Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) reported its fourth quarter financial results and missed revenue estimates on top of a net loss. Shares slipped by 10 percent into Wednesday’s pre-market hours on doubts of the company’s sole revenue driver drug.
For the fourth quarter, Acadia reported revenue of $43.6 million, increasing 264.5 percent year over year, but narrowly missing of analysts’ estimates of $42.88 million. The company reported a net loss of $68.9 million or a loss of $0.55 per share, beating analysts’ estimates by $0.03.
Acadia currently only has one drug that is approved by the U.S. Food and Drug Administration, which accounts for the pharmaceutical company’s revenue. Nuplazid, which began to available for prescription in May 2016, is a drug used to treat Parkinson’s Disease psychosis, which almost three quarters of patients suffer from.
Nuplazid showed significant growth as sales increased by 263 percent from $12 million to $43.6 million. As for the full year, Nuplazid increased by 622 percent from $17.3 million to $124.9 million.
“Our 2017 results reflect the robust uptake of NUPLAZID (pimavanserin) in the treatment of Parkinson’s disease psychosis,” said Steve Davis, ACADIA’s President and Chief Executive Officer.
Although Nuplazid had a strong growth, it wasn’t enough to offset Acadia’s expenses. Considering this is the only drug the company has to drive its revenue, it has to be able to drive in more revenue than its expenses.
Acadia reported research and development expenses of $43.2 million, increasing from a year prior of $30.2 million. The company said the increase was due to clinical trials throughout the year.
“As we look to 2018, we anticipate continued strong volume growth for NUPLAZID. In addition, we look forward to advancing our late-stage clinical programs in dementia-related psychosis, schizophrenia inadequate response and schizophrenia negative symptoms, as well as sharing the top-line results of our CLARITY study in major depressive disorder in the second half of 2018.” said Davis.
For 2018, Acadia forecasts full year Nuplazid sales between $255 million and $270 million, with net sales for the first quarter of $45 million and $48 million.