In response to Acadia Pharmaceuticals (NASDAQ:ACAD) 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.
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.
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.