What happened
In response to Acadia Pharmaceuticals (ACAD +2.72%) reporting blow-out earnings and sharing upbeat guidance, shares of the commercial-stage biopharma, which focuses on diseases of the central nervous system, were trading 13.9% higher as of 1:35 p.m. EDT on Wednesday.
So what
Here's a review of the key financial numbers from the second quarter:
- Revenue from sales of the company's Parkinson's disease psychosis (PDP) drug Nuplazid totaled $30.5 million -- far ahead of the $19.6 million that Wall Street had expected. However, it should be noted that the figure included a one-time benefit of $3.6 million because the company transitioned its revenue recognition method of accounting to the sell-in method.
- Net loss was $67.4 million, or $0.55 per share -- far lower than $0.71 loss that market watchers had anticipated.
- Acadia's cash balance at quarter end was $417 million.
- Management guided for full-year sales of Nuplazid to land between $105 million and $115 million. The midpoint of this range is far ahead of the $94 million in revenue that Wall Street had projected.
Acadia also shared a few non-financial highlights from the quarter with investors:
- The company held an end-of-phase-2 meeting with the FDA related to its Alzheimer's disease psychosis program. Management says that the meeting went well, and that a phase 3 study will kick off in the next few months.
- 25 new sales reps were deployed to expand the company's focus on the long-term care market. The company now has more than 150 total sales reps deployed in the field.
Given the better-than-expected Q2 results, upbeat guidance, and positive meeting with the FDA, it is easy to understand why shares are rising today.
Image source: Getty Images.
Now what
Acadia's Q2 results continue to support the idea that Nuplazid is off to a fast start. That's great news for investors, and illustrates the benefits of entering a market where there is no competition in sight.
Looking ahead, Acadia will be presenting data from its phase 2 Alzheimer's disease psychosis (ADP) trial at a medical conference in November. Since ADP represents a larger market opportunity for Nupalzid than PDP, it remains a must-watch program for shareholders.
Beyond that, Acadia's report shows it's having success at moving its clinical pipeline forward. Long-term shareholders have plenty of reasons to remain optimistic about this company's future.
