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ACADIA Pharmaceuticals Reports Second Quarter 2004 Financial Results

SAN DIEGO, Aug 11, 2004 /PRNewswire via COMTEX/ -- ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD), a biopharmaceutical company utilizing innovative science to fuel drug discovery and clinical development of novel treatments for central nervous system disorders, today reported financial results for the second quarter and six months ended June 30, 2004.

ACADIA reported a net loss of $5.9 million for the second quarter ended June 30, 2004, compared to a net loss of $3.0 million for the second quarter of 2003. For the six months ended June 30, 2004, ACADIA reported a net loss of $12.4 million, compared to a net loss of $6.4 million for the comparable period of 2003. At June 30, 2004, ACADIA's cash, cash equivalents, and investment securities totaled $48.8 million, compared to $27.2 million at December 31, 2003.

Second Quarter and Six Month Financial Results

Revenues totaled $1.0 million and $1.9 million for the second quarter and six months ended June 30, 2004, respectively, compared to $2.3 million and $4.1 million for the comparable periods of 2003. Revenues consisted largely of collaborative revenues earned under the company's agreements with Allergan and, for the 2003 periods, also included revenues from the company's agreement with Amgen, the research term of which was completed in late 2003.

Research and development expenses totaled $5.4 million and $11.2 million for the second quarter and six months ended June 30, 2004, respectively, compared to $4.3 million and $8.5 million for the comparable periods of 2003. The increase in research and development expenses largely reflected increased clinical development costs associated with ACADIA's proprietary drug candidates as well as increased costs associated with expansion of the company's internal research and development activities.

General and administrative expenses totaled $880,000 and $1.8 million for the second quarter and six months ended June 30, 2004, respectively, compared to $644,000 and $1.4 million for the comparable periods of 2003. The increase in general and administrative expenses was due primarily to increased professional fees and other costs associated with ACADIA's transition to becoming a publicly traded company.

Non-cash, stock-based compensation expenses increased to $614,000 and $1.3 million for the second quarter and six months ended June 30, 2004, respectively, compared to $218,000 and $443,000 for the comparable periods of 2003.

"The second quarter of 2004 was a productive period for ACADIA as we aggressively advanced our proprietary clinical development programs, broadened our portfolio of discovery assets, and completed our initial public offering," said Uli Hacksell, Ph.D., ACADIA's Chief Executive Officer. "We are now positioned to deliver on our key objective to complete Phase II studies in each of our three proprietary clinical programs through 2005, while continuing to build a broad portfolio of innovative therapies to treat central nervous system disorders and other areas of unmet medical need."

    Second Quarter and Recent Highlights

      * ACADIA presented results of a Phase Ib/IIa clinical trial of ACP-103
        in patients with Parkinson's disease during the second quarter of
        2004.  ACP-103 was safe and well tolerated with no adverse events
        reported, and did not worsen the pre-existing motor deficits of these
        patients.  In a subgroup of patients who entered the trial with
        treatment-induced dyskinesias, these symptoms were reduced following
        ACP-103 administration.  This finding is consistent with the
        previously demonstrated antidyskinetic activity of ACP-103 in a monkey
        model of Parkinson's disease.  Following these encouraging initial
        findings, ACADIA is preparing to begin a clinical pharmacology study
        to further explore the antidyskinetic activity of ACP-103.
      * ACADIA is currently conducting a multi-center Phase II clinical trial
        with ACP-103, designed to evaluate the efficacy and safety of this
        drug candidate in Parkinson's disease patients who suffer from
        treatment-induced psychosis.  During the second quarter of 2004,
        ACADIA began the clinical phase of this trial and ACADIA has now
        opened all trial sites and continues to enroll patients.  Results from
        this trial are expected during the first half of 2005.
      * ACADIA is advancing with its Phase II program using ACP-103 as an
        adjunctive therapy for schizophrenia.  This Phase II program consists
        of an ongoing clinical pharmacology study and two clinical trials
        designed to evaluate the ability of ACP-103 to reduce motor
        disturbances and to improve the efficacy of current antipsychotic
        agents.  ACADIA expects to begin the clinical trials shortly and
        report results during 2005.
      * ACADIA recently published research linking the mechanism of its drug
        candidate ACP-104, the major metabolite of clozapine, to the unique
        ability of clozapine to improve cognition in patients with
        schizophrenia.
      * ACADIA entered into a three-year development agreement with
        The Stanley Medical Research Institute, which will provide ACADIA with
        up to $5 million in funding to support the further development of
        ACP-104.  ACADIA expects to initiate clinical trials shortly in its
        Phase II program for ACP-104.
      * ACADIA closed the initial public offering of shares of its common
        stock on June 2, 2004, resulting in net proceeds to ACADIA of
        $31.0 million.

Conference Call and Webcast Information

Uli Hacksell, Ph.D., Chief Executive Officer, and Thomas H. Aasen, Vice President and Chief Financial Officer, will review second quarter results via conference call and webcast later today at 4:30 p.m. EDT. The conference call may be accessed by dialing 800-901-5231 for participants from the United States or Canada and 617-786-2961 for international callers (reference participant passcode 69887488). The conference call also will be webcast live on ACADIA's website at http://www.acadia-pharm.com, under the investor relations section, and will be archived there until August 25, 2004.

About ACADIA Pharmaceuticals

ACADIA Pharmaceuticals is a biopharmaceutical company utilizing innovative science to fuel drug discovery and clinical development of novel treatments for central nervous system disorders. ACADIA currently has five drug programs in clinical and preclinical development directed at large unmet medical needs and major commercial markets, including Parkinson's disease, schizophrenia, chronic pain, and glaucoma. Using its proprietary drug discovery platform, ACADIA has discovered all of the drug candidates in its product pipeline. ACADIA's corporate headquarters and biological research facilities are located in San Diego, California and its chemistry research facilities are located in Copenhagen, Denmark.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements include but are not limited to statements related to the progress and timing of our drug development programs and related trials and the efficacy of our drug candidates. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the risks and uncertainties inherent in drug development and commercialization. For a discussion of these and other factors, please refer to the company's registration statement on Form S-1 as well as other subsequent filings with the Securities and Exchange Commission.

     Contact:
     ACADIA Pharmaceuticals Inc.
     Thomas H. Aasen, Vice President and Chief Financial Officer
     +1-858-558-2871


                         ACADIA PHARMACEUTICALS INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands, except per share amounts)
                                 (Unaudited)

                                  Three Months Ended    Six Months Ended
                                       June 30,             June 30,
                                    2004      2003      2004        2003

     Collaborative research
      revenues                     $1,016    $2,281     $1,940     $4,131

     Operating expenses
     Research and development       5,407     4,323     11,156      8,454
     General and administrative       880       644      1,791      1,390
     Stock-based compensation         614       218      1,310        443
        Total operating expenses    6,901     5,185     14,257     10,287
        Loss from operations       (5,885)   (2,904)   (12,317)    (6,156)
     Interest income (expense)         (1)      (72)       (51)      (231)
        Net loss                  $(5,886)  $(2,976)  $(12,368)   $(6,387)
     Participation of
      preferred stock              (3,110)   (2,594)    (8,587)    (5,567)
        Net loss available to
         common stockholders       (2,776)     (382)    (3,781)      (820)
     Net loss per common share,
      basic and diluted            $(0.42)   $(0.26)    $(0.94)    $(0.56)
     Weighted average common
      shares outstanding,
      basic and diluted             6,552     1,459      4,024      1,458
        Net loss available to
         participating preferred
         stockholders             $(3,110)  $(2,594)   $(8,587)   $(5,567)
     Net loss per participating
      preferred share,
      basic and diluted            $(0.31)   $(0.27)    $(0.87)    $(0.71)
     Weighted average
      participating preferred
      shares outstanding,
      basic and diluted             9,901     9,716      9,901      7,853

       ACADIA's preferred stock was reclassified or converted into
       9,900,913 shares of common stock upon the completion of the
       initial public offering on June 2, 2004.


                           ACADIA PHARMACEUTICALS INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (in thousands)
                                   (Unaudited)

                                                       June 30,  December 31,
                                                         2004       2003
     Assets
     Cash, cash equivalents and
      investment securities, available-for-sale         $48,793    $27,214
     Prepaid expenses and other current assets            1,465      1,058
        Total current assets                             50,258     28,272
     Property and equipment, net                          2,761      3,117
     Other assets                                           285        304
        Total assets                                    $53,304    $31,693

     Liabilities and Stockholders' Equity (Deficit)
     Current liabilities                                 $9,566     $8,226
     Long-term liabilities                                  946      1,624
     Convertible preferred stock                             --     74,514
     Stockholders' equity (deficit)                      42,792    (52,671)
        Total liabilities and
         stockholders' equity (deficit)                 $53,304    $31,693

Thomas H. Aasen, Vice President and Chief Financial Officer of ACADIA Pharmaceuticals Inc., +1-858-558-2871

http://www.acadia-pharm.com