Acadia Pharmaceuticals Jumps on Incredible Earnings

By Chris Lange Updated Jan 12, 6:02PM EST · Published Nov 8, 11:05AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Acadia Pharmaceuticals Jumps on Incredible Earnings — © Thinkstock

When Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) released its third-quarter earnings report after the markets closed on Monday, it said it had a net loss of $0.49 per share and $5.3 million in revenue. The consensus estimates from Thomson Reuters called for a net loss of $0.56 per share and revenue of $2.9 million. In the same period of last year, Acadia posted a net loss of $0.39 per share.

In October, the company announced the initiation of the SERENE study, a Phase 2 study with pimavanserin for patients with Alzheimer’s disease agitation.

Acadia announced the initiation of its Enhance-1, a Phase 3 study with pimavanserin for adjunctive treatment for patients with schizophrenia who are experiencing inadequate response to their current antipsychotic therapy.

During this quarter, the company also completed the enrollment of its Phase 2 study exploring the utility of pimavanserin for the treatment of Alzheimer’s disease psychosis. The top-line results from the study are expected by the end of 2016.

In a common stock offering that took place in August, Acadia raised roughly $216 million, which is being put toward developing its current pipeline.

[nativounit]

On the books, Acadia cash, cash equivalents and investment securities totaled $588.86 million at the end of the quarter, up from $215.13 million at the end of 2015.

Steve Davis, Acadia’s president and chief executive, commented on the report:

We are very pleased with the launch and are gratified by the positive feedback we have received from physicians, patients, and caregivers on NUPLAZID (pimavanserin). We saw solid month-over-month prescription growth, reported increased payor coverage, and continued to expand awareness of NUPLAZID among movement disorder specialists, neurologists, and psychiatrists.

Shares of Acadia were trading up 15% at $26.45 on Tuesday. The consensus analyst price target is $42.80 and the 52-week trading range is $16.64 to $42.49.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.