Summary of ACADIA Pharmaceuticals FY Conference Call Company Overview - **Company**: ACADIA Pharmaceuticals (NasdaqGS:ACAD) - **Industry**: Neurological and Rare Diseases - **Conference**: 44th Annual J.P. Morgan Healthcare Conference - **Date**: January 13, 2026 Core Points and Arguments Company Mission and Strategy - ACADIA aims to deliver meaningful innovation to underserved patients with neurological and rare diseases, focusing on first-in-class or best-in-class products [2][4] - The company is advancing its pipeline with several candidates, including Remlifansirin (5-HT2A agonist) and ACP-211 (deuterated ketamine) for major depressive disorder [3][4] Pipeline Developments - **Neurological Franchise**: - NUPLAZID is expected to continue its momentum, with sales projected to reach $1 billion by 2028 [6][11] - Remlifansirin is anticipated to have a peak sales potential of $4 billion across indications [6] - Upcoming milestones include the initiation of phase two studies for ACP-271 and results for Remlifansirin expected between August and October 2026 [5][25] - **Rare Disease Franchise**: - DAYBUE is projected to achieve $700 million in global sales by 2028, driven by the launch of DAYBUE Sticks and expansion into the EU [14][30] - The company has treated over 2,000 patients with DAYBUE since its launch in 2023, with a 55% persistency rate at 12 months [13] Market Opportunities - There are approximately 1 million Parkinson's patients in the U.S., with 50% expected to develop hallucinations or delusions, presenting a significant market opportunity for NUPLAZID [10] - The company sees a potential growth opportunity in treating essential tremor, which affects about 7 million patients in the U.S. [23] Commercial Strategy - ACADIA plans to increase its commercial field force for NUPLAZID by 30% and leverage AI for better targeting and engagement [12][8] - The company is focused on expanding its presence in international markets, with DAYBUE already approved in three markets and anticipated approval in Europe [9][27] Financial Projections - Combined net sales for NUPLAZID and DAYBUE are projected to reach $1.7 billion by 2028 [6][30] - The company expects to see an uptick in operating expenses due to investments in commercial expansion and pipeline development [32][33] Additional Important Content - The company is committed to utilizing AI across various functions, including R&D and regulatory processes, to enhance efficiency and decision-making [7][9] - ACADIA is exploring business development opportunities in rare diseases beyond neurology, with a focus on late-stage products [34][35] - The company emphasizes the importance of patient-centric approaches in its clinical trials and product development [18][21] This summary encapsulates the key points discussed during the conference call, highlighting ACADIA Pharmaceuticals' strategic direction, pipeline developments, market opportunities, and financial outlook.

J.P. Morgan Healthcare Conference January 13, 2026 Catherine Owen Adams Chief Executive Officer 1 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact and can be identified by terms such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," ...

Core Insights - Investors in the Medical - Biomedical and Genetics sector may consider Fortrea Holdings Inc. (FTRE) and Acadia Pharmaceuticals (ACAD) as potential undervalued stocks [1] Group 1: Company Rankings - Fortrea Holdings Inc. has a Zacks Rank of 2 (Buy), while Acadia Pharmaceuticals has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for FTRE [3] Group 2: Valuation Metrics - FTRE has a forward P/E ratio of 22.95, significantly lower than ACAD's forward P/E of 38.66, suggesting FTRE may be undervalued [5] - The PEG ratio for FTRE is 0.51, compared to ACAD's PEG ratio of 7.12, indicating FTRE's expected earnings growth is more favorable [5] - FTRE's P/B ratio is 2.72, while ACAD's P/B ratio is 4.94, further supporting the notion that FTRE is more attractively valued [6] - FTRE has earned a Value grade of B, whereas ACAD has a Value grade of C, reinforcing FTRE's position as the better option for value investors [6]

Core Insights - UBS has released its list of highest conviction stocks for 2026, focusing on companies across various sectors that are expected to outperform the broader market [1][3] Company Summaries - **Acadia Pharmaceuticals (Ticker: ACAD)** - Expected return for 2025 is +46% - The company is viewed positively due to its management's execution on growth initiatives for new drugs, particularly the upcoming trial results for ACP-204 related to Alzheimer's disease psychosis, expected in mid-2026 [4] - **Alliant Energy Corp (Ticker: LNT)** - Expected return for 2025 is +11% - The company is considered undervalued and is likely to benefit from the ongoing data center boom in 2026, with expectations of 2-4GW of upside opportunities [5][6] - **Amazon (Ticker: AMZN)** - Expected return for 2025 is +0.3% - As the only stock from the Magnificent Seven on UBS' list, Amazon is anticipated to benefit from the AI boom and advancements in sports licensing and same-day delivery in its e-commerce operations [8]

Core Viewpoint - Acadia Pharmaceuticals Inc. has received FDA approval for DAYBUE® STIX (trofinetide), a new oral solution formulation for treating Rett syndrome in patients aged two years and older [1] Group 1: Product Details - DAYBUE® STIX is a dye- and preservative-free powder formulation of trofinetide [1] - The new formulation is expected to maintain the same efficacy and safety profile as the existing DAYBUE oral solution [1] Group 2: Target Patient Population - The approved treatment is intended for both adult and pediatric patients aged two years and older suffering from Rett syndrome [1]

Core Insights - The article provides an analysis of a specific company, focusing on its financial performance and market position, but does not offer exhaustive details or personalized investment advice [2][3] Financial Performance - The company reported a significant increase in revenue, with a year-over-year growth of 15%, reaching $1.5 billion in the last quarter [2] - Operating income also saw a rise, increasing by 10% to $300 million, indicating improved operational efficiency [2] Market Position - The company has strengthened its market share, now holding 25% of the industry, up from 22% last year, reflecting successful strategic initiatives [2] - Competitive analysis shows that the company is outperforming its main rivals, which have only seen a 5% growth in the same period [2] Future Outlook - Analysts project continued growth for the company, with expectations of a 12% increase in revenue for the next fiscal year, driven by new product launches and market expansion [2] - The company is also exploring potential mergers and acquisitions to further enhance its market presence and capabilities [2]

Company Overview - ACADIA Pharmaceuticals is a mid-cap biotechnology company focused on developing and commercializing therapies for central nervous system disorders, leveraging a focused pipeline and established commercial infrastructure to address significant unmet needs in neurology and psychiatry [6] - The company generates revenue primarily through the commercialization of NUPLAZID for Parkinson's disease psychosis, with an advancing pipeline that includes late-stage candidates for Alzheimer's disease psychosis and Rett syndrome [9] - As of the latest report, ACADIA's market capitalization is $4.4 billion, with a trailing twelve-month revenue of $1 billion and net income of $261.2 million [4] Recent Developments - Braidwell, a Connecticut-based fund, has established a new position in ACADIA Pharmaceuticals, acquiring nearly 2.4 million shares valued at approximately $50.8 million as of September 30, which represents 2.1% of the fund's total reportable U.S. equity assets for the quarter [2] - The stock price of ACADIA as of Wednesday is $25.88, reflecting a 59% increase over the past year, significantly outperforming the S&P 500, which has risen 13% in the same period [3] Financial Performance - ACADIA has recently delivered double-digit revenue growth, with expanding sales for both NUPLAZID and DAYBUE, and has more than doubled its net income in the third quarter [7] - The company has raised its full-year guidance and has nearly $850 million in cash on the balance sheet, positioning it well for continued growth [10] Market Position and Outlook - Despite the stock being more than 50% below its pandemic peak, the fundamentals of ACADIA appear stronger than in previous years, suggesting potential for a more durable recovery [7][12] - The confidence shown by a major biotech-focused fund stepping in indicates a positive trajectory for the company, emphasizing the importance of execution in converting late-stage assets into commercial successes [11]

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Financial Data and Key Metrics Changes - The company expects over $1 billion in sales from its two commercial products, Nuplazid and Daybue, for the current year [4] - The guidance for Nuplazid sales has been narrowed to $685-$695 million, reflecting an upward adjustment [24][26] - The company maintains a strong balance sheet with over $800 million in cash and no debt, indicating a solid financial position for future investments [5][108] Business Line Data and Key Metrics Changes - Nuplazid has seen a 20% increase in both referrals and new patient starts, marking the strongest quarter in new patient starts in a long time [10] - Daybue has experienced significant increases in new referrals, the largest since Q3 2024, indicating positive momentum from recent investments [12] Market Data and Key Metrics Changes - The company is expanding its commercial footprint in the U.S. and plans to enter the European market with expected approval next year [12][59] - The market for Alzheimer's disease psychosis (ADP) is significantly larger than that for Parkinson's disease psychosis (PDP), presenting a substantial growth opportunity [73] Company Strategy and Development Direction - The company is focused on expanding its sales force and enhancing marketing efforts for both Nuplazid and Daybue to drive growth [11][45] - The strategy includes leveraging existing data and insights to optimize targeting and positioning of the sales force for Nuplazid [16] - The company plans to market Daybue independently in Europe, building a team to support this initiative [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued meaningful growth for both franchises, with plans to provide guidance for Nuplazid next year [31] - The company is mindful of potential impacts from legislative changes but does not anticipate significant disruptions to profitability [36][37] - Management highlighted the importance of ongoing investments in R&D and commercial operations to support long-term growth [110] Other Important Information - The company has a robust pipeline, with ACP-204 being a key focus for upcoming trials in Alzheimer's disease psychosis and Lewy body dementia psychosis [5][66] - Management emphasized the importance of patient retention and the ongoing benefits of Daybue for patients who remain on therapy [48] Q&A Session Summary Question: Can you summarize the commercial performance for Nuplazid and Daybue? - Management noted strong growth for both products, with Nuplazid seeing a significant increase in new patient starts and Daybue benefiting from expanded commercial efforts [10][12] Question: What is the guidance for Nuplazid sales this year? - The guidance has been narrowed to $685-$695 million, reflecting an upward adjustment from previous estimates [24][26] Question: How does the IRA negotiations impact the company? - Management indicated that while there may be some price decreases in the future, the business will remain profitable and capable of supporting growth initiatives [36][37] Question: What is the strategy for marketing Daybue in Europe? - The company plans to market Daybue independently in Europe, starting with Germany, and has begun building a team to support this effort [58][59] Question: What are the expectations for the upcoming trials for ACP-204? - Management expressed excitement about the phase 2 readout for ACP-204 in Alzheimer's disease psychosis, viewing it as a higher probability of success due to existing data [66][72]

Financial Data and Key Metrics Changes - The company expects over $1 billion in sales from its two commercial products, NUPLAZID and DAYBUE, for the current year [5] - NUPLAZID's sales guidance for the year has been narrowed to a range of $685 million to $695 million, indicating an upward shift from previous estimates [23][24] - The company maintains a strong balance sheet with over $800 million in cash and no debt, allowing for continued investment in business development [6][105] Business Line Data and Key Metrics Changes - NUPLAZID has seen a 20% increase in both referrals and new patient starts, marking the strongest quarter in new patient starts in a long time [10] - DAYBUE has experienced significant increases in new referrals, the largest since Q3 2024, indicating early success from increased investment in U.S. infrastructure [12] - The company plans to expand its customer-facing field force to further drive growth and profitability for both NUPLAZID and DAYBUE [11] Market Data and Key Metrics Changes - The company is preparing for European approval of DAYBUE next year, aiming to expand its market presence outside the U.S. [12][55] - The market for Alzheimer's disease psychosis (ADP) is significantly larger than that for Parkinson's disease psychosis (PDP), presenting a substantial growth opportunity [70] Company Strategy and Development Direction - The company is focused on expanding its commercial footprint and increasing investments in marketing and sales to enhance product awareness and penetration [11][12] - A robust pipeline is in place, with ACP-204 being the most advanced program targeting Alzheimer's disease psychosis and Lewy body dementia psychosis [6][61] - The company is committed to maintaining profitability while navigating potential price decreases due to future negotiations under the IRA [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued meaningful growth for both franchises, with plans to provide guidance on peak sales for NUPLAZID next year [28] - The company is mindful of potential legislative impacts but does not anticipate significant disruptions to its growth strategy in the near term [34] Other Important Information - The company has a stable patient base for DAYBUE, with over 70% of patients on therapy for 12 months or longer, indicating strong treatment adherence [40] - The company is actively building a team in Europe to prepare for the launch of DAYBUE, with a focus on establishing scientific conversations and market access [55] Q&A Session Summary Question: Can you provide an overview of the commercial performance for NUPLAZID and DAYBUE? - Management highlighted a strong quarter for NUPLAZID with a 20% increase in new patient starts and significant growth for DAYBUE due to increased referrals [10][12] Question: What is the sales guidance for NUPLAZID this year? - The sales guidance has been narrowed to a range of $685 million to $695 million, reflecting an upward adjustment [23][24] Question: How does the IRA impact the company? - Management indicated that while there may be price decreases in the future, the company expects to remain profitable and continue driving growth [34] Question: What is the strategy for expanding DAYBUE in Europe? - The company plans to market DAYBUE independently in Europe, starting with Germany, and has begun building a team to support this effort [55] Question: What are the expectations for the upcoming phase II readout for ACP-204? - Management expressed excitement about the phase II readout for ACP-204, viewing it as a higher probability of success due to prior learnings from pimavanserin [61][62]