Company Overview - Acadia Pharmaceuticals has experienced an 11.1% decline in share price over the past month, underperforming the S&P 500 [1] - The most recent earnings report indicates a significant downward trend in estimates, with a consensus estimate shift of -62.99% [2] Performance Metrics - Acadia holds a Growth Score of B, but has a low Momentum Score of F, while achieving a Value Score of B, placing it in the top 40% for this investment strategy [3] - The aggregate VGM Score for Acadia is B, which is relevant for investors not focused on a single strategy [3] Outlook - The overall trend for Acadia's estimates is downward, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] Industry Comparison - Acadia is part of the Zacks Medical - Biomedical and Genetics industry, where Halozyme Therapeutics has seen an 11.8% increase in share price over the past month [5] - Halozyme Therapeutics reported revenues of $298.01 million for the last quarter, reflecting a year-over-year growth of +29.6%, with an EPS of $1.26 compared to $0.82 a year ago [6] - For the current quarter, Halozyme is expected to report earnings of $0.98 per share, indicating a year-over-year change of +24.1% [6] - Halozyme also holds a Zacks Rank of 3 (Hold) and has a VGM Score of B [7]

Company Performance - Acadia Pharmaceuticals reported fourth-quarter earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.28 per share a year ago [1] - The company posted GAAP earnings per share of 86 cents for the quarter [1] - The earnings surprise for this quarter was -10.53%, while the previous quarter saw a positive surprise of 53.85% with actual earnings of $0.20 per share against an expected $0.13 [2] Revenue Insights - Acadia's revenues for the quarter ended December 2024 were $259.6 million, exceeding the Zacks Consensus Estimate by 1.79%, and up from $231.04 million year-over-year [3] - The company has surpassed consensus revenue estimates three times over the last four quarters [3] Market Performance - Acadia shares have increased by approximately 3.6% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [4] - The stock's immediate price movement will depend on management's commentary during the earnings call [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $235.58 million, and for the current fiscal year, it is $0.76 on revenues of $1.04 billion [8] - The estimate revisions trend for Acadia is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - Acadia operates within the Medical - Biomedical and Genetics industry, which is currently ranked in the top 24% of over 250 Zacks industries [9] - The performance of Acadia's stock may be influenced by the overall outlook for the industry, as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by a factor of more than 2 to 1 [9]

Core Viewpoint - Acadia Pharmaceuticals reported mixed financial results for Q4 2024, with earnings per share missing estimates but total revenues exceeding expectations, driven by the performance of its products Nuplazid and Daybue [1][2][9]. Financial Performance - Acadia reported Q4 2024 earnings of 17 cents per share, below the Zacks Consensus Estimate of 19 cents, while GAAP earnings per share were 86 cents [1]. - Total revenues for Q4 2024 reached $259.6 million, surpassing the Zacks Consensus Estimate of $255 million, marking a 12% year-over-year increase [2][4]. - For the full year 2024, Acadia's total revenues were $957.8 million, a 32% increase year over year, exceeding the Zacks Consensus Estimate of $953.2 million [9]. Product Performance - Nuplazid generated revenues of $162.9 million in Q4 2024, a 13% increase year over year, outperforming the Zacks Consensus Estimate of $160.4 million [5]. - Daybue recorded net product sales of $96.7 million in Q4 2024, an 11% year-over-year increase, also beating the Zacks Consensus Estimate of $94.4 million [6]. Expenses - Research and development (R&D) expenses for Q4 2024 were $100.7 million, up 51% year over year, primarily due to increased costs from clinical-stage programs [7]. - Selling, general and administrative (SG&A) expenses were $130.1 million, a 17% increase year over year, attributed to higher marketing costs for Nuplazid and Daybue [8]. Financial Outlook - For 2025, Acadia expects total revenues from U.S. sales to be between $1.030 billion and $1.095 billion, with Nuplazid sales projected at $650 million to $690 million and Daybue sales expected to be between $380 million and $405 million [10]. - R&D expenses for 2025 are projected to be between $310 million and $330 million, while SG&A expenses are expected to range from $535 million to $565 million [12]. Regulatory and Development Updates - Acadia has a regulatory filing for Daybue in the EU under review, with approval expected in Q1 2026 [13]. - The company plans to enroll the last patient in the phase III COMPASS PWS study for ACP-101 in Q4 2025, with top-line data anticipated in H1 2026 [14]. - Acadia is also preparing to initiate a mid-stage study for ACP-204 targeting Alzheimer's disease psychosis in Q1 2026 [15]. - The company signed a license agreement with Saniona to develop ACP711 for essential tremor, with plans for a mid-stage study in 2026 [16][17].

Group 1 - The biotech forum has seen significant discussions around profitable buy-write or covered call strategies on selected biotech stocks in recent months [1] - ACADIA Pharmaceuticals reported its fourth quarter results and provided initial guidance for FY2025, indicating a positive outlook for the upcoming year [2] - The company also shared an encouraging update regarding its pipeline, suggesting potential growth opportunities [2] Group 2 - The investing group, The Biotech Forum, offers a model portfolio featuring 12-20 high upside biotech stocks, along with live discussions on trade ideas and weekly market commentary [2]

[Business Overview](index=5&type=section&id=Item%201.%20Business.) ACADIA Pharmaceuticals specializes in CNS and rare diseases, commercializing NUPLAZID and DAYBUE, and advancing its pipeline [Company Overview and Strategy](index=5&type=section&id=Company%20Overview) ACADIA Pharmaceuticals is a biopharmaceutical company specializing in central nervous system (CNS) disorders and rare diseases. Its commercial portfolio is led by NUPLAZID for Parkinson's disease psychosis (PDP) and DAYBUE for Rett syndrome, which together generated $957.8 million in net sales in 2024. The company's strategy focuses on maximizing the growth of its commercial products, expanding internationally, advancing its late-stage pipeline, and investing in core capabilities like precision medicine and data innovation - The company has two core franchises: neuroscience (NUPLAZID) and neuro-rare diseases (DAYBUE)[20](index=20&type=chunk) Annual Net Product Sales | Year | Net Product Sales (USD) | | :--- | :--- | | 2024 | $957.8 million | | 2023 | $726.4 million | - Key strategic elements include: - Maximizing NUPLAZID growth in the U.S. - Driving new patient adoption for DAYBUE in the U.S. - Expanding trofinetide (DAYBUE) to markets outside the U.S., including Europe and Japan. - Advancing late-stage candidates like ACP-101 (PWS) and ACP-204 (ADP). - Investing in precision medicine, data innovation (AI/ML), globalization, and patient empowerment[27](index=27&type=chunk)[28](index=28&type=chunk) [Product Portfolio and Clinical Pipeline](index=8&type=section&id=Our%20Pipeline) The company's portfolio is led by two commercial products, NUPLAZID and DAYBUE. The pipeline includes late-stage candidates ACP-101 for Prader-Willi syndrome (Phase 3), ACP-204 for Alzheimer's disease psychosis (Phase 2), and ACP-711 for essential tremor (Phase 2 planned). Early-stage programs target conditions like treatment-resistant depression and include collaborations on RNA-based medicines [NUPLAZID (pimavanserin)](index=8&type=section&id=NUPLAZID%20(pimavanserin)%20as%20a%20Treatment%20for%20Parkinson's%20Disease%20Psychosis) NUPLAZID is the only FDA-approved drug for hallucinations and delusions associated with Parkinson's disease psychosis (PDP). It is a selective serotonin inverse agonist targeting the 5-HT2A receptor. ACADIA estimates it holds approximately 20% of the U.S. market where 130,000 PDP patients are treated annually with an atypical antipsychotic. Recent Phase 3 trials for negative symptoms of schizophrenia and a Phase 2 trial for autism-related irritability did not meet their endpoints, and the company does not plan further development in other indications - NUPLAZID is the first and only drug approved by the FDA for treating hallucinations and delusions associated with PDP[30](index=30&type=chunk)[33](index=33&type=chunk) - The company estimates that of the 130,000 PDP patients treated with an atypical antipsychotic annually in the U.S., approximately **20%** are treated with NUPLAZID[31](index=31&type=chunk) - The company does not intend to further explore pimavanserin in additional indications following unsuccessful trials in schizophrenia and autism[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) [DAYBUE (trofinetide)](index=10&type=section&id=DAYBUE%20(trofinetide)%20as%20a%20Treatment%20for%20Rett%20Syndrome) DAYBUE is the first and only drug approved for Rett syndrome, a rare neurological disorder. It was approved in the U.S. in March 2023 and Canada in October 2024. A marketing application was submitted to the EMA in January 2025. The company estimates a prevalent population of 6,000 to 9,000 people with Rett Syndrome in the U.S. Following approval, the company received and sold a Priority Review Voucher (PRV) for $150 million - DAYBUE is the first and only drug approved for the treatment of Rett syndrome[40](index=40&type=chunk) - The company estimates there are **6,000 to 9,000** people with Rett Syndrome in the U.S[39](index=39&type=chunk) - A Rare Pediatric Disease Priority Review Voucher (PRV) was granted and subsequently sold for **$150 million** in December 2024[41](index=41&type=chunk) [Late-Stage and Early-Stage Pipeline](index=11&type=section&id=ACP-101%20as%20a%20Treatment%20for%20Prader-Willi%20syndrome) The late-stage pipeline features ACP-101 for Prader-Willi syndrome (PWS), currently in a Phase 3 study with results expected in H1 2026. ACP-204 is in a Phase 2 study for Alzheimer's disease psychosis (ADP), with results expected mid-2026, and a Phase 2 study in Lewy Body Dementia is planned for Q3 2025. ACP-711, licensed from Saniona, is slated for a Phase 2 study in essential tremor in 2026. Early-stage programs include candidates for depression and rare CNS indications Late-Stage Pipeline Status | Candidate | Indication | Phase | Expected Milestone | | :--- | :--- | :--- | :--- | | **ACP-101** | Prader-Willi Syndrome (PWS) | Phase 3 | Top-line results in H1 2026 | | **ACP-204** | Alzheimer's Disease Psychosis (ADP) | Phase 2 | Top-line results around mid-2026 | | **ACP-204** | Lewy Body Dementia with Psychosis (LBDP) | Phase 2 | Initiation in Q3 2025 | | **ACP-711** | Essential Tremor | Phase 2 | Initiation in 2026 | - Early-stage programs include ACP-211 (depression), ACP-2591 (Rett/Fragile X), ACP-271 (neurology), and a collaboration with Stoke Therapeutics on ASO programs for rare genetic neurodevelopmental diseases[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) [Competition](index=14&type=section&id=Competition) ACADIA faces intense competition. NUPLAZID competes with the off-label use of various generic antipsychotics. DAYBUE competes with off-label medications for Rett syndrome symptoms and faces potential competition from pipeline candidates by Anavex, Taysha Gene Therapies, and Neurogene. The company also competes with larger, more experienced pharmaceutical companies with greater resources - NUPLAZID's primary competition is the off-label use of generic antipsychotics like quetiapine, clozapine, and risperidone[65](index=65&type=chunk) - DAYBUE faces competition from off-label symptom treatments and potential future therapies from Anavex (Anavex 2-73) and gene therapies from Taysha and Neurogene[66](index=66&type=chunk) - The company competes with larger firms that have significantly greater capital, R&D resources, manufacturing capabilities, and sales and marketing experience[67](index=67&type=chunk)[68](index=68&type=chunk) [Intellectual Property](index=15&type=section&id=Intellectual%20Property) The company maintains a robust patent portfolio to protect its products and pipeline. Key composition of matter patents for pimavanserin (NUPLAZID) expire in 2030, with formulation patents extending to 2038. The use patent for trofinetide (DAYBUE) for Rett syndrome expires in 2032, potentially extendable to 2036. Patents for pipeline candidates ACP-101, ACP-204, and ACP-711 extend into the late 2030s Key Patent Expiration Timelines | Product/Candidate | Patent Type | Expiration Year(s) | | :--- | :--- | :--- | | **Pimavanserin (NUPLAZID)** | Composition of Matter | 2030 | | | Formulations | 2037-2038 | | **Trofinetide (DAYBUE)** | Use for Rett Syndrome | 2032 (extendable to 2036) | | **ACP-101** | Methods of Use | 2035-2039 | | **ACP-204** | Composition of Matter | 2038 | | **ACP-711** | Composition of Matter | 2039 | [Regulatory Environment](index=18&type=section&id=Government%20Regulation) The company's operations are subject to extensive regulation by the FDA in the U.S. and comparable authorities abroad, covering drug development, manufacturing (cGMP), marketing, and sales. Key U.S. healthcare laws include the Anti-Kickback Statute and the False Claims Act. The business is also impacted by healthcare reform like the ACA and the IRA, which introduces measures like Medicare drug price negotiation and inflation rebates, creating pricing and reimbursement pressures - The business is subject to rigorous regulation by the FDA and other global authorities, covering the entire product lifecycle from preclinical testing to post-marketing surveillance[82](index=82&type=chunk) - Sales are dependent on coverage and reimbursement from third-party payors, who are increasingly implementing cost-containment measures[94](index=94&type=chunk) - Healthcare reforms, particularly the Inflation Reduction Act (IRA), introduce significant pricing pressures through Medicare price negotiations and inflation-based rebates[100](index=100&type=chunk)[103](index=103&type=chunk) [Manufacturing, Sales, and Marketing](index=26&type=section&id=Manufacturing%20and%20Distribution) ACADIA employs an outsourced manufacturing strategy, contracting with third parties like Siegfried for pimavanserin API and Patheon for NUPLAZID and DAYBUE drug products. Distribution is managed through a limited network of specialty pharmacies and distributors. The company has dedicated U.S. sales forces for both NUPLAZID and DAYBUE, supported by marketing campaigns and patient support services via the Acadia Connect hub - The company outsources all manufacturing activities, with key partners including Siegfried, Patheon, Corden, and CoreRx[131](index=131&type=chunk)[133](index=133&type=chunk)[137](index=137&type=chunk) - NUPLAZID is sold through a limited number of specialty pharmacies and distributors, with four customers accounting for **73%** of its revenue in 2024[136](index=136&type=chunk) - DAYBUE is sold through a single wholesale distributor with specialty pharmacy services[141](index=141&type=chunk) - Separate, dedicated sales forces and marketing teams support the commercialization of NUPLAZID and DAYBUE in the U.S[143](index=143&type=chunk)[145](index=145&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors.) The company faces significant risks across product commercialization, pipeline development, financial stability, third-party reliance, intellectual property, and regulatory compliance [Product, Pipeline, and Commercial Risks](index=29&type=section&id=Risks%20Related%20to%20Our%20Products%20and%20Product%20Candidates) The company's prospects are highly dependent on the commercial success of NUPLAZID and DAYBUE. Risks include failure to maintain or grow sales, challenges in gaining market acceptance among physicians and patients, inability to secure regulatory approval for trofinetide outside North America, and unfavorable reimbursement decisions from payors. The drug development process is inherently long, expensive, and high-risk, with no guarantee of success in clinical trials or obtaining regulatory approval for pipeline candidates - The company's financial prospects are highly dependent on the successful commercialization of its two approved products, NUPLAZID and DAYBUE[154](index=154&type=chunk) - Market acceptance may be limited by factors such as physician and patient perceptions of safety and efficacy, the NUPLAZID boxed warning, and competition from off-label alternatives[157](index=157&type=chunk)[162](index=162&type=chunk) - Failure to obtain regulatory approval for trofinetide in key markets like the EU and Japan would limit commercial revenues[164](index=164&type=chunk) - Drug development is unpredictable, with a high risk of failure. The company has experienced recent clinical trial failures with pimavanserin and there is no guarantee that current pipeline candidates will succeed[180](index=180&type=chunk)[182](index=182&type=chunk) [Business and Financial Risks](index=39&type=section&id=Risks%20Related%20to%20Our%20Business) The company has a history of net losses, with an accumulated deficit of $2.2 billion as of year-end 2024, and may require additional financing to fund future operations and acquisitions. Business success is also contingent on attracting and retaining key personnel, including the new CEO. Other risks include potential limitations on the use of net operating loss carryforwards, challenges from tax authorities regarding intercompany transactions, and adverse impacts from unfavorable global economic conditions - The company has a history of net losses, with an accumulated deficit of approximately **$2.2 billion** as of December 31, 2024[196](index=196&type=chunk) - Future operations, R&D, and commercial efforts may require additional financing, which may not be available on acceptable terms[198](index=198&type=chunk) - The ability to use net operating loss (NOL) carryforwards to offset future taxable income may be limited due to past and potential future "ownership changes" under Section 382 of the tax code[206](index=206&type=chunk) - The success of the company's strategy depends on its ability to attract, retain, and motivate key personnel, and successfully integrate its new CEO[191](index=191&type=chunk)[192](index=192&type=chunk) [Third-Party and Manufacturing Risks](index=46&type=section&id=Risks%20Related%20to%20Our%20Relationships%20with%20Third%20Parties) ACADIA heavily relies on third parties for critical functions. This includes collaborations for pipeline development (e.g., Neuren, Stoke), CROs for conducting clinical trials, and a network of contract manufacturers for producing its commercial products and clinical trial materials. Any failure by these partners to perform, comply with regulations (like cGMP), or disruptions in the supply chain could significantly delay development and commercialization efforts - The company depends on collaborations with third parties like Neuren and Stoke to develop key product candidates[215](index=215&type=chunk) - All manufacturing is outsourced to third parties (e.g., Patheon, Siegfried), and any failure to comply with cGMP or supply disruptions could halt production and sales[227](index=227&type=chunk)[230](index=230&type=chunk) - The company relies on CROs and medical institutions to conduct clinical trials, and any delays or performance issues from these parties can increase costs and hinder regulatory approval[222](index=222&type=chunk) [Intellectual Property Risks](index=50&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) The company's commercial success is dependent on its ability to obtain, maintain, and defend its intellectual property. Key risks include patent challenges from generic competitors, such as the ongoing ANDA litigation for NUPLAZID, the possibility of patents being invalidated through post-issuance review proceedings, and the potential for trade secrets to be inadequately protected. The complex and uncertain nature of patent law in the biotechnology sector poses a continuous threat to the exclusivity of its products - The company faces ongoing patent litigation from generic drug manufacturers that have filed Abbreviated New Drug Applications (ANDAs) for NUPLAZID[235](index=235&type=chunk) - Patents may be challenged and invalidated through administrative proceedings like Inter Partes Review (IPR), which have a lower burden of proof than district court litigation[243](index=243&type=chunk)[244](index=244&type=chunk) - Confidentiality agreements may not adequately prevent the disclosure of trade secrets, which are critical for protecting proprietary technology and processes[241](index=241&type=chunk) [Regulatory, Legal, and Cybersecurity Risks](index=54&type=section&id=Risks%20Related%20to%20Government%20Regulation%20and%20Our%20Industry) The company operates in a highly regulated industry and faces risks from healthcare reform measures like the ACA and IRA, which could negatively impact drug pricing and profitability. It is subject to strict fraud and abuse laws, and failure to comply can result in substantial penalties. Evolving data privacy laws (e.g., GDPR, CCPA) and the constant threat of cybersecurity incidents pose significant operational and financial risks. Additionally, the stock price is highly volatile and subject to market conditions and company performance - Healthcare reform, particularly the Inflation Reduction Act (IRA), could negatively impact profitability through government price negotiations and inflation rebates[251](index=251&type=chunk)[253](index=253&type=chunk)[255](index=255&type=chunk) - The company is subject to strict healthcare fraud and abuse laws (e.g., Anti-Kickback Statute, False Claims Act), and violations can lead to significant penalties and exclusion from federal programs[258](index=258&type=chunk)[260](index=260&type=chunk) - The company faces significant risks from cybersecurity threats and must comply with stringent, evolving data privacy laws in the U.S. and abroad, with failures leading to potential fines, litigation, and reputational harm[263](index=263&type=chunk)[291](index=291&type=chunk) - The company's stock price is highly volatile and can be influenced by clinical trial results, regulatory decisions, and financial performance[305](index=305&type=chunk) [Cybersecurity](index=68&type=section&id=Item%201C.%20Cybersecurity.) The company manages cybersecurity risks through a program overseen by its audit committee and key executives, employing internal controls and third-party expertise [Cybersecurity Risk Management and Governance](index=68&type=section&id=Risk%20management%20and%20strategy) The company has implemented an information security program to manage cybersecurity risks, overseen by the CIO, CCO, and the audit committee of the board. The program involves identifying and assessing threats, implementing mitigation measures (e.g., encryption, access controls, employee training), and utilizing third-party experts for services like penetration testing. The company's vendor management process includes assessing the cybersecurity risks of its partners. The board's audit committee is responsible for overseeing these risk management processes - The company's cybersecurity program is designed to identify, assess, and manage material risks to its information systems and data[315](index=315&type=chunk) - Oversight is provided by the audit committee of the board of directors, with day-to-day management handled by the CIO, CCO, and Director of Information Security[322](index=322&type=chunk)[323](index=323&type=chunk) - The company utilizes third-party service providers for functions like threat intelligence and penetration testing and has a vendor risk management program to assess third-party security[319](index=319&type=chunk)[320](index=320&type=chunk) [Legal Proceedings](index=69&type=section&id=Item%203.%20Legal%20Proceedings.) The company is involved in patent infringement lawsuits for NUPLAZID and securities litigation, with no material adverse effect currently anticipated [Patent and Securities Litigation](index=69&type=section&id=Patent%20Infringement) The company is engaged in multiple legal proceedings. This includes patent infringement lawsuits against several generic drug manufacturers (MSN, Aurobindo, Teva, Zydus) that filed ANDAs for NUPLAZID; some cases have been settled while others are ongoing. Additionally, ACADIA is defending against a securities class action, an opt-out lawsuit, and a shareholder derivative suit, all stemming from allegations related to the supplemental New Drug Application (sNDA) for pimavanserin in dementia-related psychosis. The company does not currently believe these matters will have a material adverse effect - The company is actively defending its NUPLAZID patents against generic challengers including MSN and Aurobindo, having previously settled with Hetero and Zydus[328](index=328&type=chunk)[329](index=329&type=chunk)[332](index=332&type=chunk)[334](index=334&type=chunk) - A securities class action alleges the company made misleading statements regarding the sNDA for pimavanserin for dementia-related psychosis. The court granted class certification in March 2024[336](index=336&type=chunk) - A related shareholder derivative suit has been stayed pending an investigation by the company's Demand Review Committee[338](index=338&type=chunk) - Management does not believe the pending litigation will have a material adverse effect, but is unable to estimate possible losses[339](index=339&type=chunk) [Management's Discussion and Analysis (MD&A)](index=75&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) The company achieved net income in 2024 from strong product sales and a PRV sale, enhancing liquidity and capital for future operations [Results of Operations](index=80&type=section&id=Results%20of%20Operations) For fiscal year 2024, the company reported net income of $226.5 million, a significant turnaround from a net loss of $61.3 million in 2023. This was driven by strong revenue growth and a $146.5 million gain from the sale of a Priority Review Voucher. Total net product sales grew 32% to $957.8 million, with NUPLAZID sales up 11% to $609.4 million and DAYBUE sales nearly doubling to $348.4 million. Operating expenses saw a decrease in R&D due to lower milestone payments, while SG&A increased to support commercial activities Financial Performance Comparison (2024 vs. 2023) | Metric | 2024 (in millions) | 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Net Product Sales** | **$957.8** | **$726.4** | **+31.8%** | | NUPLAZID Net Sales | $609.4 | $549.2 | +11.0% | | DAYBUE Net Sales | $348.4 | $177.2 | +96.6% | | Cost of Product Sales | $81.8 | $41.6 | +96.6% | | R&D Expenses | $303.2 | $351.6 | -13.8% | | SG&A Expenses | $488.4 | $406.6 | +20.1% | | Gain on Sale of Asset | $146.5 | $0.0 | N/A | | **Net Income (Loss)** | **$226.5** | **($61.3)** | **N/A** | - The increase in Cost of Product Sales was primarily driven by higher license fees and royalties for DAYBUE, which totaled **$51.8 million** in 2024 compared to **$21.8 million** in 2023[384](index=384&type=chunk) - R&D expenses decreased mainly due to a **$100.0 million** upfront payment to Neuren in 2023 under an expanded license agreement, which was not repeated in 2024[387](index=387&type=chunk) - SG&A expenses increased due to higher marketing costs for both NUPLAZID and DAYBUE, and investments to support the ex-U.S. commercialization of DAYBUE[388](index=388&type=chunk) [Liquidity and Capital Resources](index=84&type=section&id=Liquidity%20and%20Capital%20Resources) The company's financial position strengthened significantly, with cash, cash equivalents, and investment securities increasing to $756.0 million at the end of 2024 from $438.9 million at the end of 2023. The increase was primarily driven by positive cash flow from operations, which included proceeds from the sale of a PRV. The company believes its current capital is sufficient to fund planned operations for at least the next 12 months. Material future cash requirements include operating lease obligations of $59.4 million and potential milestone payments up to $4.0 billion, with a $50.0 million payment to Neuren due in early 2025 Cash Position | Date | Cash, Cash Equivalents, and Investment Securities (USD) | | :--- | :--- | | Dec 31, 2024 | $756.0 million | | Dec 31, 2023 | $438.9 million | - Net cash provided by operating activities was **$157.7 million** in 2024, a substantial increase from **$16.7 million** in 2023, largely due to higher revenues and the PRV sale[408](index=408&type=chunk) - The company has potential future milestone payment obligations of up to **$4.0 billion** related to its various licensing and collaboration agreements[405](index=405&type=chunk) - A milestone payment of **$50.0 million** became payable to Neuren after 2024 as trofinetide net revenue in North America exceeded **$250.0 million**[597](index=597&type=chunk) [Financial Statements and Supplementary Data](index=87&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) The company's 2024 financial statements, with an unqualified auditor's opinion, reflect significant growth and profitability, detailed by notes on accounting policies, commitments, and tax [Auditor's Report](index=89&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on the company's consolidated financial statements and the effectiveness of its internal control over financial reporting as of December 31, 2024. The auditor identified the estimation of Medicare Part D sales rebate accruals as a Critical Audit Matter due to the subjectivity of assumptions and the materiality of the amounts involved - The independent auditor, Ernst & Young LLP, provided an unqualified (clean) opinion on the financial statements and internal controls[425](index=425&type=chunk)[467](index=467&type=chunk) - A Critical Audit Matter was identified concerning the Medicare Part D sales rebate accruals, highlighting the complexity and subjective judgment required in estimating these liabilities[471](index=471&type=chunk)[473](index=473&type=chunk) [Consolidated Financial Statements](index=102&type=section&id=Consolidated%20Balance%20Sheets) The consolidated financial statements show significant growth and a return to profitability in 2024. Total assets grew to $1.19 billion from $749 million in 2023, driven by a large increase in cash and investments. The company recorded a net income of $226.5 million in 2024, compared to net losses in the prior two years. This was fueled by a 32% increase in net product sales to $957.8 million and a one-time gain on the sale of a non-financial asset Consolidated Statement of Operations Highlights (in thousands) | Line Item | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Product sales, net** | **$957,797** | **$726,437** | **$517,235** | | Total operating expenses | $727,003 | $799,816 | $740,831 | | Income (loss) from operations | $230,794 | ($73,379) | ($223,596) | | **Net income (loss)** | **$226,451** | **($61,286)** | **($215,975)** | | **Diluted EPS** | **$1.36** | **($0.37)** | **($1.34)** | Consolidated Balance Sheet Highlights (in thousands) | Line Item | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash, cash equivalents & investments | $755,993 | $438,865 | | Total Assets | $1,187,756 | $748,956 | | Total Liabilities | $454,963 | $317,201 | | Total Stockholders' Equity | $732,793 | $431,755 | [Notes to Consolidated Financial Statements](index=107&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes to the financial statements detail the company's significant accounting policies, particularly revenue recognition and the estimation of sales allowances like rebates and chargebacks. The notes also provide extensive detail on commitments and contingencies, including licensing agreements with Neuren, Stoke, and Saniona, which involve substantial potential future milestone and royalty payments. The income tax note discloses significant net operating loss carryforwards and a full valuation allowance against deferred tax assets - Revenue recognition involves significant estimates for variable consideration, including rebates for Medicare Part D and chargebacks for government contracts[519](index=519&type=chunk)[520](index=520&type=chunk)[521](index=521&type=chunk) - The company has significant future payment obligations under its licensing agreements, including up to **$4.0 billion** in potential milestones and tiered royalties on net sales[597](index=597&type=chunk) - As of Dec 31, 2024, the company had federal and state net operating loss (NOL) carryforwards of approximately **$130.2 million** and **$453.9 million**, respectively. A full valuation allowance is maintained against these deferred tax assets[586](index=586&type=chunk)[590](index=590&type=chunk) - Four customers accounted for **12%**, **13%**, **14%**, and **34%** of total gross revenues for the year ended December 31, 2024, indicating significant customer concentration[530](index=530&type=chunk)

Core Insights - Acadia Pharmaceuticals reported fourth-quarter 2024 earnings of 17 cents per share, missing the Zacks Consensus Estimate of 19 cents, and adjusted for a one-time sale of a Rare Pediatric Disease Priority Review Voucher [1] - Total revenues for the quarter were $259.6 million, exceeding the Zacks Consensus Estimate of $255 million, with significant contributions from its two marketed products, Nuplazid and Daybue [2][4] Financial Performance - Revenues from Nuplazid increased 13% year over year to $162.9 million, surpassing the Zacks Consensus Estimate of $160.4 million [5] - Daybue recorded net product sales of $96.7 million, up 11% year over year, also beating the Zacks Consensus Estimate of $94.4 million [6] - For the full year 2024, Acadia's total revenues reached $957.8 million, a 32% increase year over year, exceeding the Zacks Consensus Estimate of $953.2 million [9] Expense Overview - Research and development (R&D) expenses rose 51% year over year to $100.7 million, primarily due to increased costs from clinical-stage programs [7] - Selling, general and administrative (SG&A) expenses increased 17% year over year to $130.1 million, attributed to higher marketing costs for Nuplazid and Daybue [8] Future Outlook - Acadia expects total revenues from U.S. sales of its products in 2025 to range between $1.030 billion and $1.095 billion, with Nuplazid sales projected between $650 million and $690 million, and Daybue sales expected between $380 million and $405 million [10][12] - R&D expenses for 2025 are projected to be between $310 million and $330 million, while SG&A expenses are expected to be between $535 million and $565 million [12] Product Development Updates - A regulatory filing for Daybue to treat Rett syndrome in the EU is under review, with approval expected in Q1 2026 [13] - Acadia plans to enroll the last patient in the phase III COMPASS PWS study for ACP-101 in Q4 2025, with top-line data expected in H1 2026 [14] - The company anticipates initiating a mid-stage study for ACP-204 for Lewy Body dementia psychosis in Q3 2025 [15] - Acadia signed a worldwide license agreement with Saniona to develop ACP711 for essential tremor, with a mid-stage study planned for 2026 [16][17]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was $259.6 million, up 12% year-over-year. For the full year, total revenue reached $957.8 million, up 32% from the prior year [59] - DAYBUE net product sales in Q4 were $96.7 million, an 11% increase year-over-year, and full-year sales were $348.4 million, up 97% from $177.2 million in 2023 [60] - NUPLAZID net product sales in Q4 were $162.9 million, a 13% increase year-over-year, with full-year sales of $609.4 million, up 11% from $549.2 million in the prior year [61] Business Line Data and Key Metrics Changes - DAYBUE generated sales of $96.7 million in Q4, with a full-year total of $348.4 million, indicating strong growth driven by volume [12][60] - NUPLAZID achieved Q4 sales of $162.9 million, with full-year sales of $609.4 million, reflecting growth primarily from volume [35][61] Market Data and Key Metrics Changes - The company anticipates over $1 billion in revenue in the U.S. for 2025, driven by growth in both DAYBUE and NUPLAZID [8] - NUPLAZID's market share increased from 20% to 25% among patients receiving atypical antipsychotics for Parkinson's-related hallucinations and delusions [37][112] Company Strategy and Development Direction - The corporate strategy focuses on expanding neuroscience and neuro rare disease franchises, with plans to explore additional investments in rare diseases [11] - The company aims to achieve significant milestones in 2025 and 2026, including the anticipated approval of trofinetide in Europe [73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong financial results and a robust pipeline as key factors [7][8] - The company expects to see continued growth in both DAYBUE and NUPLAZID, with specific strategies to enhance market penetration and patient engagement [20][39] Other Important Information - The company plans to hold its first R&D Day on June 25, 2025, to provide more insights into its pipeline and development programs [57] - The cash balance at the end of 2024 was $756 million, significantly up from $438.9 million at the end of 2023, primarily due to operational cash flows and the sale of a priority review voucher [63] Q&A Session Summary Question: How should we think about the evolution of growth-to-net for DAYBUE and NUPLAZID? - Management indicated that DAYBUE's growth-to-net is expected to remain in the low 20% range, influenced by Medicare Part D redesign [79] - For NUPLAZID, a 300 basis points price benefit is anticipated, with growth-to-net expected to improve over the next several years [81] Question: Is there a target number of patients for DAYBUE by year-end? - Management stated that the patient base is stable, with no expected meaningful decline in patients sequentially [87] - The focus will be on expanding the reach to the 70% of the Rett population that has yet to try DAYBUE [91] Question: Can you discuss the increase in diagnosed U.S. Rett patients? - The increase in diagnosed patients is attributed to better tracking and diagnostics, with a current estimate of 5,500 to 5,800 patients [95] Question: How does ACP-711 compare with SAGE-324? - Management highlighted that ACP-711 targets GABA-Alpha-3 receptors specifically, which may reduce potential safety side effects compared to SAGE-324 [98] Question: What are the secondary endpoints for ACP-101 in Prader-Willi syndrome? - Management expressed confidence that multiple mechanisms of action will be effective in treating Prader-Willi syndrome, with ongoing trials focusing on specific endpoints [118]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was $259.6 million, up 12% year-over-year, while full year revenue reached $957.8 million, up 32% from the prior year [59] - DAYBUE sales in Q4 were $96.7 million, an 11% increase year-over-year, and full year sales were $348.4 million, a 97% increase compared to $177.2 million in 2023 [60] - NUPLAZID sales in Q4 were $162.9 million, a 13% increase year-over-year, with full year sales of $609.4 million, up 11% from $549.2 million in the prior year [61] Business Line Data and Key Metrics Changes - DAYBUE's gross-to-net was 18.8% for the year, with a sequential growth of 5% in volume and 1% in net price in Q4 [60] - NUPLAZID's gross-to-net for Q4 was 23.2%, with full year gross-to-net at 26.1%, indicating a balanced growth from both volume and net price [61] Market Data and Key Metrics Changes - The company anticipates U.S. net sales for DAYBUE in 2025 to be between $380 million and $405 million, with expected volume growth of 9% to 16% year-over-year [63] - NUPLAZID's 2025 net sales are projected to be in the range of $650 million to $690 million, with growth expected to be split evenly between volume and net price [68] Company Strategy and Development Direction - The corporate strategy focuses on expanding neuroscience and neuro rare disease franchises, with plans to explore additional investments in rare diseases [11] - The company aims to achieve over $1 billion in annual net sales by 2025, joining a select group of biotech companies [73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of both DAYBUE and NUPLAZID, highlighting the importance of expanding the prescriber base and patient engagement [20][25] - The company plans to initiate a Phase 2 study for ACP-204 in Lewy body dementia psychosis and expects to see top-line results for ACP-101 in Prader-Willi syndrome in the first half of 2026 [74] Other Important Information - The company has submitted a marketing application for trofinetide in the EU, anticipating approval in Q1 2026 [42] - The cash balance at the end of 2024 was $756 million, significantly up from $438.9 million at the end of 2023, driven by operational cash flows and the sale of a priority review voucher [63] Q&A Session Summary Question: How should we think about the evolution of growth-to-net for DAYBUE and NUPLAZID? - Management indicated that DAYBUE's growth-to-net is expected to remain in the low 20% range, influenced by Medicare Part D redesign [80] - For NUPLAZID, a 300 basis points price benefit is expected in growth-to-net, with gradual increases anticipated over the next several years [81] Question: Is there a target number of patients for DAYBUE by year-end? - Management stated that the patient base is stable, with around 70% of the Rett population yet to try DAYBUE, indicating significant growth potential [91] Question: Can you discuss the increase in diagnosed U.S. Rett patients? - The increase in diagnosed patients from 5,000 to 5,800 is attributed to improved diagnostics and awareness driven by the launch of DAYBUE [95] Question: What are the secondary endpoints for ACP-101 in Prader-Willi syndrome? - Management expressed confidence that multiple mechanisms of action will be needed to treat patients in areas of unmet medical need like Prader-Willi syndrome [118]

Core Viewpoint - Acadia Pharmaceuticals reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.19 per share, and showing a decline from $0.28 per share a year ago, indicating an earnings surprise of -10.53% [1] Financial Performance - The company posted revenues of $259.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.79%, compared to $231.04 million in the same quarter last year [2] - Over the last four quarters, Acadia has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance - Acadia shares have increased by approximately 3.6% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Future Outlook - The company's earnings outlook will be crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.14 on revenues of $235.58 million, and for the current fiscal year, it is $0.76 on revenues of $1.04 billion [7] Industry Context - The Medical - Biomedical and Genetics industry, to which Acadia belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Total net product sales for 2024 reached $957.8 million, reflecting a 32% revenue growth compared to the previous year[1] - Fourth quarter net product sales of DAYBUE™ (trofinetide) were $96.7 million, with full year sales of $348.4 million[1] - Fourth quarter net product sales of NUPLAZID® (pimavanserin) were $162.9 million, totaling $609.4 million for the full year 2024, marking an 11% increase from 2023[1][5] - Total revenues for Q4 2024 reached $259.6 million, a 12.4% increase from $231.0 million in Q4 2023[21] - Acadia reported a net income of $143.7 million for Q4 2024, or $0.86 per share, compared to a net income of $45.8 million, or $0.28 per share, in Q4 2023[9] - Net income for Q4 2024 was $143.7 million, compared to a net income of $45.8 million in Q4 2023, representing a significant increase of 213.5%[21] - Basic earnings per share for Q4 2024 were $0.86, compared to $0.28 in Q4 2023, representing a 207.1% increase[21] - The company reported a gain on the sale of a non-financial asset of $146.5 million in Q4 2024, which significantly impacted the overall financial performance[21] Expenses - Research and development expenses for Q4 2024 were $100.7 million, compared to $66.7 million in Q4 2023, while total R&D expenses for 2024 were $303.2 million[7] - Selling, general and administrative expenses for Q4 2024 were $130.1 million, up from $111.5 million in Q4 2023, with full year expenses totaling $488.4 million[8] - Research and development expenses increased to $100.7 million in Q4 2024, up from $66.7 million in Q4 2023, reflecting a 50.9% rise[21] - Total operating expenses decreased to $106.1 million in Q4 2024 from $196.1 million in Q4 2023, a reduction of 45.9%[21] Guidance and Future Plans - Full year 2025 total revenue guidance is set between $1.03 billion and $1.095 billion, with DAYBUE net sales guidance of $380 to $405 million and NUPLAZID net sales guidance of $650 to $690 million[1][18] - Acadia plans to expand its DAYBUE field force in the U.S. and build its EU commercial team in anticipation of launching trofinetide in Europe next year[2] Assets and Equity - Cash, cash equivalents, and investment securities totaled $756.0 million as of December 31, 2024, compared to $438.9 million at the end of 2023[12] - Cash, cash equivalents, and investment securities increased to $756.0 million as of December 31, 2024, compared to $438.9 million at the end of 2023, marking a 72.4% increase[23] - Total assets grew to $1.19 billion in 2024, up from $749.0 million in 2023, indicating a 58.6% increase[23] - Total stockholders' equity rose to $732.8 million in 2024, compared to $431.8 million in 2023, reflecting an increase of 69.8%[23] Liabilities - Total liabilities increased to $455.0 million in 2024 from $317.2 million in 2023, a rise of 43.5%[23] Regulatory and Market Developments - The marketing authorization application for trofinetide was submitted to the European Medicines Agency (EMA) in January 2025, with expected approval in Q1 2026[3]