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ACADIA (ACAD) Beats on Q4 Earnings, Misses on Revenues
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ACADIA Pharmaceuticals Inc. (ACAD - Free Report) reported fourth-quarter 2020 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of a loss of 48 cents. However, the loss was wider than the year-ago quarter’s loss of 34 cents.
Total revenues comprising net sales of the company’s only marketed drug, Nuplazid (pimavanserin), increased 23% year over year to $121 million in the fourth quarter. However, the top line missed the Zacks Consensus Estimate of $123 million.
We note that Nuplazid is the first and the only FDA-approved treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. On the fourth-quarter conference call, management stated that sales of Nuplazid grew steadily year over year and slightly sequentially, driven by a strong commercial execution.
Quarter in Detail
Research and development (R&D) expenses were $62.1 million in the quarter, up 8% from the year-ago period due to higher expenses related to the acquisition of CerSci Therapeutics in August last year.
Selling, general and administrative (SG&A) expenses rose 31.4% year over year to $120.8 million due to increased advertising and promotional costs, and higher personnel costs.
As of Dec 31, 2020, ACADIA had cash, cash equivalents and investments worth $632 million compared with $644.4 million as of Sep 30, 2020.
Full-Year Results
For 2020, ACADIA generated revenues of $441.7 million, reflecting an increase of 30.3% year over year.
For the same period, the company reported loss of $1.79 per share compared with the year-ago loss of $1.60 per share.
2021 Guidance
ACADIA expects total revenues from Nuplazid sales for the Parkinson’s disease psychosis indication to be in the range of $510-$550 million for 2021. The Zacks Consensus Estimate for the metric stands at $673.5 million.
The above guidance does not include potential revenues from the dementia-related psychosis (“DRP”) indication, for which Nuplazid is currently under review.
Meanwhile, the company expects its R&D expenses to be in the range of $300-$320 million, while SG&A expenses are projected in the band of $560-$590 million for full-year 2021.
Shares of ACADIA were down 1.7% in after-hours trading on Wednesday on the sales miss and the weak guidance. In fact, the stock has declined 9% so far this year against the industry’s increase of 5.4%.
Pipeline Updates
Several additional studies on Nuplazid targeting different central nervous system (“CNS”) indications are currently underway. A potential label expansion will boost the drug’s sales in the future quarters.
Nuplazid is currently under review in the United States for treating hallucinations and delusions associated with DRP. The FDA set an action date of Apr 3, 2021. If approved, Nuplazid will get a potential second indication on its label. The supplemental new drug application (sNDA) for Nuplazid to address the given indication was based on data from the pivotal phase III HARMONY study.
Other studies on Nuplazid include the phase III ADVANCE-1 and ADVANCE-2 study for treating negative symptoms of schizophrenia. Currently, there is no FDA-approved treatment option for the given condition.
Additionally, ACADIA is evaluating a pipeline candidate, trofinetide, in the phase III LAVENDER study for the treatment of Rett syndrome, a rare neurodevelopmental congenital CNS disorder for girls aged between five and 20 years. Top-line data from the same is expected in the fourth quarter of 2021.
Meanwhile, ACADIA plans to begin a phase II bunionectomy study on ACP-044 a novel orally administered non-opioid analgesic for treating acute and chronic pain in the ongoing quarter. The company also plans to initiate an osteoarthritis study on ACP-044 in the second quarter of 2021.
ACADIA Pharmaceuticals Inc. Price, Consensus and EPS Surprise
Lexicon’s loss per share estimates have narrowed 74.2% for 2021 over the past 60 days. The stock has skyrocketed 126.5% year to date.
Vericel’s earnings estimates have been revised 11.7% upward for 2021 over the past 60 days. The stock has rallied 60.2% year to date.
Dynavax’s loss per share estimates have narrowed 62.2% for 2021 over the past 60 days. The stock has soared 110.8% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
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ACADIA (ACAD) Beats on Q4 Earnings, Misses on Revenues
ACADIA Pharmaceuticals Inc. (ACAD - Free Report) reported fourth-quarter 2020 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of a loss of 48 cents. However, the loss was wider than the year-ago quarter’s loss of 34 cents.
Total revenues comprising net sales of the company’s only marketed drug, Nuplazid (pimavanserin), increased 23% year over year to $121 million in the fourth quarter. However, the top line missed the Zacks Consensus Estimate of $123 million.
We note that Nuplazid is the first and the only FDA-approved treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. On the fourth-quarter conference call, management stated that sales of Nuplazid grew steadily year over year and slightly sequentially, driven by a strong commercial execution.
Quarter in Detail
Research and development (R&D) expenses were $62.1 million in the quarter, up 8% from the year-ago period due to higher expenses related to the acquisition of CerSci Therapeutics in August last year.
Selling, general and administrative (SG&A) expenses rose 31.4% year over year to $120.8 million due to increased advertising and promotional costs, and higher personnel costs.
As of Dec 31, 2020, ACADIA had cash, cash equivalents and investments worth $632 million compared with $644.4 million as of Sep 30, 2020.
Full-Year Results
For 2020, ACADIA generated revenues of $441.7 million, reflecting an increase of 30.3% year over year.
For the same period, the company reported loss of $1.79 per share compared with the year-ago loss of $1.60 per share.
2021 Guidance
ACADIA expects total revenues from Nuplazid sales for the Parkinson’s disease psychosis indication to be in the range of $510-$550 million for 2021. The Zacks Consensus Estimate for the metric stands at $673.5 million.
The above guidance does not include potential revenues from the dementia-related psychosis (“DRP”) indication, for which Nuplazid is currently under review.
Meanwhile, the company expects its R&D expenses to be in the range of $300-$320 million, while SG&A expenses are projected in the band of $560-$590 million for full-year 2021.
Shares of ACADIA were down 1.7% in after-hours trading on Wednesday on the sales miss and the weak guidance. In fact, the stock has declined 9% so far this year against the industry’s increase of 5.4%.
Pipeline Updates
Several additional studies on Nuplazid targeting different central nervous system (“CNS”) indications are currently underway. A potential label expansion will boost the drug’s sales in the future quarters.
Nuplazid is currently under review in the United States for treating hallucinations and delusions associated with DRP. The FDA set an action date of Apr 3, 2021. If approved, Nuplazid will get a potential second indication on its label. The supplemental new drug application (sNDA) for Nuplazid to address the given indication was based on data from the pivotal phase III HARMONY study.
Other studies on Nuplazid include the phase III ADVANCE-1 and ADVANCE-2 study for treating negative symptoms of schizophrenia. Currently, there is no FDA-approved treatment option for the given condition.
Additionally, ACADIA is evaluating a pipeline candidate, trofinetide, in the phase III LAVENDER study for the treatment of Rett syndrome, a rare neurodevelopmental congenital CNS disorder for girls aged between five and 20 years. Top-line data from the same is expected in the fourth quarter of 2021.
Meanwhile, ACADIA plans to begin a phase II bunionectomy study on ACP-044 a novel orally administered non-opioid analgesic for treating acute and chronic pain in the ongoing quarter. The company also plans to initiate an osteoarthritis study on ACP-044 in the second quarter of 2021.
ACADIA Pharmaceuticals Inc. Price, Consensus and EPS Surprise
ACADIA Pharmaceuticals Inc. price-consensus-eps-surprise-chart | ACADIA Pharmaceuticals Inc. Quote
Zacks Rank & Stocks to Consider
ACADIA currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Lexicon Pharmaceuticals, Inc. (LXRX - Free Report) , Vericel Corporation (VCEL - Free Report) and DynavaxTechnologies Corporation (DVAX - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lexicon’s loss per share estimates have narrowed 74.2% for 2021 over the past 60 days. The stock has skyrocketed 126.5% year to date.
Vericel’s earnings estimates have been revised 11.7% upward for 2021 over the past 60 days. The stock has rallied 60.2% year to date.
Dynavax’s loss per share estimates have narrowed 62.2% for 2021 over the past 60 days. The stock has soared 110.8% year to date.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>