Company and Officers to Vigorously Contest Verdict
SAN DIEGO, Aug. 24 /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 disorders, today announced that a verdict has been rendered ina civil action brought by a former employee of ACADIA.
The civil action against ACADIA and two of its executive officers, RobertE. Davis, Ph.D., and Mark R. Brann, Ph.D., was brought in San Diego SuperiorCourt by a former employee whose employment was terminated. A jury rendered averdict against ACADIA and Dr. Davis for sexual harassment, and against ACADIAand Dr. Brann for retaliation.
ACADIA, Dr. Davis and Dr. Brann strongly disagree with, and do not believethat the facts support, the verdict rendered. These parties intend to contestthe verdict vigorously through all available legal recourse through the trialcourt and the appellate courts.
In connection with the verdict, the jury awarded compensatory damages inthe aggregate amount of $3.9 million and punitive damages in the aggregateamount of $2.2 million against ACADIA. The jury also awarded punitive damagesagainst Dr. Davis and Dr. Brann. ACADIA maintains employment practicesliability insurance in the amount of $3 million, which may be used to offset aportion of the compensatory damages as well as fees and expenses incurred inconnection with this litigation.
ACADIA noted that it takes seriously its responsibilities to create aharassment free workplace for all employees and believes it has long-standingappropriate policies and procedures in place to prevent harassment fromoccurring.
On a business level, ACADIA also noted that it has continued to makeconsiderable progress in its lead clinical programs. ACADIA believes that itis well positioned to deliver a series of clinical milestones throughout theremainder of 2005 and into 2006 as it continues to advance its pipeline ofinnovative drugs to treat central nervous system disorders and other areas ofunmet medical need.
About ACADIA Pharmaceuticals
ACADIA Pharmaceuticals is a biopharmaceutical company utilizing innovativetechnology to fuel drug discovery and clinical development of novel treatmentsfor central nervous system disorders. ACADIA currently has four drug programsin clinical development as well as a portfolio of preclinical and discoveryassets directed at large unmet medical needs, including schizophrenia,Parkinson's disease, neuropathic pain, and glaucoma. Using its proprietarydrug discovery platform, ACADIA has discovered all of the drug candidates inits product pipeline. ACADIA's corporate headquarters is located in SanDiego, California and it maintains research and development operations in bothSan Diego and Scandinavia.
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 the defendants' intent to challenge theverdict, the availability of insurance proceeds to offset a portion of thecompensatory damages award against the defendants, progress in ACADIA'sclinical programs and its ability to deliver a series of clinical milestonesand advance its drug pipeline. These statements are only predictions based oncurrent information and expectations and involve a number of risks anduncertainties. Actual events or results may differ materially from thoseprojected in any of such statements due to various factors, including theuncertainty associated with litigation. There are no assurances that ACADIAor 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 annualreport on Form 10-K for the year ended December 31, 2004 filed with the UnitedStates Securities and Exchange Commission as well as other subsequent filingswith the Securities and Exchange Commission. You are cautioned not to placeundue reliance on these forward-looking statements, which speak only as of thedate hereof. This caution is made under the safe harbor provisions of thePrivate Securities Litigation Reform Act of 1995. All forward-lookingstatements are qualified in their entirety by this cautionary statement andACADIA undertakes no obligation to revise or update this press release toreflect 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