ACADIA Pharmaceuticals' CEO Discusses Q2 2012 Results - Earnings Call Transcript

ACADIA Pharmaceuticals Inc. (ACAD)

Q2 2012 Earnings Call

August 8, 2012 5:00 pm ET

Executives

Thomas H. Aasen – Treasurer, Chief Financial & Business Officer

Uli Hacksell – President, Chief Executive Officer & Director

Roger M. Mills – Executive Vice President-Development

Analysts

Charles C. Duncan – JMP Securities LLC

Bert C. Hazlett – ROTH Capital Partners LLC

Jason Napodano – Zacks Investment Research, Inc.

Juan Sanchez – Ladenburg Thalmann Securities

Brian William Lian – SunTrust Robinson Humphrey

George B. Zavoico – McNicoll, Lewis & Vlak LLC

Presentation

Operator Good day, ladies and gentlemen, and welcome to ACADIA Pharmaceuticals’ Second Quarter 2012 Financial Results Conference Call. My name is Dianna, and I will be the coordinator for today. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of today’s call. (Operator Instructions)

I would now like to turn the presentation over to Tom Aasen, Executive Vice President and Chief Financial Officer at ACADIA. Please proceed.

Thomas Aasen

Thank you. Good afternoon and welcome to ACADIA Pharmaceuticals second quarter 2012 conference call. This call is being recorded and an archived copy will be available on our website at www.acadia-pharm through August 22nd of this year.

Joining me on the call today from ACADIA are Dr. Uli Hacksell, our Chief Executive Officer; and Dr. Roger Mills, our Executive Vice President of Development. We will begin our call today with some introductory remarks by Uli, and then I’ll briefly comment on our financial results for the second quarter. After this Roger and Uli will provide you with an update on our development programs and we’ll then open the floor to your questions.

Before we proceed, I would first like to remind you that during our call today we’ll be making a number of forward-looking statements including statements regarding our and our partners’ research and development programs and plans, including the timing, design and results of clinical trials. The benefits to be derived from and the commercial potential for our product candidates, in each case including pimavanserin, benefits to be derived from changes to clinical trial designs, plans regarding the development of pimavanserin and partnering strategy, and our future expenses and collaboration and grant payments, cash position and stock performance.

These forward looking statements are based on current information, assumptions and expectations that are inherently subject to change and involve a number of risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors and other risks associated with our business can be found in our filings made with the SEC, including our annual report on Form 10-K for the year-ended December 31, 2011, and other filings.

You are cautioned not to place undue reliance on these forward-looking statements, which are made only as of today’s date. ACADIA disclaims any obligation to update these forward-looking statements.

I’ll now turn the call over to Uli, our Chief Executive Officer.

Uli Hacksell

Thank you, Tom, and good afternoon. Let me first take this opportunity to thank all of you for joining us on today’s conference call. The first half of 2012 was a very important period in our Phase III program with pimavanserin for Parkinson’s Disease Psychosis or PDP, and sets the stage for what we believe will be an exciting and value-driving second half of the year.

As you will hear later from Roger, we remain convinced that the optimized study design we have been using in the ongoing pivotal Phase III PDP trial has set enrollment of patients with the desired clinical profile, which should help position this study for success. We look forward to reporting top line results from the Phase III trial this fall and believe that a successful study should significantly increase the value of pimavanserin.

Currently, there is no FDA-approved therapy for PDP. We believe that pimavanserin has the potential to be the first safe and effective drug that will treat PDP without compromising motor control, thereby significantly improving the quality of life for patients with Parkinson’s disease. PDP is a large unmet medical need and represents what we believe is an ideal lead indication for pimavanserin.

We are focused on advancing our Phase III program toward registration for this indication. Meanwhile, we also believe pimavanserin has a broad potential to address a range of other neurological and psychiatric disorders that are poorly served by existing antipsychotic drugs. While pimavanserin provides the foundation of our product pipeline, we have several additional programs in our R&D portfolio. Our pipeline also includes two clinical stage programs in the areas of chronic pain and Glaucoma in collaboration with Allergan, and two preclinical stage programs directed at Parkinson’s disease and other neurological disorders.

All of our programs have been generated from internal discoveries at ACADIA, and offer what we believe are innovative approaches that address large potential commercial market opportunities. Overall, our pipeline of product candidates, led by our Phase III PDP program with pimavanserin, positions ACADIA with multiple product and commercial opportunities and significant growth potential.

Before we review our programs in a bit more detail, let me ask Tom to briefly comment on our second-quarter results.

Thomas Aasen

Thank you, Uli. Our financial results reflect a focus on our Phase III pimavanserin program, and once again demonstrate our financial discipline and expense control. Revenues totaled $599,000 for the second quarter, up from $460,000 for the comparable quarter of 2011, and were generated primarily from our collaborations with Allergan and our R&D grants. We expect to continue to realize revenues from these sources throughout the year.

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