Company and Officers to Vigorously Contest Verdict
SAN DIEGO, Aug. 24 /PRNewswire-FirstCall/ —ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD), a biopharmaceutical company utilizing innovative technology to fuel drug discovery and clinical development of novel treatments for central nervous system disorders, today announced that a verdict has been rendered in a civil action brought by a former employee of ACADIA.
The civil action against ACADIA and two of its executive officers, Robert E. Davis, Ph.D., and Mark R. Brann, Ph.D., was brought in San Diego Superior Court by a former employee whose employment was terminated. A jury rendered a verdict against ACADIA and Dr. Davis for sexual harassment, and against ACADIA and Dr. Brann for retaliation.
ACADIA, Dr. Davis and Dr. Brann strongly disagree with, and do not believe that the facts support, the verdict rendered. These parties intend to contest the verdict vigorously through all available legal recourse through the trial court and the appellate courts.
In connection with the verdict, the jury awarded compensatory damages in the aggregate amount of $3.9 million and punitive damages in the aggregate amount of $2.2 million against ACADIA. The jury also awarded punitive damages against Dr. Davis and Dr. Brann. ACADIA maintains employment practices liability insurance in the amount of $3 million, which may be used to offset a portion of the compensatory damages as well as fees and expenses incurred in connection with this litigation.
ACADIA noted that it takes seriously its responsibilities to create a harassment free workplace for all employees and believes it has long-standing appropriate policies and procedures in place to prevent harassment from occurring.
On a business level, ACADIA also noted that it has continued to make considerable progress in its lead clinical programs. ACADIA believes that it is well positioned to deliver a series of clinical milestones throughout the remainder of 2005 and into 2006 as it continues to advance its pipeline of innovative drugs to treat central nervous system disorders and other areas of unmet medical need.
About ACADIA Pharmaceuticals
ACADIA Pharmaceuticals is a biopharmaceutical company utilizing innovative technology to fuel drug discovery and clinical development of novel treatments for central nervous system disorders. ACADIA currently has four drug programs in clinical development as well as a portfolio of preclinical and discovery assets directed at large unmet medical needs, including schizophrenia, Parkinson's disease, neuropathic pain, and glaucoma. Using its proprietary drug discovery platform, ACADIA has discovered all of the drug candidates in its product pipeline. ACADIA's corporate headquarters is located in San Diego, California and it maintains research and development operations in both San Diego and Scandinavia.
Forward-Looking Statements
Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements include but are not limited to statements related to the defendants' intent to challenge the verdict, the availability of insurance proceeds to offset a portion of the compensatory damages award against the defendants, progress in ACADIA's clinical programs and its ability to deliver a series of clinical milestones and advance its drug pipeline. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the uncertainty associated with litigation. There are no assurances that ACADIA or the individual defendants will succeed in any post-trial motion or appeal. For a discussion of these and other factors, please refer to ACADIA's annual report on Form 10-K for the year ended December 31, 2004 filed with the United States Securities and Exchange Commission as well as other subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are qualified in their entirety by this cautionary statement and ACADIA undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.
Contacts:
ACADIA Pharmaceuticals Inc.
Lisa Barthelemy, Director, Investor Relations
+1 858-558-2871
SOURCE ACADIA Pharmaceuticals Inc.
08/24/2005