12:00 AM
Jun 23, 2008
 |  BioCentury  |  Finance

Ebb & Flow

Having just lost its second most advanced program and with no near-term milestones in sight, Acadia is likely to find itself in the less than optimal position of having to raise money ahead of its next inflection point.

Shares of Acadia(NASDAQ:ACAD) fell $3.66 (43%) to $4.83 on Monday after its ACP-104 failed in a Phase IIb trial in schizophrenia. As a result, the neurology company said it will discontinue development of the metabolite of clozabine (see B12).

The company is now focused on its lead candidate, pimavanserin (ACP-103), which is in Phase III testing to treat Parkinson’s disease psychosis (PDP). But pimavanserin is not expected to report data from the first of its two Phase III PDP trials until some time in 2009.

Acadia has said it only has cash through 2009, so if it waits until it has data in hand, it would mean going on the road with less than a year of cash.

At March 31, Acadia had $106.5 million in cash. It posted an operating loss of $17.6 million for 1Q08 and $62.7 million for FY07. But on a conference call, CFO Thomas Aasen noted the company had $16.5 million of ACP-104 related costs in FY07, which had fallen to $1.4 million in 1Q08.

The company is seeking a partner to help advance pimavanserin in other indications, including schizophrenia, sleep maintenance, insomnia, chronic pain and glaucoma and it plans to remain unpartnered in PDP.

On the week, Acadia lost $4.41 (52%) to $4.08. Its market cap now is $151.3 million.

Organic appetite

Warburg Pincus announced another specialty pharma deal in which it has opened up its deep pockets, similar to the support it has already offered to the likes of Eurand (NASDAQ:EURX) and Archimedes (see BioCentury, May 26).

The private equity firm is planning to follow the same model with newly formed Ganic, sizing its investment to the opportunities that present themselves, managing director Jonathan Leff told Ebb & Flow.

The newco is built around the management team, who were all senior executives at specialty pharma MedPointe, which was acquired by Meda (SSE:MEDA) last August for $520 million in cash and about SEK1.7 billion ($243.2 million) in stock (see BioCentury, Aug. 27, 2007).

MedPointe was focused on allergy and respiratory disease, as well as pain. Ganic CEO Paul Edick said the new company hasn’t picked a therapeutic focus, but instead plans to grow “organically,” hence its name. He said management is looking at opportunities across indications, but ultimately intends to focus on two or three.

Initially, Ganic will acquire companies or portfolios of marketed products. Once those are in place, Edick said the company will focus on acquiring pipeline candidates in the established indications.

The team started reviewing potential acquisition and in-licensing opportunities in the spring, after completing a six-month transition at Meda.

Leff said the “amount of...

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