SAN DIEGO – Acadia Pharmaceuticals Inc. (NASDAQ:ACAD), a biopharmaceutical company with a market capitalization of $3 billion and robust revenue growth of 47% over the last twelve months, announced today the completion of a significant transaction involving the sale of a Rare Pediatric Disease Priority Review Voucher (PRV). The sale, finalized on Monday, was previously agreed upon through an Asset Purchase Agreement dated November 5, 2024.
The PRV was initially awarded to Acadia in March 2023 following the U.S. Food and Drug Administration’s (FDA) approval of DAYBUE (trofinetide), a treatment for Rett syndrome. This incentive program by the FDA aims to encourage the development of new drugs for rare pediatric diseases.
Acadia received a total of $150 million from the sale of the PRV. This transaction further strengthens the company's already solid financial position, with InvestingPro data showing Acadia maintains more cash than debt and a healthy current ratio of 2.29. In accordance with a Joint Venture and License Agreement with Neuren Pharmaceuticals Limited, dated July 13, 2023, one-third of the net proceeds from the transaction are payable to Neuren.
The completion of this asset disposition follows the expiration of the waiting period stipulated by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Details of the PRV Transfer Agreement were disclosed in Acadia’s Quarterly Report on Form 10-Q for the quarter ending September 30, 2024, and a full description of the agreement will be included in the company’s Annual Report on Form 10-K for the year ending December 31, 2024.
This strategic move by Acadia Pharmaceuticals, a company incorporated in Delaware and based in San Diego, California, represents a notable financial transaction within the pharmaceutical industry. The company specializes in pharmaceutical preparations and has been actively involved in developing treatments for central nervous system disorders.
According to InvestingPro analysis, which rates Acadia's overall financial health as "GREAT," the company appears slightly undervalued and shows strong profitability with $128.5 million in net income over the last twelve months. For detailed insights and 8 additional ProTips about Acadia's financial outlook, subscribers can access the comprehensive Pro Research Report.
Additionally, Acadia announced an executive shakeup with Brendan Teehan, the Executive Vice President, Chief Operating Officer, and Head of Commercial, departing from his role. Owen Adams will temporarily take over Teehan's responsibilities until a successor is named.
The company also entered into an exclusive worldwide licensing agreement with Saniona for the development and commercialization of SAN711, a new drug candidate for essential tremor. The agreement includes an upfront payment of $28 million to Saniona, with potential milestone payments that could reach up to $582 million.
Furthermore, Baird reaffirmed its Outperform rating on shares of Acadia Pharmaceuticals, citing the in-licensing of SAN711 as a strategic move that could benefit the company in the long run.
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