SAN DIEGO, Jan. 17 /PRNewswire-FirstCall/ —ACADIA Pharmaceuticals Inc.(Nasdaq: ACAD), a biopharmaceutical company utilizing innovative technology tofuel drug discovery and clinical development of novel treatments for centralnervous system (CNS) disorders, today announced that Sepracor Inc.(Nasdaq: SEPR) has completed the second $10 million purchase of ACADIA commonstock in connection with the collaboration between the two companies formed inJanuary 2005. Sepracor's purchase was made at a price of approximately$12.29 per share, which represented a 25 percent premium to the 30-daytrailing average closing price as of the one-year anniversary of thecollaboration, and resulted in the issuance of 813,393 shares of ACADIA commonstock.
"We are excited with the progress of our collaboration with ACADIA," saidMark H.N. Corrigan, M.D., Executive Vice President, Research and Developmentof Sepracor. "Their strong CNS discovery expertise and leadership position inthe area of muscarinic receptor research may lead to exciting new portfoliocandidates for the treatment of CNS disorders."
ACADIA and Sepracor established their research and developmentcollaboration in January 2005 to develop new drug candidates from ACADIA'spreclinical muscarinic receptor program for treatment of CNS disorders. Thecollaboration includes an investigation of ACADIA's selective m1 agonists fortreatment of schizophrenia and other neuropsychiatric disorders. Muscarinicreceptors respond to the neurotransmitter acetylcholine. Compounds thatselectively act on these receptors may have utility in the treatment of CNSdisorders. The collaboration also includes an option for Sepracor to select apreclinical compound from ACADIA's 5-HT2A program for use in combination withLUNESTA(TM) brand eszopiclone, Sepracor's insomnia drug, for sleep-relatedindications. 5-HT2A antagonists have been shown in clinical studies to affectsleep architecture, resulting in extended periods of slow-wave sleep, whichmay have a positive effect on sleep quality.
"Sepracor's high-quality research and development team and thecomplementary nature of our organizations make Sepracor an ideal partner forACADIA," said Mark R. Brann, Ph.D., President and Chief Scientific Officer ofACADIA. "We are gratified by the confidence that Sepracor has expressed inACADIA and our collaboration."
In connection with the collaboration, Sepracor has purchased an aggregateof $20 million of ACADIA common stock. Pursuant to the collaboration,Sepracor is also providing ACADIA with research funding over a three-yearterm, and if certain conditions are met, will be required to pay ACADIAmilestone payments as well as royalties on worldwide product sales. Assumingthe successful development of a single product in the muscarinic program,Sepracor will be required to pay ACADIA up to $40 million in aggregatepayments plus applicable royalties. In addition, should the collaborationsuccessfully develop a combination product with LUNESTA, Sepracor will also beobligated to pay ACADIA up to approximately $35 million in aggregate paymentsplus applicable royalties.
About ACADIA Pharmaceuticals
ACADIA is a biopharmaceutical company utilizing innovative technology tofuel drug discovery and clinical development of novel treatments for CNSdisorders. ACADIA currently has four drug programs in clinical development aswell as a portfolio of preclinical and discovery assets directed at largeunmet medical needs, including schizophrenia, Parkinson's disease, neuropathicpain, and glaucoma. All of the drug candidates in ACADIA's product pipelineemanate from discoveries made using its proprietary drug discovery platform.ACADIA's corporate headquarters is located in San Diego, California and itmaintains research and development operations in both San Diego and Malmo,Sweden.
About Sepracor
Sepracor Inc. is a research-based pharmaceutical company dedicated totreating and preventing human disease through the discovery, development andcommercialization of innovative pharmaceutical products that are directedtoward serving unmet medical needs. Sepracor's drug development program hasyielded an extensive portfolio of pharmaceutical compound candidates with afocus on respiratory and central nervous system disorders. Sepracor'scorporate headquarters are located in Marlborough, Massachusetts.
Forward-Looking Statements
Statements in this press release that are not strictly historical innature are forward-looking statements. These statements include but are notlimited to statements related to potential milestone and royalty paymentsunder the collaboration, the research and development of drug candidates underthe collaboration, future funding of the collaboration research, the safety,efficacy and potential benefits of any compounds discovered or developed underthe collaboration, the progress and timing of ACADIA's drug discovery anddevelopment programs and related trials, and the potential benefits to bederived from ACADIA's technology or discovery and development candidates.These statements are only predictions based on current information andexpectations and involve a number of risks and uncertainties. Actual eventsor results may differ materially from those projected in any of suchstatements due to various factors, including the risks and uncertaintiesinherent in drug discovery, development and commercialization, collaborationswith others, and litigation. For a discussion of these and other factors,please refer to ACADIA's annual report on Form 10-K for the year endedDecember 31, 2004 filed with the United States Securities and ExchangeCommission as well as other subsequent filings with the Securities andExchange Commission. You are cautioned not to place undue reliance on theseforward-looking statements, which speak only as of the date hereof. Thiscaution is made under the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995. All forward-looking statements are qualifiedin their entirety by this cautionary statement and ACADIA undertakes noobligation to revise or update this press release to reflect events orcircumstances after the date hereof.
Lunesta is a trademark of Sepracor Inc.
Contacts:
ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director, Investor Relations
Thomas H. Aasen, Vice President and Chief Financial Officer
(858) 558-2871