Oct 6 (Reuters) - Acadia Pharmaceuticals Inc and its partner Biovail Corp decided to conduct a third late-stage trial for pimavanserin, their experimental drug for psychosis related to Parkinson's disease that failed in a late-stage trial last month, the companies said.
The companies have agreed to use the findings from the failed study along with the data from a second, ongoing late-stage study, to arrive at an enhanced study design that may be used in the third late-stage trial.
Acadia also plans to implement cost-saving measures during October to streamline operations and cut expenses, and said that its current cash, investment securities and collaboration payments will be sufficient to fund operations into the first half of 2011.
Acadia and Biovail will start planning for the new trial using a 40 milligram dose of pimavanserin, and Biovail will be responsible for the cost of the third trial.
The third study is expected to start in the first half of 2010.
The companies, which have a collaboration to develop pimavanserin in Alzheimers disease psychosis (ADP) and Parkinsons disease psychosis (PDP), also said that they plan to pursue adjunctive therapy with the drug for schizophrenia.
Acadia and Biovail currently plan to focus their efforts on the PDP and schizophrenia programs, but said were also moving forward with planning for an initial study in ADP.
Acadia shares closed at $1.65 Monday on Nasdaq, while Biovail shares closed at C$15.66 on the Toronto Stock Exchange.

(Reporting by Esha Dey in Bangalore; Editing by Aradhana Aravindan) Keywords: ACADIA/ (esha.dey@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: esha.dey.reuters.com@reuters.net)

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