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Here's Why Acadia Pharmaceuticals Inc. Is Soaring Today

What happened

In response to Acadia Pharmaceuticals (NASDAQ: ACAD) reporting blow-out earnings and sharing upbeat guidance, shares of the commercial-stage biopharma, which focuses on diseases of the central nervous system, were trading 13.9% higher as of 1:35 p.m. EDT on Wednesday. 

So what

Here's a review of the key financial numbers from the second quarter:

  • Revenue from sales of the company's Parkinson's disease psychosis (PDP) drug Nuplazid totaled $30.5 million -- far ahead of the $19.6 million that Wall Street had expected. However, it should be noted that the figure included a one-time benefit of $3.6 million because the company transitioned its revenue recognition method of accounting to the sell-in method.
  • Net loss was $67.4 million, or $0.55 per share -- far lower than $0.71 loss that market watchers had anticipated. 
  • Acadia's cash balance at quarter end was $417 million. 
  • Management guided for full-year sales of Nuplazid to land between $105 million and $115 million. The midpoint of this range is far ahead of the $94 million in revenue that Wall Street had projected.

Acadia also shared a few non-financial highlights from the quarter with investors:

  • The company held an end-of-phase-2 meeting with the FDA related to its Alzheimer's disease psychosis program. Management says that the meeting went well, and that a phase 3 study will kick off in the next few months.
  • 25 new sales reps were deployed to expand the company's focus on the long-term care market. The company now has more than 150 total sales reps deployed in the field. 

Given the better-than-expected Q2 results, upbeat guidance, and positive meeting with the FDA, it is easy to understand why shares are rising today.

Image source: Getty Images.

Now what

Acadia's Q2 results continue to support the idea that Nuplazid is off to a fast start. That's great news for investors, and illustrates the benefits of entering a market where there is no competition in sight

Looking ahead, Acadia will be presenting data from its phase 2 Alzheimer's disease psychosis (ADP) trial at a medical conference in November. Since ADP represents a larger market opportunity for Nupalzid than PDP, it remains a must-watch program for shareholders.

Beyond that, Acadia's report shows it's having success at moving its clinical pipeline forward. Long-term shareholders have plenty of reasons to remain optimistic about this company's future.

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Brian Feroldi has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.