Acadia (ACAD) Q4 Earnings Lag, Sales Beat Estimates, Stock Down

Acadia Pharmaceuticals Inc. ACAD reported fourth-quarter 2023 earnings of 28 cents per share, missing the Zacks Consensus Estimate of 32 cents. In the year-ago quarter, the company had incurred a loss of 26 cents per share.

The bottom line improved year over year owing to higher product sales.

The company recorded total revenues of $231 million in the fourth quarter, surpassing the Zacks Consensus Estimate of $223 million. Acadia’s net product revenues comprise revenues generated from the sale of its two marketed products, Nuplazid (pimavanserin) and the newly launched Daybue.

Total revenues increased 69% year over year, primarily driven by the strong launch of Daybue and the continued uptake of Nuplazid.

ACAD’s first drug, Nuplazid, is approved in the United States for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. Acadia’s second product, Daybue, was approved by the FDA in March 2023 for the treatment of Rett syndrome in adult and pediatric patients aged two years and older.

Daybue is the first and only drug to be approved by the FDA for the given indication. The drug was launched in the United States last April.

Shares of Acadia were down 5.2% in after-hours trading on Feb 27 following the announcement of the news. The stock, however, has rallied 26% in the past year against the industry’s decline of 7.2%.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarter in Detail

In the reported quarter, revenues from Nuplazid increased 5% year over year to $143.9 million, driven by higher new patient starts. Nuplazid sales in the reported quarter beat our model estimate of $133.5 million.

Daybue recorded net product sales of $87.1 million in its second full quarter since launch. Sales of the drug increased 30.2% on a sequential basis and beat our model estimate of $80.1 million.

Research and development (R&D) expenses in the quarter were $66.7 million, down 11.9% year over year. The decrease in R&D cost was due to the Daybue commercial supply build that was expensed prior to its approval.

Selling, general and administrative (SG&A) expenses were $111.5 million, up 6.8% year over year. The increase in such expenses can be attributed to a rise in commercial costs associated with the Daybue launch.

Acadia had cash, cash equivalents and investments worth $438.9 million as of Dec 31, 2023, compared with $345.9 million as of Sep 30, 2023.

Full-Year Results

In 2023, Acadia generated revenues of $726.4 million, which increased 40.4% year over year.

In the same period, the company recorded a loss of 37 cents per share compared with a loss of $1.34 in 2022.

2024 Guidance

Acadia expects Daybue sales in the range of $370-$420 million in 2024. In the first quarter of 2024, net sales of Daybue are expected to be in the band of $76-$82 million.

Acadia’s shares were down, probably because investors were not too impressed with the sales outlook for Daybue.

The company expects Nuplazid revenues in the $560-$590 million range.

Moreover, the company expects its full-year R&D expenses in the band of $305-$325 million, while SG&A expense is anticipated in the range of $455-$480 million on account of higher commercialization costs associated with the Daybue launch.

Pipeline Updates

The company is currently evaluating pimavanserin in the phase III ADVANCE-2 study for treating negative symptoms of schizophrenia. Top-line data from the same is expected to be announced by the end of the first quarter of 2024.

Acadia is also developing another pipeline candidate, ACP-204, as a potential treatment for Alzheimer’s disease psychosis (ADP). During the fourth quarter, Acadia initiated a phase II study on ACP-204 in the ADP indication.

The company also initiated a phase III study on another candidate, ACP-101, for the treatment of hyperphagia in Prader-Willi syndrome in the fourth quarter of 2023.

In December 2023, a U.S. District Court in Delaware issued two rulings in favor of Acadia for its Nuplazid patent.

The favorable judgments from the court reaffirm the innovation in developing new treatments for disorders with high unmet needs. Together, these judgments are expected to preserve Nuplazid’s sales growth potential in the future due to the absence of generic alternatives in the market.

Acadia Pharmaceuticals Inc. Price, Consensus and EPS Surprise

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).

Some better-ranked stocks in the healthcare sector are Indivior PLC INDV Vanda Pharmaceuticals Inc. VNDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Indivior’s 2024 earnings per share have improved from $1.83 to $1.95. In the past year, shares of INDV have risen 14.3%.

Indivior’s earnings beat estimates in each of the trailing three quarters. INDV delivered an average earnings surprise of 48.06%.

In the past 60 days, the Zacks Consensus Estimate for Vanda Pharmaceuticals’ 2024 bottom line has improved from a loss of 46 cents per share to earnings of 1 cent. In the past year, shares of VNDA have plunged 28.7%.

Vanda Pharmaceuticals’ earnings beat estimates in each of the trailing three quarters. VNDA delivered an average earnings surprise of 92.88%.

In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 69 cents to 71 cents. In the past year, shares of PBYI have risen 67.4%.

Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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