ACADIA Pharmaceuticals (Nasdaq: ACAD) is a biopharmaceutical company utilizing innovative technology to fuel drug discovery and clinical development of novel treatments for central nervous system disorders. We currently have five mid-to-late stage clinical programs as well as a portfolio of preclinical and discovery assets directed at large unmet medical needs and major commercial markets. In our most advanced program, we are conducting Phase III trials with pimavanserin for the treatment of Parkinson's disease psychosis. We also have three Phase II-stage clinical programs, including pimavanserin as a co-therapy for schizophrenia, pimavanserin for the treatment of sleep maintenance insomnia, and ACP-104 for the treatment of schizophrenia. We have retained worldwide commercialization rights for all four of these proprietary programs. In addition, we have a neuropathic pain program in Phase II development in collaboration with Allergan
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ACADIA will focus on developing a portfolio of its four most advanced product candidates, consisting of two internal compounds as well as two partnered compounds that are funded by Allergan. In connection with the restructuring, ACADIA plans to reduce its total workforce by about 50 percent to 65 employees. This restructuring will impact employees at both its San Diego and Malmo sites.

"Following a thorough strategic review of our portfolio and business, we will focus resources on our most advanced product candidates, with the primary emphasis on our Phase III program with pimavanserin, and streamline our operations," said Uli Hacksell, Ph.D., Chief Executive Officer of ACADIA. "We regret that this restructuring will result in a substantial reduction in our workforce involving many dedicated and loyal employees. However, through these actions we believe we have positioned ACADIA to achieve key milestones in our advanced clinical programs while at the same time extending our cash runway into the first half of 2010. We also have added further strength and flexibility through a new Committed Equity Financing Facility with Kingsbridge announced separately today."

ACADIA's top priority is to advance its Phase III program with pimavanserin for Parkinson's disease psychosis, or PDP, toward registration. A key objective in this program is the successful and timely execution of the first Phase III pivotal trial. This trial remains on track and ACADIA anticipates reporting top-line results during the third quarter of 2009. ACADIA is also continuing to enroll patients in its second Phase III pivotal trial for PDP. In addition, ACADIA will continue to evaluate and position pimavanserin for potential broader market opportunities, including neurological and neuropsychiatric indications that are underserved by existing antipsychotics.

Through its collaborations with Allergan, ACADIA is also advancing a Phase II program in chronic pain and a Phase I program in glaucoma. In addition to its lead Phase III program with pimavanserin and the two collaborative clinical programs, ACADIA intends to complete IND-enabling studies to advance a fourth product candidate, ACP-106, into the clinic in 2009.

"While we have significantly reduced our spending on earlier-stage programs, we have maintained core discovery capabilities to support our advanced clinical programs and collaborations and to provide us with opportunities to introduce additional clinical programs in the future," added Dr. Hacksell.

ACADIA estimates that it will record charges of between approximately $2.0 to $2.5 million during the third quarter of 2008 in connection with the restructuring. ACADIA anticipates that its internal operating expenses will be reduced significantly following the restructuring and that cash used in its operating activities during 2009 will be below its 2008 level.

Second Quarter Financial Results

ACADIA reported a net loss of $18.3 million, or $0.49 per common share, for the second quarter of 2008 compared to a net loss of $10.8 million, or $0.29 per common share, for the second quarter of 2007. For the six months ended June 30, 2008, ACADIA reported a net loss of $34.7 million, or $0.94 per common share, compared to a net loss of $23.3 million, or $0.70 per common share, for the comparable period of 2007.

Revenues totaled $177,000 for the second quarter of 2008 compared to $2.1 million for the second quarter of 2007. The decrease in revenues was primarily due to completion of the terms of ACADIA's agreements with Sepracor Inc. and The Stanley Medical Research Institute, as well as lower revenues from its collaborations with Allergan.

Research and development expenses totaled $16.0 million for the second quarter of 2008, including $380,000 in stock-based compensation, compared to $11.5 million for the second quarter of 2007, including $705,000 in stock-based compensation. The increase in research and development expenses was primarily due to increased costs associated with trials in ACADIA's advanced clinical programs, including $4.8 million in increased external costs, which totaled $8.9 million for the second quarter of 2008.

General and administrative expenses totaled $3.2 million for the second quarter of 2008, including $431,000 in stock-based compensation, and were comparable to expenses for the second quarter of 2007.

At June 30, 2008, ACADIA's cash, cash equivalents, and investment securities totaled $89.6 million compared to $126.9 million at December 31, 2007. Following its restructuring, ACADIA anticipates that its existing cash resources will be sufficient to fund its activities into the first half of 2010. The new Committed Equity Financing Facility provides ACADIA with further financial strength and flexibility through access to additional capital during the next three years.