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ACADIA Pharmaceuticals (ACAD)
NASDAQ:ACAD
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ACADIA Pharmaceuticals
(NASDAQ:ACAD)79Outperform
Positive Factors
Pipeline Development
The pipeline is maturing with data readouts expected in 2026, suggesting future potential for the company.
Sales Growth
Nuplazid appears like it will be demonstrating better-than-expected growth closer to 10% as the rejuvenated spending on DTC support seems to be working.
Negative Factors
Sales Guidance
2025 Daybue sales guidance was lower than expected.
ACADIA Pharmaceuticals (ACAD) vs. S&P 500 (SPY)
Market Cap
$2.87B
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)12.6
Beta (1Y)1.28
Revenue Growth31.85%
EPS GrowthN/A
CountryUS
Employees598
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)1.36
Shares Outstanding166,788,510
10 Day Avg. Volume1,766,928
30 Day Avg. Volume1,699,599
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.06
Price to Cash Flow (P/CF)18.10
P/FCF Ratio18.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.14Price Target Upside52.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
ACADIA Pharmaceuticals Business Overview & Revenue Model
Company DescriptionACADIA Pharmaceuticals (ACAD) is a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders. The company operates within the healthcare sector, primarily targeting neurological and psychiatric conditions. Its flagship product, NUPLAZID (pimavanserin), is approved for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis.
How the Company Makes MoneyACADIA Pharmaceuticals generates revenue primarily through the sales of its commercial product, NUPLAZID. The company focuses on expanding the drug's market presence by seeking additional indications for use, thereby increasing its potential patient base. ACADIA also engages in strategic partnerships and collaborations to enhance its research and development capabilities, which may result in milestone and royalty payments. Furthermore, the company invests in ongoing clinical trials to develop new products and extend the utility of existing ones, aiming to diversify its revenue streams in the future.
ACADIA Pharmaceuticals Financial Statement Overview
Summary
ACADIA Pharmaceuticals has shown a strong financial performance with significant improvements across income, balance sheet, and cash flow metrics. The company has transitioned to profitability with robust revenue and profit growth, maintained a stable balance sheet with low leverage, and improved cash flow metrics indicating solid cash generation capabilities.Income Statement
ACADIA Pharmaceuticals has shown a strong improvement in its income statement. The gross profit margin for 2024 is robust at 91.47%, reflecting efficient cost management. The net profit margin also turned positive to 23.64%, indicating profitability compared to losses in previous years. Revenue grew by 31.87% from 2023 to 2024, a strong upward trajectory. The EBIT and EBITDA margins both improved to 24.09%, showcasing enhanced operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of ACADIA Pharmaceuticals is solid with a debt-to-equity ratio of 0.06, suggesting low leverage and financial stability. The return on equity (ROE) is remarkable at 30.90%, indicating effective utilization of equity to generate profits. The equity ratio is at a healthy 61.69%, reflecting a strong equity position. Overall, the balance sheet demonstrates stability with low risk due to minimal debt.78
Positive
Cash Flow
ACADIA Pharmaceuticals has shown significant improvement in cash flow metrics. The free cash flow growth rate is substantial, turning from negative to positive free cash flow of $157 million in 2024. The operating cash flow to net income ratio is positive at 0.70, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.69, demonstrating strong cash conversion efficiency.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 512.40M | 957.80M | 726.44M | 517.24M | 484.14M | 441.75M | Gross Profit |
| 497.54M | 875.96M | 680.71M | 507.07M | 465.00M | 421.20M | EBIT |
| -206.63M | 230.79M | -73.38M | -223.60M | -170.44M | -286.59M | EBITDA |
| -204.07M | 100.16M | -67.83M | -221.57M | -167.09M | -286.59M | Net Income Common Stockholders |
| -204.62M | 226.45M | -61.29M | -215.97M | -167.87M | -281.58M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 755.99M | 755.99M | 438.87M | 416.82M | 520.71M | 631.96M | Total Assets |
| 1.19B | 1.19B | 748.96M | 587.81M | 700.12M | 782.62M | Total Debt |
| 51.99M | 51.99M | 57.20M | 62.00M | 56.13M | 44.46M | Net Debt |
| -267.59M | -267.59M | -131.45M | -52.85M | -91.31M | -281.57M | Total Liabilities |
| 454.96M | 454.96M | 317.20M | 187.40M | 159.23M | 155.61M | Stockholders Equity |
| 732.79M | 732.79M | 431.75M | 400.41M | 540.89M | 627.01M |
| Cash Flow | Free Cash Flow | ||||
| -129.64M | 157.20M | -23.35M | -114.03M | -126.78M | -143.75M | Operating Cash Flow |
| -129.64M | 157.72M | 16.70M | -114.03M | -125.66M | -136.17M | Investing Cash Flow |
| -9.22M | -30.54M | 32.00M | 73.24M | -71.10M | 192.51M | Financing Cash Flow |
| 11.73M | 6.84M | 25.13M | 8.20M | 18.16M | 81.00M |
ACADIA Pharmaceuticals Technical Analysis
Negative
17.19
Price Trends
18.40
Negative
17.33
Negative
16.73
Positive
Market Momentum
-0.25
Positive
36.01
Neutral
3.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACAD, the sentiment is Negative. The current price of 17.19 is below the 20-day moving average (MA) of 18.96, below the 50-day MA of 18.40, and above the 200-day MA of 16.73, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 3.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACAD.
ACADIA Pharmaceuticals Risk Analysis
ACADIA Pharmaceuticals disclosed 55 risk factors in its most recent earnings report. ACADIA Pharmaceuticals reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ACADIA Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.87B | 12.64 | 38.89% | ― | 31.85% | ― | |
69 Neutral | $13.95B | ― | -8.58% | ― | 46.62% | 50.50% | |
68 Neutral | $11.05B | 33.69 | 14.16% | ― | 24.81% | 33.67% | |
52 Neutral | $785.60M | ― | -23.34% | ― | 47.92% | 17.84% | |
51 Neutral | $5.79B | ― | -231.63% | ― | 42.53% | -15.29% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
43 Neutral | $446.97M | ― | -63.37% | ― | -52.30% | 27.13% |
* Healthcare Sector Average
Performance Comparison
ACAD
ACADIA Pharmaceuticals
17.19
-2.79
-13.96%
NBIX
Neurocrine
110.87
-26.87
-19.51%
PRTA
Prothena
14.60
-12.94
-46.99%
ITCI
Intra-Cellular Therapies
131.25
66.88
103.90%
SAGE
SAGE Therapeutics
7.40
-12.95
-63.64%
AXSM
Axsome Therapeutics
118.78
49.39
71.18%
ACADIA Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -9.53% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results, pipeline expansion, and global growth plans, but also acknowledged challenges in revenue guidance due to pricing and regulatory uncertainties. Despite these hurdles, the company remains optimistic about its future growth and strategic initiatives.Highlights
Strong Financial Performance
Record quarterly revenues with DAYBUE sales reaching $96.7 million in Q4, up 11% year-over-year, and full-year sales at $348.4 million, up 97% from 2023. NUPLAZID sales hit $162.9 million in Q4, up 13% year-over-year, with full-year sales at $609.4 million, up 11%.
Pipeline Expansion
Introduction of ACP-711 for essential tremor and the addition of a second indication for ACP-204 in Lewy Body Dementia Psychosis. A broader pipeline with programs spanning neuroscience and rare diseases was disclosed.
Global Expansion Plans
Submission of a marketing application with the European Medicines Agency for trofinetide, anticipating EMA approval in Q1 2026. First DAYBUE sales in Canada expected in Q3 2025 and plans for managed access programs in Europe.
Financial Guidance for 2025
Total revenues expected to be in the range of $1.03 billion to $1.095 billion. DAYBUE U.S. net sales are projected to be between $380 million and $405 million, while NUPLAZID sales are expected to range from $650 million to $690 million.
Strong Cash Position
Ending 2024 with a cash balance of $756 million, up from $438.9 million at the end of 2023, primarily driven by cash flows from operations and the sale of a priority review voucher.
Lowlights
Revenue Guidance Challenges
DAYBUE's guidance accounts for potential sequential decline in Q1 due to seasonality and pricing adjustments. NUPLAZID's guidance is wider due to uncertainties related to Medicare Part D redesign.
Increased SG&A Expenses
SG&A expenses increased to $488.4 million in 2024 from $406.6 million in 2023, driven by marketing costs and one-time CEO transition expenses.
Regulatory and Competitive Landscape Concerns
Potential challenges in obtaining EU approval and achieving favorable reimbursement for DAYBUE. Competitive landscape for Prader-Willi syndrome treatment could impact future market positioning.
Company Guidance
During the ACADIA Pharmaceuticals conference call, leadership provided a comprehensive overview of the company's fiscal performance for 2024 and guidance for 2025. The company reported total revenues of $957.8 million in 2024, reflecting a 32% increase year-over-year, with DAYBUE and NUPLAZID contributing $348.4 million and $609.4 million, respectively. DAYBUE achieved a 97% increase in sales compared to 2023, while NUPLAZID saw an 11% increase. ACADIA projected 2025 total revenues to range from $1.03 billion to $1.095 billion, with DAYBUE expected to generate $380 million to $405 million in U.S. net sales and NUPLAZID anticipated to bring in $650 million to $690 million. The company highlighted a 15% quarter-over-quarter improvement in DAYBUE patient discontinuations and a 13% year-over-year growth in NUPLAZID's fourth-quarter sales. ACADIA also discussed strategic initiatives to drive growth, including expanding commercial leadership and launching direct-to-consumer campaigns. Additionally, the company outlined plans for international expansion, with EMA approval for trofinetide anticipated in the first quarter of 2026, and emphasized the depth and potential of its pipeline across neuroscience and neuro rare diseases.ACADIA Pharmaceuticals Corporate Events
Executive/Board Changes
Acadia Pharmaceuticals Announces Leadership Change Amid COO Departure
Negative
Nov 20, 2024
Acadia Pharmaceuticals Inc. announced the involuntary termination of Brendan Teehan, its Executive Vice President and COO, effective immediately, with plans for him to assist in transitioning his duties until the end of 2024. During this period, CEO Catherine Owen Adams will take over his responsibilities, leveraging her extensive 30-year experience in the pharmaceutical sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.