership stakes:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 12,524,640 | 7.53% |
| BlackRock Inc. | 10,321,789 | 6.20% |
| FMR LLC (Fidelity) | 9,879,245 | 5.95% |
| State Street Corporation | 8,490,480 | 5.10% |
| Geode Capital Management, LLC | 5,264,789 | 3.16% |
Insider Ownership
Insiders also maintain a portion of the company's shares. The following table outlines the insider ownership as of September 30, 2024:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mark C. Schneyer | Chief Financial Officer | 500,000 | 0.30% |
| Stephen Davis | President & CEO | 350,000 | 0.21% |
| Other Executives | Various | 1,200,000 | 0.72% |
Stockholder Equity
As of September 30, 2024, ACADIA Pharmaceuticals reported total stockholders' equity of $577,180,000, which reflects the company's financial health and investment potential.
Recent Changes in Ownership
In November 2024, ACADIA Pharmaceuticals entered into a definitive asset purchase agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) for $150 million. This transaction is expected to influence future ownership dynamics as it may lead to reinvestment in growth initiatives.
Market Trends Impacting Ownership
The market for biopharmaceuticals, particularly in the CNS disorder sector, is rapidly evolving. As of September 30, 2024, ACADIA's net product sales reached $250.4 million, showcasing a year-over-year increase. This growth may attract further institutional investment and retain current shareholders' confidence.
ACADIA Pharmaceuticals Inc. (ACAD) Mission Statement
Corporate Mission
ACADIA Pharmaceuticals Inc. is dedicated to developing innovative medicines that address unmet medical needs in central nervous system (CNS) disorders and rare diseases. The company aims to improve the quality of life for patients through the commercialization of its products, including NUPLAZID and DAYBUE, while continuing to advance its pipeline of potential therapies.
Strategic Goals
- Focus on the development and commercialization of treatments for CNS disorders.
- Expand the portfolio of product candidates to include therapies for rare diseases.
- Enhance patient access to existing therapies through targeted marketing and education initiatives.
Recent Developments
As of September 30, 2024, ACADIA reported an accumulated deficit of approximately $2.3 billion, reflecting substantial investments in research and development. In March 2023, the FDA approved DAYBUE for the treatment of Rett syndrome, following the earlier approval of NUPLAZID in April 2016 for Parkinson’s disease psychosis. This strategic focus on CNS disorders is pivotal to the company's mission.
Financial Overview
In the three months ended September 30, 2024, ACADIA reported net product sales of $250.4 million, an increase from $211.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $698.2 million, compared to $495.4 million for the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Product Sales | $250.4 million | $211.7 million | $698.2 million | $495.4 million |
| Cost of Product Sales | $18.9 million | $14.6 million | $60.0 million | $23.7 million |
| Research and Development Expenses | $66.6 million | $157.0 million | $202.5 million | $284.9 million |
| Selling, General and Administrative Expenses | $133.3 million | $97.9 million | $358.3 million | $295.1 million |
| Net Income (Loss) | $32.8 million | $(65.2 million) | $82.7 million | $(107.1 million) |
Market Position and Future Outlook
ACADIA's strategic focus on CNS disorders is reflected in its robust pipeline, including the development of ACP-101 for Prader-Willi syndrome and ACP-204 for Alzheimer's disease psychosis. The company continues to explore opportunities for expanding its market presence and enhancing shareholder value.
Conclusion
ACADIA Pharmaceuticals is committed to improving patient outcomes through innovative therapies while maintaining a strong financial foundation to support ongoing and future developments.
How ACADIA Pharmaceuticals Inc. (ACAD) Works
Business Overview
ACADIA Pharmaceuticals Inc. is a biopharmaceutical company focused on the development and commercialization of innovative medicines targeting central nervous system (CNS) disorders and rare diseases. The company's primary products include NUPLAZID and DAYBUE.
Product Portfolio
NUPLAZID (pimavanserin) was approved by the FDA in April 2016 for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis (PDP). It became available for prescription in the United States in May 2016. DAYBUE (trofinetide) received FDA approval in March 2023 for the treatment of Rett syndrome and was launched in April 2023.
Financial Performance
As of September 30, 2024, ACADIA reported net product sales of $698.2 million for the nine months ended September 30, 2024, compared to $495.4 million for the same period in 2023.
| Product | Net Product Sales (9 months ended September 30, 2024) | Net Product Sales (9 months ended September 30, 2023) |
|---|---|---|
| NUPLAZID | $446.5 million | $405.3 million |
| DAYBUE | $251.7 million | $90.1 million |
Cost of Product Sales
The cost of product sales for the nine months ended September 30, 2024, was $60.0 million, representing approximately 9% of net product sales. This is an increase from $23.7 million, or 5% of net product sales, for the same period in 2023. The rise in costs was primarily attributed to increased license fees and royalties for DAYBUE, which amounted to $35.2 million compared to $11.7 million in the previous year.
Research and Development Expenses
Research and development (R&D) expenses decreased to $202.5 million for the nine months ended September 30, 2024, from $284.9 million in the same period of 2023. This decline was mainly due to reduced business development payments; the previous year included a $100 million payment to Neuren for the expanded license agreement for trofinetide.
| Expense Type | R&D Expenses (9 months ended September 30, 2024) | R&D Expenses (9 months ended September 30, 2023) |
|---|---|---|
| Total R&D Expenses | $202.5 million | $284.9 million |
| Stock-based Compensation | $11.7 million | $12.7 million |
Selling, General, and Administrative Expenses
Selling, general, and administrative (SG&A) expenses increased to $358.3 million for the nine months ended September 30, 2024, compared to $295.1 million for the same period in 2023. The increase was primarily driven by costs related to marketing initiatives for DAYBUE and the transition costs associated with leadership changes.
Liquidity and Capital Resources
As of September 30, 2024, ACADIA's cash, cash equivalents, and investment securities totaled $565.3 million. The company anticipates that these resources will be sufficient to fund operations through at least the next twelve months, although future capital requirements may arise due to ongoing development activities.
Income and Earnings
For the nine months ended September 30, 2024, ACADIA reported net income of $82.7 million, an improvement from a net loss of $107.1 million in the same period of 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $32.8 million | $(65.2 million) |
| Earnings Per Share (Basic) | $0.20 | $(0.40) |
Market and Future Outlook
ACADIA continues to focus on expanding its product offerings and pipeline, particularly in the CNS disorders space. The company’s ability to maintain profitability will depend significantly on the ongoing success of NUPLAZID and DAYBUE in the market and the advancement of its early-stage pipeline programs.
How ACADIA Pharmaceuticals Inc. (ACAD) Makes Money
Revenue Sources
ACADIA Pharmaceuticals primarily generates revenue through the sale of its pharmaceutical products, specifically NUPLAZID and DAYBUE.
Net Product Sales
For the nine months ended September 30, 2024, ACADIA reported net product sales of:
- NUPLAZID: $446.5 million
- DAYBUE: $251.7 million
This results in total net product sales of $698.2 million, compared to $495.4 million for the same period in 2023, reflecting a significant increase driven by growth in unit sales and higher average selling prices.
| Product | Net Product Sales (2024) | Net Product Sales (2023) | Change ($) |
|---|---|---|---|
| NUPLAZID | $446.5 million | $405.3 million | $41.2 million |
| DAYBUE | $251.7 million | $90.1 million | $161.6 million |
| Total | $698.2 million | $495.4 million | $202.8 million |
Cost of Product Sales
The cost of product sales for the nine months ended September 30, 2024, was $60.0 million, representing approximately 9% of net product sales. This was an increase from $23.7 million (5% of net sales) in 2023. The increase in costs was mainly due to higher license fees and royalties associated with DAYBUE, which were $35.2 million in 2024 compared to $11.7 million in 2023.
Research and Development Expenses
Research and development (R&D) expenses decreased to $202.5 million for the nine months ended September 30, 2024, down from $284.9 million in 2023. This reduction was attributed to decreased business development payments, which included a $100 million payment made in 2023 to Neuren under an expanded license agreement.
| Expense Type | 2024 (Nine Months) | 2023 (Nine Months) | Change ($) |
|---|---|---|---|
| Research and Development | $202.5 million | $284.9 million | ($82.4 million) |
Selling, General and Administrative Expenses
Selling, general and administrative (SG&A) expenses increased to $358.3 million for the nine months ended September 30, 2024, compared to $295.1 million in 2023. The increase was primarily driven by costs related to a consumer activation program for NUPLAZID and transition costs from executive changes.
Net Income
For the nine months ended September 30, 2024, ACADIA reported a net income of $82.7 million, a significant improvement from a net loss of $107.1 million in the same period in 2023. This reflects the company’s improved revenue generation capabilities and cost management.
| Financial Metric | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Net Income (Loss) | $82.7 million | ($107.1 million) | $189.8 million |
Future Revenue Expectations
ACADIA anticipates continued revenue growth from both NUPLAZID and DAYBUE, with expectations of further increases in product sales as they expand their market presence and product offerings. The company’s financial strategy includes significant investments in R&D to support pipeline development, which may impact profitability in the near term but is essential for long-term growth.
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Resources:
- ACADIA Pharmaceuticals Inc. (ACAD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ACADIA Pharmaceuticals Inc. (ACAD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ACADIA Pharmaceuticals Inc. (ACAD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.