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Acadia's Q3 Earnings Beat, Nuplazid & Daybue Drive Revenue Growth

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Acadia Pharmaceuticals (ACAD - Free Report) reported third-quarter 2024 earnings of 20 cents per share, beating the Zacks Consensus Estimate of 13 cents. In the year-ago quarter, the company had incurred a loss of 40 cents per share. 

Acadia recorded total revenues of $250 million, which beat the Zacks Consensus Estimate of $249 million. ACAD’s net product revenues comprise revenues generated from the sale of its two marketed products, Nuplazid (pimavanserin) and the newly launched Daybue (trofinetide).

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, received approval last year for treating 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 in April 2023.

Total revenues jumped 18% year over year, driven by the contribution from Daybue and the continued growth in Nuplazid's market share.

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ACAD’s Q3 Results in Detail

Revenues from Nuplazid increased 10% year over year to $159.2 million, driven by 7% growth in volumes . Nuplazid sales beat the Zacks Consensus Estimate of $155.6 million as well as our model estimate of $150.9 million.

Year to date, shares of Acadia have plunged 49.6% compared with the industry’s decline of 2.5%.

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Daybue recorded net product sales of $91.2 million in the reported quarter, up 36% year over year and 8% sequentially, driven by the growth in the drug’s unit sales. The reported figure, however, missed the Zacks Consensus Estimate of $93.8 million as well as our model estimate of $97.4 million.

Research and development (R&D) expenses were $66.6 million, down 58% year over year. The fall in R&D cost was mainly due to decreased business development payments in the reported quarter. The year-ago quarter figure included the $100 million payment to Neuren under the license agreement for trofinetide, which later got approval under the brand name Daybue.

Selling, general and administrative (SG&A) expenses were $133.3 million, up 36% year over year. The increase in such expenses can be primarily attributed to the consumer activation program to support the Nuplazid franchise. Increased marketing costs of Daybue in the United States, along with investments to commercialize the drug outside the United States, also fueled the surge in SG&A expenses.

Acadia had cash, cash equivalents and investments worth $565.3 million as of Sept. 30, 2024, compared with $500.9 million as of June 30, 2024.

ACAD Updates 2024 Financial Guidance

Acadia updated its financial guidance for 2024 in its third-quarter earnings release. Total revenue is now projected in the range of $940-$960 million, narrower than the previously guided range of $930-$980 million.

The company now expects Daybue sales in the range of $340-$350 million in 2024 compared with the previously guided range of $340-$370 million.

Nuplazid revenues are now projected in the band of $600-$610 million compared with the previously guided range of $590-$610 million.

ACAD projects its full-year R&D expenses in the band of $280-$290 million, down from the previously guided range of $305-$315 million.

On the other hand, the company increased its guidance for SG&A expenses, which are now anticipated in the range of $480-$495 million compared with the previously guided range of $465-$480 million on account of higher commercialization costs associated with the Daybue launch.

ACAD’s Key Updates

In November 2024, Acadia announced that it has entered into a definitive agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) for $150 million, with the transaction set to close upon the fulfillment of certain customary closing conditions.

Acadia received this PRV in March 2023 after the FDA’s approval of Daybue for Rett syndrome, a treatment initially licensed from Neuren Pharmaceuticals in 2018. As part of the agreement, Acadia will pay Neuren one-third of the net proceeds from sales of Daybue.

The company plans to use its share of the net proceeds to support its commercial operations, R&D programs in the central nervous system and rare disease, and explore new business opportunities.

ACAD’s Zacks Rank & Stocks to Consider

Acadia currently carries a Zacks Rank #3 (Hold).

Some better-ranked pharma stocks are Allogene Therapeutics (ALLO - Free Report) , Biogen (BIIB - Free Report) and Novartis (NVS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allogene Therapeutics’ loss estimates have remained constant at $1.41 per share for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.45 per share. ALLO’s shares have gained 0.3% year to date.

Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 11.82%.

Biogen’s earnings estimates have risen from $16.12 to $16.37 per share for 2024 over the past 60 days, while that for 2025 has increased from $17.09 to $17.15. BIIB’s shares have lost 32.6% year to date.

Biogen’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.99%.

Novartis’ earnings estimates have risen from $7.50 to $7.56 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.30 to $8.33. NVS’ shares have risen 5.8% year to date.

Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.

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