SAN DIEGO - Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) has announced an exclusive worldwide licensing agreement with Saniona (OMX: SANION) for the development and commercialization of SAN711, a new drug candidate for essential tremor. The company plans to initiate a Phase 2 study for SAN711 in 2026, targeting this neurological condition characterized by involuntary shaking.
The licensing agreement includes an upfront payment of $28 million to Saniona, with potential milestone payments that could reach up to $582 million. Additionally, Saniona may receive tiered royalties on net sales of any commercial products that result from the development of SAN711. These milestone payments are contingent upon achieving development and commercial milestones for potential first and second indications, as well as sales thresholds.
Acadia's CEO, Catherine Owen Adams, stated that the agreement to license SAN711 is part of their commitment to innovating treatments for central nervous system disorders. She highlighted the lack of recent advancements in essential tremor treatments and expressed the company's intention to leverage its expertise in the field to develop SAN711.
As per the terms of the agreement, Acadia will oversee the clinical development, regulatory submissions, and global commercialization of SAN711. The company will also financially support Saniona's ongoing Phase 1 study and preparations for Phase 2.
Acadia Pharmaceuticals has a history of developing treatments for neurological conditions, including the first FDA-approved drug for hallucinations and delusions associated with Parkinson’s disease psychosis and a treatment for Rett syndrome.
The press release also contains forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements are based on current expectations and assumptions and are subject to change. Acadia does not undertake any obligation to update forward-looking statements after the date of the press release.
This news article is based on a press release statement and aims to present the facts regarding the licensing agreement and the development of SAN711 for essential tremor.
In other recent news, Acadia Pharmaceuticals has seen significant changes in its executive team, with Brendan Teehan, the Executive Vice President, Chief Operating Officer, and Head of Commercial, departing from his role. Catherine Owen Adams, the company's Chief Executive Officer, will temporarily take over Teehan's responsibilities until a successor is named. Teehan will continue in a non-executive capacity until the end of 2024 to ensure a smooth transition of duties.
In the realm of earnings and revenue, Acadia Pharmaceuticals disclosed its third quarter 2024 results, placing emphasis on the strong performance of its commercial franchises DAYBUE and NUPLAZID. The company's management expressed confidence in the continued growth and market performance of these franchises. Notably, no specific challenges or misses were mentioned during the earnings call, indicating a positive outlook.
The company also provided updates on its ongoing research and development efforts, highlighting the potential for future growth. These are among the recent developments from Acadia Pharmaceuticals, as it continues to navigate the competitive pharmaceutical preparations sector.
InvestingPro Insights
Acadia Pharmaceuticals' recent licensing agreement for SAN711 aligns with its strong financial position and growth prospects. According to InvestingPro data, the company boasts a market capitalization of $2.7 billion and has demonstrated impressive revenue growth of 47.06% over the last twelve months as of Q3 2024. This robust growth trajectory supports Acadia's ability to invest in new drug candidates like SAN711.
InvestingPro Tips reveal that Acadia holds more cash than debt on its balance sheet, providing financial flexibility for strategic moves such as the $28 million upfront payment to Saniona. Additionally, the company's net income is expected to grow this year, which could help fund the planned Phase 2 study for SAN711 in 2026.
The company's P/E ratio of 20.9 suggests a reasonable valuation relative to its earnings, especially considering the potential for future growth from new drug developments. An InvestingPro Tip indicates that Acadia is trading at a low P/E ratio relative to its near-term earnings growth, which may be attractive to investors looking at the company's long-term prospects in the central nervous system disorder treatment market.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Acadia Pharmaceuticals, providing deeper insights into the company's financial health and market position.
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