ACADIA Pharmaceuticals (ACAD) 10-Q 9 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	ACAD
Entity Registrant Name	ACADIA PHARMACEUTICALS INC
Entity Central Index Key	1,070,494
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		122,046,442

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 157,383	$ 163,620
Investment securities, available-for-sale	312,098	365,416
Accounts receivable, net	7,660	5,903
Interest and other receivables	1,859	1,237
Inventory	3,881	4,175
Prepaid expenses	6,872	7,546
Total current assets	489,753	547,897
Property and equipment, net	3,471	3,081
Intangible assets, net	6,646	7,015
Restricted cash	2,475	2,375
Other assets	668	785
Total assets	503,013	561,153
Liabilities and stockholders’ equity
Accounts payable	2,166	3,912
Accrued liabilities	38,967	36,029
Deferred revenue	4,132	2,644
Total current liabilities	45,265	42,585
Long-term liabilities	224	157
Total liabilities	45,489	42,742
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 5,000,000 shares authorized at March 31, 2017 and December 31, 2016; no shares issued and outstanding at March 31, 2017 and December 31, 2016
Common stock, $0.0001 par value; 225,000,000 shares authorized at March 31, 2017 and December 31, 2016; 121,986,842 shares and 121,367,169 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	12	12
Additional paid-in capital	1,479,530	1,452,272
Accumulated deficit	(1,022,112)	(933,979)
Accumulated other comprehensive income	94	106
Total stockholders’ equity	457,524	518,411
Total liabilities and stockholders’ equity	$ 503,013	$ 561,153

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	225,000,000	225,000,000
Common stock, shares issued	121,986,842	121,367,169
Common stock, shares outstanding	121,986,842	121,367,169

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Product sales, net	$ 15,286
Collaborative revenue		$ 4
Total revenues	15,286	4
Operating expenses
Cost of product sales	2,263
License fees and royalties	675
Research and development	35,409	22,775
Selling, general and administrative	65,745	27,491
Total operating expenses	104,092	50,266
Loss from operations	(88,806)	(50,262)
Interest income, net	963	500
Net loss	$ (87,843)	$ (49,762)
Net loss per common share, basic and diluted	$ (0.72)	$ (0.45)
Weighted average common shares outstanding, basic and diluted	121,651	111,346

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (87,843)	$ (49,762)
Other comprehensive loss:
Unrealized (loss) gain on investment securities	(11)	307
Foreign currency translation adjustments	(1)	(2)
Comprehensive loss	$ (87,855)	$ (49,457)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net loss	$ (87,843,000)	$ (49,762,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	15,571,000	11,955,000
Amortization of premiums and accretion of discounts on investment securities, available for sale	(113,000)	(234,000)
Amortization of intangible assets	369,000
Depreciation	270,000	138,000
Loss on disposal of assets		5,000
Changes in operating assets and liabilities:
Accounts receivable, net	(1,757,000)
Interest and other receivables	(622,000)	855,000
Inventory	201,000
Prepaid expenses	674,000	(2,107,000)
Restricted cash	(100,000)
Other assets	117,000	(911,000)
Accounts payable	(1,899,000)	(365,000)
Accrued liabilities	2,916,000	(771,000)
Deferred revenue	1,488,000
Long-term liabilities	67,000	(15,000)
Net cash used in operating activities	(70,661,000)	(41,212,000)
Cash flows from investing activities
Purchases of investment securities	(140,746,000)	(240,566,000)
Maturities of investment securities	194,166,000	72,077,000
Purchases of property and equipment	(485,000)	(207,000)
Net cash provided by (used in) investing activities	52,935,000	(168,696,000)
Cash flows from financing activities
Proceeds from issuance of common stock, net of issuance costs	11,490,000	282,991,000
Net cash provided by financing activities	11,490,000	282,991,000
Effect of exchange rate changes on cash	(1,000)	(1,000)
Net (decrease) increase in cash and cash equivalents	(6,237,000)	73,082,000
Cash and cash equivalents
Beginning of period	163,620,000	102,138,000
End of period	157,383,000	175,220,000
Supplemental disclosure of noncash information:
Property and equipment purchases in accounts payable and accrued liabilities	$ 175,000	$ 356,000

Organization and Business

Organization and Business	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Organization and Business	1. Organization and Business ACADIA Pharmaceuticals Inc. (the “Company”), based in San Diego, California, is a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders. The Company was originally incorporated in Vermont in 1993 as Receptor Technologies, Inc. and reincorporated in Delaware in 1997. On April 29, 2016, the U.S. Food and Drug Administration (“FDA”) approved the Company’s first drug, NUPLAZID ® Accordingly, the Company’s financial statements for the first quarter of 2017 include product revenue and other transactions related to the commercialization of NUPLAZID that did not exist in the first quarter of 2016.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	2. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of ACADIA Pharmaceuticals Inc. should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission (the “SEC”). The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. Accounts Receivable Accounts receivable are recorded net of customer allowances for distribution fees, prompt payment discounts, chargebacks, and doubtful accounts. Allowances for distribution fees, prompt payment discounts and chargebacks are based on contractual terms. The Company estimates the allowance for doubtful accounts based on existing contractual payment terms, actual payment patterns of its customers and individual customer circumstances. At March 31, 2017, the Company determined that an allowance for doubtful accounts was not required. No accounts were written off during the periods presented. License Fees and Royalties The Company expenses amounts paid to acquire licenses associated with products under development when the ultimate recoverability of the amounts paid is uncertain and the technology has no alternative future use when acquired. Acquisitions of technology licenses are charged to expense or capitalized based upon management’s assessment regarding the ultimate recoverability of the amounts paid and the potential for alternative future use. The Company has determined that technological feasibility for its product candidates is reached when the requisite regulatory approvals are obtained to make the product available for sale. In connection with the FDA approval of NUPLAZID in April 2016, the Company made a one-time milestone payment of $8.0 million pursuant to its 2006 license agreement with the Ipsen Group in which the Company licensed certain intellectual property rights that complement its patent portfolio for its serotonin platform, including NUPLAZID. The Company capitalized the $8.0 million payment as an intangible asset and is amortizing the asset on a straight-line basis over the estimated useful life of the licensed patents through the second half of 2021. The Company recorded amortization expense related to its intangible asset of $369,000 for the three months ended March 31, 2017. As of March 31, 2017, estimated future amortization expense related to the Company’s intangible asset was $1.1 million for the remainder of 2017, $1.5 million for each of 2018, 2019, and 2020, and $1.0 million for 2021. Royalties incurred in connection with the Company’s license agreement with the Ipsen Group, as disclosed in Note 9, are expensed to license fees and royalties as revenue from product sales is recognized. Revenue Recognition Product Sales, Net The Company’s net product sales consist of U.S. sales of NUPLAZID and are recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title to the product and associated risk of loss has passed to the customer, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. NUPLAZID was approved by the FDA on April 29, 2016 and the Company commenced shipments of NUPLAZID to specialty pharmacies (“SPs”) and specialty distributors (“SDs”) in late May 2016. Through March 31, 2017, the Company has determined it does not have the necessary volume of activity to reasonably estimate its allowances for rebates and chargebacks at the time title and risk of loss transfers to the SP or SD. Accordingly, the price is not considered fixed or determinable at that time. Therefore, the Company recognizes revenue using the “sell-through” revenue recognition model. Under the sell-through approach, revenue is recognized when the SP dispenses product to a patient based on the fulfillment of a prescription or the SD sells product to a government facility, long-term care pharmacy or in-patient hospital pharmacy. As of March 31, 2017, the Company had a deferred revenue balance of $4.1 million, net of distribution fees, related to NUPLAZID product sales not yet sold through by the SPs and SDs. Product shipping and handling costs are included in cost of product sales. The Company recognizes revenue from product sales net of the following allowances and reflects each of these as either a reduction to the related accounts receivable or as an accrued liability, depending on how the amount is settled: Distribution Fees: Distribution fees include distribution fees, service fees paid to the SPs and SDs based on a contractually fixed percentage of the wholesale acquisition cost (“WAC”), fees for data, and prompt payment discounts. Distribution fees are recorded as an offset to revenue based on contractual terms at the time revenue from the sale is recognized. Rebates: Rebates include mandated discounts under the Medicaid Drug Rebate Program and the Medicare Part D prescription drug benefit. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements with, or statutory requirements pertaining to, Medicaid and Medicare benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company’s expected utilization of rebates is based on data received from the SPs and SDs. Chargebacks: Chargebacks are discounts that relate to contracts with government and other entities purchasing from the SDs at a discounted price. The SDs charge back to the Company the difference between the price initially paid by the SDs and the discounted price paid to the SDs by these entities. The allowance for chargebacks is based on known SD sales to contracted entities. Co-Payment Assistance: The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. Co-payment assistance is recorded at the time revenue from the sale is recognized based on actual program participation. Product Returns: Consistent with industry practice, the Company offers the SPs and SDs limited product return rights for damages, shipment errors, and expiring product, provided it is within a specified period around the product expiration date as set forth in the applicable individual distribution agreement. The Company does not allow product returns for product that has been dispensed to a patient. As the Company receives inventory reports from the SPs and SDs and has the ability to control the amount of product that is sold to the SPs and SDs, it is able to make a reasonable estimate of future potential product returns based on this on-hand channel inventory data and sell-through data obtained from the SPs and SDs. In arriving at its estimate, the Company also considers historical product returns, the underlying product demand, and industry data specific to the specialty pharmaceutical distribution industry.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	3. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, employee stock purchase plan rights, and warrants are considered to be common stock equivalents but are not included in the calculations of diluted net loss per share for the periods presented as their effect would be anti-dilutive. The Company incurred net losses for all periods presented and there were no reconciling items for potentially dilutive securities. More specifically, at March 31, 2017 and 2016, stock options, employee stock purchase plan rights, and warrants totaling approximately 16,832,000 shares and 14,507,000 shares, respectively, were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	4. Stock-Based Compensation The following table summarizes the total stock-based compensation expense included in the Company’s statements of operations for the periods presented (in thousands): Three Months Ended March 31, 2017 2016 Cost of product sales $ 880 $ — Research and development 5,301 4,396 Selling, general and administrative 9,390 7,559 $ 15,571 $ 11,955

Balance sheet Details

Balance sheet Details	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Balance Sheet Details	5. Balance Sheet Details Inventory consisted of the following (in thousands): March 31, 2017 December 31, 2016 Finished goods $ 2,061 $ 2,355 Raw material 1,820 1,820 $ 3,881 $ 4,175 Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued consulting and professional fees $ 13,582 $ 9,488 Accrued compensation and benefits 11,509 14,382 Accrued research and development services 7,570 8,551 Other 6,306 3,608 $ 38,967 $ 36,029

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2017
Investments Debt And Equity Securities [Abstract]
Investment Securities	6. Investment Securities Investment securities, all classified as available-for-sale, consisted of the following (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes $ 43,353 $ — $ (19 ) $ 43,334 Government sponsored enterprise securities 37,286 — (12 ) 37,274 Corporate debt securities 62,153 — (50 ) 62,103 Commercial paper 169,225 162 — 169,387 $ 312,017 $ 162 $ (81 ) $ 312,098 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes $ 82,484 $ 6 $ (3 ) $ 82,487 Government sponsored enterprise securities 73,789 1 (5 ) 73,785 Corporate debt securities 79,190 — (72 ) 79,118 Commercial paper 129,861 165 — 130,026 $ 365,324 $ 172 $ (80 ) $ 365,416 At each reporting date, the Company performs an evaluation of impairment to determine if any unrealized losses are other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, and the Company’s intent and ability to hold the investment until recovery of its amortized cost basis. The Company intends, and has the ability, to hold its investments in unrealized loss positions until their amortized cost basis has been recovered. Based on its evaluation, the Company determined that its unrealized losses were not other-than-temporary at March 31, 2017 and December 31, 2016. As of March 31, 2017 and December 31, 2016, all of the Company’s available-for-sale investment securities had contractual maturity dates of less than one year.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements The Company’s investments include cash equivalents and available-for-sale investment securities consisting of a money market fund, U.S. Treasury notes, and high quality, marketable debt instruments of corporations and government sponsored enterprises in accordance with the Company’s investment policy. The Company’s investment policy defines allowable investments and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. All investment securities have a credit rating of at least A3/A- or better, or P-1/A-1 or better, as determined by Moody’s Investors Service or Standard & Poor’s. The Company’s cash equivalents and available-for-sale investment securities are classified within the fair value hierarchy as defined by authoritative guidance. The Company’s investment securities classified as Level 1 are valued using quoted market prices. The Company obtains the fair value of its Level 2 financial instruments from third party pricing services. The pricing services utilize industry standard valuation models whereby all significant inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, or other market-related data, are observable. The Company validates the prices provided by the third-party pricing services by reviewing their pricing methods and matrices, and obtaining market values from other pricing sources. After completing the validation procedures, the Company did not adjust or override any fair value measurements provided by these pricing services as of March 31, 2017 and December 31, 2016. The Company does not hold any securities classified as Level 3, which are securities valued using unobservable inputs. The Company has not transferred any investment securities between the level classifications. The recurring fair value measurements of the Company’s cash equivalents and available-for-sale investment securities at March 31, 2017 and December 31, 2016 consisted of the following (in thousands): Fair Value Measurements at Reporting Date Using March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market fund $ 109,220 $ 109,220 $ — $ — U.S. Treasury notes 47,333 47,333 — — Government sponsored enterprise securities 74,531 — 74,531 — Corporate debt securities 64,603 — 64,603 — Commercial paper 169,387 — 169,387 — $ 465,074 $ 156,553 $ 308,521 $ — Fair Value Measurements at Reporting Date Using December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market fund $ 129,292 $ 129,292 $ — $ — U.S. Treasury notes 82,487 82,487 — — Government sponsored enterprise securities 88,773 — 88,773 — Corporate debt securities 82,857 — 82,857 — Commercial paper 140,024 — 140,024 — $ 523,433 $ 211,779 $ 311,654 $ —

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Equity	8. Stockholders’ Equity Public Offerings In August 2016, the Company raised net proceeds of approximately $215.9 million from the sale of 6,969,696 shares of its common stock in a follow-on public offering, including 909,090 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares. In January 2016, the Company raised net proceeds of approximately $281.6 million from the sale of 10,344,827 shares of its common stock in a follow-on public offering. In connection with the January 2016 offering, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with 667, L.P., Baker Brothers Life Sciences, L.P. and 14159, L.P. (the “Baker Entities”), all of which are existing stockholders of the Company and are affiliated with two of its directors, Julian C. Baker and Dr. Stephen R. Biggar. Under the Registration Rights Agreement, the Company agreed that, if the Baker Entities demand that the Company register their shares of its common stock, par value $0.0001 per share, for resale under the Securities Act of 1933, as amended (the “Securities Act”), the Company would be obligated to effect such registration. The Company’s registration obligations under the Registration Rights Agreement cover all shares of its common stock then held or later acquired by the Baker Entities (including approximately $75.0 million and $43.0 million of shares that the Baker Entities purchased at the public offering price in the January 2016 and August 2016 offerings, respectively), will continue in effect for up to 10 years, and include the Company’s obligation to facilitate certain underwritten public offerings of its common stock by the Baker Entities in the future. The Company has agreed to bear all expenses incurred by it in effecting any registration pursuant to the Registration Rights Agreement as well as the legal expenses of the Baker Entities of up to $50,000 per underwritten public offering effected pursuant to the Registration Rights Agreement. On April 1, 2016, pursuant to the Registration Rights Agreement, the Company filed a registration statement covering all shares owned by the Baker Entities as of March 31, 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Royalty Payments Pursuant to the terms of its 2006 license agreement with the Ipsen Group, the Company is required to make royalty payments of two percent of net sales of NUPLAZID. Corporate Credit Card Program In connection with the Company’s credit card program, the Company established a letter of credit in 2016 for $2.0 million, which has automatic annual extensions and is fully secured by restricted cash. Legal Proceedings In March 2015, following the Company’s announcement of the update to the timing of its planned NDA submission to the FDA for NUPLAZID for the treatment of PD Psychosis and the subsequent decline of the price of its common stock, two putative securities class action complaints (captioned Rihn v. ACADIA Pharmaceuticals Inc., Case No. 15-cv-0575-BTM-DHB, and Wright v. ACADIA Pharmaceuticals Inc., Case No. 15-cv-0593- BTM-DHB) were filed in the U.S. District Court for the Southern District of California (the “Court”) against the Company and certain of its current and former officers. The complaints generally alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making materially false and misleading statements regarding the timing of the Company’s planned NDA submission to the FDA for NUPLAZID, thereby artificially inflating the price of its common stock. The complaints sought unspecified monetary damages and other relief. On April 10 and June 1, 2015, the Court entered orders deferring the defendants’ response to the Rihn and Wright complaints until after the Court appointed a lead plaintiff and assigned lead counsel. On May 12, 2015, several putative stockholders filed separate motions to consolidate the two actions and be appointed lead plaintiff. On September 8, 2015, the Court issued an order consolidating the two actions, appointing lead plaintiff, and assigning lead counsel. On November 16, 2015, lead plaintiff filed a consolidated complaint with the Court which, like the prior complaints, accuses the defendants of making materially false and misleading statements regarding the anticipated timing of the Company’s planned NDA submission to the FDA for NUPLAZID. On January 15, 2016, the defendants filed a motion to dismiss the consolidated complaint. On September 19, 2016, the Court issued an order denying the motion to dismiss the consolidated complaint. On March 13, 2017, the parties signed a Stipulation of Settlement setting forth the terms of the proposed settlement, which is subject to Court approval. A hearing on lead plaintiffs’ motion for preliminary approval of the settlement is scheduled for May 26, 2017.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Recent Accounting Pronouncements	10. Recent Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows: Restricted Cash In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Basis of Presentation and Significant Accounting Policies – Revenue Recognition

Basis of Presentation and Sig17

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of ACADIA Pharmaceuticals Inc. should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission (the “SEC”). The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.
Accounts Receivable	Accounts Receivable Accounts receivable are recorded net of customer allowances for distribution fees, prompt payment discounts, chargebacks, and doubtful accounts. Allowances for distribution fees, prompt payment discounts and chargebacks are based on contractual terms. The Company estimates the allowance for doubtful accounts based on existing contractual payment terms, actual payment patterns of its customers and individual customer circumstances. At March 31, 2017, the Company determined that an allowance for doubtful accounts was not required. No accounts were written off during the periods presented.
License Fees and Royalties	License Fees and Royalties The Company expenses amounts paid to acquire licenses associated with products under development when the ultimate recoverability of the amounts paid is uncertain and the technology has no alternative future use when acquired. Acquisitions of technology licenses are charged to expense or capitalized based upon management’s assessment regarding the ultimate recoverability of the amounts paid and the potential for alternative future use. The Company has determined that technological feasibility for its product candidates is reached when the requisite regulatory approvals are obtained to make the product available for sale. In connection with the FDA approval of NUPLAZID in April 2016, the Company made a one-time milestone payment of $8.0 million pursuant to its 2006 license agreement with the Ipsen Group in which the Company licensed certain intellectual property rights that complement its patent portfolio for its serotonin platform, including NUPLAZID. The Company capitalized the $8.0 million payment as an intangible asset and is amortizing the asset on a straight-line basis over the estimated useful life of the licensed patents through the second half of 2021. The Company recorded amortization expense related to its intangible asset of $369,000 for the three months ended March 31, 2017. As of March 31, 2017, estimated future amortization expense related to the Company’s intangible asset was $1.1 million for the remainder of 2017, $1.5 million for each of 2018, 2019, and 2020, and $1.0 million for 2021. Royalties incurred in connection with the Company’s license agreement with the Ipsen Group, as disclosed in Note 9, are expensed to license fees and royalties as revenue from product sales is recognized.
Revenue Recognition	Revenue Recognition Product Sales, Net The Company’s net product sales consist of U.S. sales of NUPLAZID and are recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title to the product and associated risk of loss has passed to the customer, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. NUPLAZID was approved by the FDA on April 29, 2016 and the Company commenced shipments of NUPLAZID to specialty pharmacies (“SPs”) and specialty distributors (“SDs”) in late May 2016. Through March 31, 2017, the Company has determined it does not have the necessary volume of activity to reasonably estimate its allowances for rebates and chargebacks at the time title and risk of loss transfers to the SP or SD. Accordingly, the price is not considered fixed or determinable at that time. Therefore, the Company recognizes revenue using the “sell-through” revenue recognition model. Under the sell-through approach, revenue is recognized when the SP dispenses product to a patient based on the fulfillment of a prescription or the SD sells product to a government facility, long-term care pharmacy or in-patient hospital pharmacy. As of March 31, 2017, the Company had a deferred revenue balance of $4.1 million, net of distribution fees, related to NUPLAZID product sales not yet sold through by the SPs and SDs. Product shipping and handling costs are included in cost of product sales. The Company recognizes revenue from product sales net of the following allowances and reflects each of these as either a reduction to the related accounts receivable or as an accrued liability, depending on how the amount is settled: Distribution Fees: Distribution fees include distribution fees, service fees paid to the SPs and SDs based on a contractually fixed percentage of the wholesale acquisition cost (“WAC”), fees for data, and prompt payment discounts. Distribution fees are recorded as an offset to revenue based on contractual terms at the time revenue from the sale is recognized. Rebates: Rebates include mandated discounts under the Medicaid Drug Rebate Program and the Medicare Part D prescription drug benefit. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements with, or statutory requirements pertaining to, Medicaid and Medicare benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company’s expected utilization of rebates is based on data received from the SPs and SDs. Chargebacks: Chargebacks are discounts that relate to contracts with government and other entities purchasing from the SDs at a discounted price. The SDs charge back to the Company the difference between the price initially paid by the SDs and the discounted price paid to the SDs by these entities. The allowance for chargebacks is based on known SD sales to contracted entities. Co-Payment Assistance: The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. Co-payment assistance is recorded at the time revenue from the sale is recognized based on actual program participation. Product Returns: Consistent with industry practice, the Company offers the SPs and SDs limited product return rights for damages, shipment errors, and expiring product, provided it is within a specified period around the product expiration date as set forth in the applicable individual distribution agreement. The Company does not allow product returns for product that has been dispensed to a patient. As the Company receives inventory reports from the SPs and SDs and has the ability to control the amount of product that is sold to the SPs and SDs, it is able to make a reasonable estimate of future potential product returns based on this on-hand channel inventory data and sell-through data obtained from the SPs and SDs. In arriving at its estimate, the Company also considers historical product returns, the underlying product demand, and industry data specific to the specialty pharmaceutical distribution industry.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-based Compensation Expense Included in Statements of Operations	The following table summarizes the total stock-based compensation expense included in the Company’s statements of operations for the periods presented (in thousands): Three Months Ended March 31, 2017 2016 Cost of product sales $ 880 $ — Research and development 5,301 4,396 Selling, general and administrative 9,390 7,559 $ 15,571 $ 11,955

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Inventory	Inventory consisted of the following (in thousands): March 31, 2017 December 31, 2016 Finished goods $ 2,061 $ 2,355 Raw material 1,820 1,820 $ 3,881 $ 4,175
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued consulting and professional fees $ 13,582 $ 9,488 Accrued compensation and benefits 11,509 14,382 Accrued research and development services 7,570 8,551 Other 6,306 3,608 $ 38,967 $ 36,029

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Investments Debt And Equity Securities [Abstract]
Schedule of Investment Securities Classified as Available-for-Sale	Investment securities, all classified as available-for-sale, consisted of the following (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes $ 43,353 $ — $ (19 ) $ 43,334 Government sponsored enterprise securities 37,286 — (12 ) 37,274 Corporate debt securities 62,153 — (50 ) 62,103 Commercial paper 169,225 162 — 169,387 $ 312,017 $ 162 $ (81 ) $ 312,098 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value U.S. Treasury notes $ 82,484 $ 6 $ (3 ) $ 82,487 Government sponsored enterprise securities 73,789 1 (5 ) 73,785 Corporate debt securities 79,190 — (72 ) 79,118 Commercial paper 129,861 165 — 130,026 $ 365,324 $ 172 $ (80 ) $ 365,416

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements of Cash Equivalents and Available-For-Sale Investment Securities	The recurring fair value measurements of the Company’s cash equivalents and available-for-sale investment securities at March 31, 2017 and December 31, 2016 consisted of the following (in thousands): Fair Value Measurements at Reporting Date Using March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market fund $ 109,220 $ 109,220 $ — $ — U.S. Treasury notes 47,333 47,333 — — Government sponsored enterprise securities 74,531 — 74,531 — Corporate debt securities 64,603 — 64,603 — Commercial paper 169,387 — 169,387 — $ 465,074 $ 156,553 $ 308,521 $ — Fair Value Measurements at Reporting Date Using December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market fund $ 129,292 $ 129,292 $ — $ — U.S. Treasury notes 82,487 82,487 — — Government sponsored enterprise securities 88,773 — 88,773 — Corporate debt securities 82,857 — 82,857 — Commercial paper 140,024 — 140,024 — $ 523,433 $ 211,779 $ 311,654 $ —

Basis of Presentation and Sig22

Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounting Policies [Abstract]
Accounts receivable written off		$ 0	$ 0
One-time contingent regulatory milestone payment pursuant to agreement with Ipsen Group	$ 8,000,000
Finite-lived intangible assets, net	$ 8,000,000
Amortization of intangible assets		369,000
Estimated future amortization expense, remainder of 2017		1,100,000
Estimated future amortization expense, 2018		1,500,000
Estimated future amortization expense, 2019		1,500,000
Estimated future amortization expense, 2020		1,500,000
Estimated future amortization expense, 2021		1,000,000
Deferred revenue, net of distribution fees		$ 4,132,000		$ 2,644,000

Net Loss Per Share - Additional

Net Loss Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Antidilutive securities to purchase common stock	16,832,000	14,507,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-based Compensation Expense Included in Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 15,571	$ 11,955
Cost of product sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	880
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	5,301	4,396
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 9,390	$ 7,559

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished goods	$ 2,061	$ 2,355
Raw material	1,820	1,820
Inventory	$ 3,881	$ 4,175

Balance Sheet Details - Sched26

Balance Sheet Details - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables And Accruals [Abstract]
Accrued consulting and professional fees	$ 13,582	$ 9,488
Accrued compensation and benefits	11,509	14,382
Accrued research and development services	7,570	8,551
Other	6,306	3,608
Accrued liabilities	$ 38,967	$ 36,029

Investment Securities - Schedul

Investment Securities - Schedule of Investment Securities Classified as Available-for-Sale (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 312,017	$ 365,324
Unrealized Gains	162	172
Unrealized Losses	(81)	(80)
Estimated Fair Value	312,098	365,416
U.S. Treasury notes
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	43,353	82,484
Unrealized Gains		6
Unrealized Losses	(19)	(3)
Estimated Fair Value	43,334	82,487
Government sponsored enterprise securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	37,286	73,789
Unrealized Gains		1
Unrealized Losses	(12)	(5)
Estimated Fair Value	37,274	73,785
Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	62,153	79,190
Unrealized Losses	(50)	(72)
Estimated Fair Value	62,103	79,118
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	169,225	129,861
Unrealized Gains	162	165
Estimated Fair Value	$ 169,387	$ 130,026

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurements of Cash Equivalents and Available-For-Sale Investment Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	$ 465,074	$ 523,433
Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	109,220	129,292
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	156,553	211,779
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market fund
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	109,220	129,292
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	308,521	311,654
U.S. Treasury notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	47,333	82,487
U.S. Treasury notes | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	47,333	82,487
Government sponsored enterprise securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	74,531	88,773
Government sponsored enterprise securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	74,531	88,773
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	64,603	82,857
Corporate debt securities | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	64,603	82,857
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	169,387	140,024
Commercial paper | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	$ 169,387	$ 140,024

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended
	Aug. 31, 2016	Jan. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Class Of Stock [Line Items]
Net proceeds from sale of common stock	$ 215,900,000	$ 281,600,000	$ 11,490,000	$ 282,991,000
Share of common stock issued	6,969,696	10,344,827
Common stock, par value			$ 0.0001		$ 0.0001
Value of shares purchased by Baker Entities in public offerings			$ 12,000		$ 12,000
Option To Purchase Additional Shares
Class Of Stock [Line Items]
Share of common stock issued	909,090
Registration Rights Agreement
Class Of Stock [Line Items]
Common stock, par value		$ 0.0001
Expiration period		10 years
Maximum amount of expense agreed to bear under the agreement		$ 50,000
Registration Rights Agreement | Baker Brothers Life Sciences L.P.
Class Of Stock [Line Items]
Value of shares purchased by Baker Entities in public offerings	$ 43,000,000	$ 75,000,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Other Commitments [Line Items]
Restricted cash	$ 2,475,000	$ 2,375,000
Corporate Credit Card Program | Letter of Credit
Other Commitments [Line Items]
Restricted cash		$ 2,000,000
Maximum
Other Commitments [Line Items]
Percentage of royalty payments obligation on net product sales	2.00%

Recent Accounting Pronounceme31

Recent Accounting Pronouncements - Additional Information (Detail) - ASU 2016-09 $ in Millions	Mar. 31, 2017USD ($)
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Adoption of new accounting pronouncement deferred tax assets increased to record unrecognized excess tax benefits	$ 36.8
Increase to additional paid-in capital with reduction to retained earnings	0.3
Deferred tax assets increase to record excess tax benefit	$ 0.1