Shares of Acadia Pharmaceuticals (NASDAQ: ACAD) are soaring today, up 17.8% as of 11:27 a.m. EDT, after the drugmaker announced strong second-quarter financial results.
The main reason investors are so pumped up about Acadia is due to just how impressive the company's Q2 results were. Acadia reported that its revenue in the second quarter increased 46% year over year to $83.2 million, fueled by continued momentum for antipsychotic drug Nuplazid. This easily topped the consensus Wall Street estimate of a little over $72 million in revenue.
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While Acadia announced a net loss of $54.9 million, or $0.38 per share, its bottom line in Q2 was much better than the net loss of $63 million, or $0.51 per share, in the prior-year period. It also beat analysts' average estimate of a net loss of $0.45 per share.
One quarter of exceeding Wall Street's expectations doesn't change the investing thesis for Acadia, of course. However, the strength for Nuplazid is definitely impressive. And it shows that the company's commercial strategy is working quite well.
Michael Yang, Acadia's chief commercial officer, said in the Q2 conference call that the company's sales team is doing a great job in reaching new prescribers and long-term care pharmacies. He also thought that the transition to the 34 mg tablet and a successful direct-to-consumer campaign were key in Nuplazid's successful quarter.
Aside from watching how well Acadia continues to execute on its commercialization activities for Nuplazid, the primary things to look forward to for the company are several key pipeline developments. Acadia should begin a late-stage study of trofinetide in treating Rett syndrome in the fourth quarter of 2019. It expects to report results from a study of Nuplazid in treating "negative symptoms" of schizophrenia in December. The company also anticipates announcing interim results from a study of Nuplazid in dementia-related psychosis later this year, with top-line results on the way in the second half of 2020.
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