Release Date: May 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ACADIA Pharmaceuticals Inc (ACAD, Financial) reported a significant revenue increase of 74% in Q1 2024 compared to Q1 2023, with total revenues reaching $205.8 million.
- NUPLAZID, a key product for ACADIA Pharmaceuticals Inc (ACAD), continues to perform well with sales increasing by 10% from the previous year, demonstrating strong market presence and growth in the Parkinson's disease psychosis sector.
- DAYBUE, launched in April 2023, generated $75.9 million in sales during its first quarter on the market, capturing approximately 25% of the diagnosed Rett syndrome market.
- ACADIA Pharmaceuticals Inc (ACAD) maintains a robust pipeline with promising late-stage assets, including treatments for Prader-Willi syndrome and Alzheimer's disease psychosis, which are progressing well in clinical trials.
- The company has a strong financial position with a cash balance of $470.5 million as of March 31, 2024, providing a solid foundation for future investments and growth.
Negative Points
- Despite overall growth, DAYBUE experienced a sequential decline of 13% in sales compared to the fourth quarter of 2023, attributed to seasonal dynamics and higher rates of patient discontinuation.
- ACADIA Pharmaceuticals Inc (ACAD) faces challenges with early discontinuations of DAYBUE, particularly within the first few months of treatment, which may impact long-term patient retention and drug efficacy perception.
- The company noted variability in the application of GI management strategies for DAYBUE, indicating a need for improved and consistent practices across prescribing physicians.
- While NUPLAZID continues to generate substantial revenue, the overall Parkinson's disease market remains largely flat, which could limit potential growth opportunities for this product.
- ACADIA Pharmaceuticals Inc (ACAD) is still in the process of establishing DAYBUE in international markets, with necessary approvals pending in regions like Europe and Canada, which could delay potential revenue streams from these markets.
Q & A Highlights
Q: On the business development front, how would you characterize your appetite today here? And can you speak to the amount of capital you would ideally allocate to BD activities and the amount of risk you would be willing to take on in terms of stage?
A: Stephen R. Davis, President, CEO & Director of ACADIA Pharmaceuticals, responded that business development remains a crucial part of their strategy, with active engagement in exploring interesting opportunities. The amount of capital allocated to individual deals depends on specific circumstances, but the company is open to both early and late-stage deals, focusing more on pre-commercial assets.
Q: On DAYBUE, you talked about net patient adds in each of the last 6 weeks. Would the correct interpretation be that you expect this to continue such that you are comfortable to reiterate the guide today?
A: Mark C. Schneyer, Executive VP & CFO, confirmed that they expect net patient adds to continue positively, supporting the reiteration of their guidance range.
Q: Can you talk about the percentage of diagnosed patients that have started DAYBUE at any time, given the 50% long-term prescription?
A: Brendan P. Teehan, Executive VP, COO & Head of Commercial, clarified that slightly more than 25% of diagnosed Rett patients have initiated therapy with DAYBUE. He also discussed the restart rates and the impact of GI management plans on these rates.
Q: Regarding new patient starts, to what extent do you think there will be some degree of predictability or maybe some stability on anticipating a more stable rate of new starts, especially as you think about broadening to beyond the centers of excellence?
A: Brendan P. Teehan addressed the question by noting an expected upward increase in new patient starts, influenced by new patient starts and net patients, with a decline in numerical discontinuations contributing to a more consistent rate of patient adds week over week.
Q: You mentioned that going forward, you expect a significant portion of the growth to come from non-high volume -- sorry, non-COE high-volume centers as well as community centers. How are you thinking about the commercial effort in educating and reaching these physicians so that they can start patients on therapy appropriately with the titration schedule that works and enables patients to stay on drug longer?
A: Brendan P. Teehan responded by emphasizing the importance of real-world benefits and the success stories of DAYBUE treatment to motivate both healthcare professionals (HCPs) and families to initiate therapy. He also mentioned the company's efforts to reach patients wherever they are, utilizing claims data to track down relevant physicians effectively.
Q: Could you clarify what the gross to net right now is? And since you have reached 50% penetration in COEs, could you comment on the level of penetration that you could reach in non-COEs over time? And where you can push the COEs, can you add 50, where can you go?
A: Mark C. Schneyer and Brendan P. Teehan addressed the question by discussing the gross to net expectations and the potential for increasing penetration in both COEs and non-COEs. They expressed optimism about the momentum in COEs and the rising rates of penetration expected in high-volume institutions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
