Good day, ladies and gentlemen, and welcome to the AcadiaPharmaceuticals Third Quarter 2007 Financial Results Conference Call. My nameis Melanie, and I'll be your coordinator on today. At this time, allparticipants are in a listen-only mode. We will be facilitating aquestion-and-answer session toward the end of today's call. (OperatorInstructions). I would now like to turn the presentation over to Ms. Lisa Barthelemy, Director of Investor Relations at AcadiaPharmaceutical, who will review the Company's forward-looking statements.Please proceed.

Good afternoon, and welcome to the Acadia Pharmaceuticalthird quarter 2007 financial results conference call. This call is beingrecorded, and an archived copy will be available on our website atwww.acadia-pharm.com through November 19. Before we proceed, I would like to first remind you thatduring our call today we will be making a number of forward-looking statements,including statements regarding our anticipated financial results and ourresearch and development programs. These forward-looking statements are basedon current information and expectations that are inherently subject to changeand involve a number of risks and uncertainties that may cause actual resultsto differ materially from those contained in the forward-looking statements.These factors and other risks associated with our business can be found in ourfilings made with the SEC, including our annual report on Form 10-K for theyear ended December 31, 2006, and subsequent filings. You are cautioned not toplace undue reliance on these forward-looking statements, which are made onlyas of today's date. Acadia disclaims any obligationto update these forward-looking statements. It is now my pleasure to turn the call over I'll to Dr. UliHacksell, our Chief Executive Officer.

Thank you, Lisa, and let me take this opportunity to thankall of you for joining us on today's conference call. Also joining from the Acadia today are Dr. Roger Mills, our Executive VicePresident of Developments, and Thomas Aasen , our Chief Financial Officer. I will begin the call by covering some of our recenthighlights. I will then ask Tom to review our financial results for the thirdquarter, and following these remarks we will briefly review our clinicalprograms. We will then open the floor to your questions. Before we begin, and on behalf of all of us at Acadia, Iwould like to thank the financial community for their support and concern forour employees during the recent fire in San Diego. While many of the employees were among thelarge numbers temporarily displaced, we are fortunate to be able to say thatour physiologist and the homes of our employees were untouched by the fires.Again, your messages and thoughts very greatly appreciated. Now, even the third quarter, we continue to make solidprogress with the ongoing clinical trials in our most advanced proprietaryclinical programs. This includes the first pivot trial in our Phase III programwith Pimavanserin, for the treatment of Parkinson's Diseasepsychosis, and our Phase IIb trial withACP-104, for the treatment of Schizophrenia. We started both of these key trials during the summer, andour development teams had worked diligently to get the initial clinical trialsfully up and running, and advanced patient enrollments. Meanwhile, following completion of the full analysis of ourPhase II Schizophrenia co-therapy trial with Pimavanserinearlier this summer, I’m excited to report that we are preparing to presentthis data in collaboration with Dr. Herbert Meltzer at the ACNP annualmeeting to be held in Boca Raton, Florida from December 9th-13th. Given the prominence of this meeting in the neuropsychiatriccommunity, we believe that this is the ideal venture for the presentation ofthe data, highlighting the full analysis of this Phase II trial. We recognize that the attendance at the ACNP meeting isgenerally limited to ACNP members and designated sponsors. Therefore, we havealso arranged to host an analyst and investor meeting in New York City on Friday, December 14th,immediately following the ACNP meeting, in order to provide the investmentcommunity with the opportunity to attend presentations on the full analysisfrom this exciting Phase II trial, and have access to leading clinicians in thearea of schizophrenia. In addition to the progress we have made in our advancedclinical programs, our strong balance sheet that provides us with a solidfoundation to advance our clinical pipeline and execute on our growth strategy.We remain dedicated to providing meaningful improvements to patients who sufferfrom neuropsychiatric, and other CNS, disorders. Before we review our clinical programs and our upcomingmilestones in more detail, let me turn the call over to Tom to discuss ourrecent financial results.

Thank you, Uli. I will provide you with a brief overview ofour financial results for the third quarter, was reported in our press releaseand Form 10-Q issued earlier today. Once again, I am pleased to report that ourfinancial results for the quarter were in line with our expectations,reflecting the planned investment in our advanced proprietary clinical programs. We reported a net loss of $16.0 million, or $0.43 per commonshare, for the third quarter of 2007, compared to a loss of $11.3 million, or$0.38 per common share, for the third quarter of 2006. We continue to maintaina strong cash position, closing the third quarter with the total of $141million in cash and investment securities. Let's briefly look at some of the components of our thirdquarter results. Our revenues totaled $2.0 million for the third quarter of2007, compared to $1.9 million for the third quarter of 2006, and were onceagain comprised of revenues from our collaborations with Sepracor and Allergan,as well as agreements with other parties. Research and Development expenses totaled $16.9 million forthe third quarter of 2007, including $805,000 in stock-based compensation,compared to $15.5 million for the third quarter of 2006, including $550,000 instock-based compensation. The increase in R&D expenses was primarilyattributable to increased costs associated with the ongoing clinical trials inour advanced proprietary clinical programs, including the Phase IIb trial inour program with ACP-104, and the pivotal Phase III trial in our program with Pimavanserinfor Parkinson's disease psychosis. External service costs increased to $9.7 million for thethird quarter of 2007, from $9.0 million for the comparable of 2006. General and administrative expenses totaled $2.9 million forthe third quarter, and were comparable to the third quarter of 2006. Finally, let me update you on our cash outlook. We believethat with our current balance sheet, we are well positioned to continue toadvance our proprietary clinical pipeline and execute on our business strategy. We continue to expect that our cash and investmentsecurities will be greater than a $120 million at December 31, 2007, and thatour existing cash resources including expected payments from collaborators willbe sufficient to fund our operations through 2009. I will now turn the call back over to Uli.

Thank you, Tom. Let me now review our programs in moredetail. Acadia's pipeline includes five mid-to late-stage clinical programs. In our most advanced program, we are in PhaseIII development with Pimavanserin for the treatment of Parkinson's Diseasepsychosis. Earlier this year, we reported positive top line resultsfrom the Phase II trial in our program with Pimavanserin, as a co-therapy for Schizophrenia. We also have two proprietary Phase II stage clinicalprograms, which are ACP-104 for the treatment of Schizophrenia and Pimavanserin,for the treatment of sleep maintenance insomnia. We have retained worldwide commercialization rights for allfour of these proprietary programs. In addition, we have a neuropathic painprogram in Phase II clinical trials in collaboration with Allergan. My remarks today will mostly focus on our two advancedschizophrenia programs and our Phase III Parkinson's disease psychosis program Let me start by discussing our program with Pimavanserin asa co-therapy for schizophrenia. Despite the commercial success of [listing] antipsychotics,which exceed $16 billion in worldwide sales, current drugs that are used totreat schizophrenia and related disorders have substantial limitations,including severe side effects and inadequate efficacy. We believe that good co-therapy with Pimavanserin, combinedwith a submaximal dose of atypical antipsychotics, can significantly improvethe way schizophrenia and related disorders are treated today. As mentioned earlier, we look forward to presenting datafrom our Phase II schizophrenia co-therapy trial with Pimavanserin incollaboration with Dr. Meltzer at the upcoming 46th Annual Meeting of TheAmerican Society of Neuropsychopharmacology to be held in Boca Raton, Floridain December. Dr. Meltzer's presentation will highlight findings from thefull analysis of our Phase II co-therapy trial. The full analysis confirmed therobustness of the top line results reported in March. This demonstratedimportant advantages of co-therapy with Pimavanserin when combined with asubmaximal dose of risperidone. These advantages included enhanced efficacy, a faster onsetof antipsychotic action and an improved side effect profile.…

(Operator Instructions). And our first question comes fromthe line of Alan Carr with Needham.Go ahead. Alan Carr - Needham & Company : Hi good afternoon everyone.

Hi there. Alan Carr - Needham & Company : Hi, yeah, sounds like you’re making some progress with thePimavanserin in PDP and that you’ve that enrollment is, I guess little bit moreclear here in terms of time lines. I was wondering if you can give any moredetail on when you think you might get the second one started? And has yourview changed, as whether or not this one is going to be exactly the same as thefirst or you are going to – are there going to be any differences between thetwo trials.

Roger, may be you can give a short-term answer to thatquestion.

Yeah, thanks Uli. So Alan, I think this will be the strategywas to position the two studies in a staggered manner, but obviously inparallel. So as we’ve been doing lot of work in getting the first study up andrunning, we’ve been doing the preparatory work for and that's well underway. Sowe will anticipate starting that study probably soon. Alan Carr - Needham & Company : In the first half '08 probably, or even by yearend, do youthink?

Actually starting, I won't give the exact time but it willbe a lot faster than the end of '08 I can assure you, its. Alan Carr - Needham & Company : At first half?

Probably soon. Alan Carr - Needham & Company : Okay. And I guess that we missed, but didn't ask aboutpartnering for Pimavanserin and can -- I am wondering if youcan characterize those discussions to any degree as to whether or not, are youfinding any hesitation for patterning this drug because its an agent as apposed to a standalone drug or are there particular financialterm that you are looking for?

Yes, so let me try to answer that question. First of all, aswe have indicated following the completion of the full analysis of our trial,we initiate this process to explore potential strategic alliances that reallycan help us to optimize the value of Pimavanserin. What we can say is that wehave been very pleased with the positive reaction on the Phase II data fromboth the medical and pharmaceutical communities. And what I can tell you isthat following the full analysis of the data from this trial, we are moreexcited than ever above the commercial potential for Pimavanserin and webelieve that this excitement is also evident in this captions with potentialpartners. Now, when it comes to the kind of deal that we really areaiming for, it’s clearly -- we are looking for something that can help us toreally complete the comprehensive registration program that will maximize thevalue of this opportunity on the market. And we believe that this drug has a --represents a great commercial opportunity I should also mention that, in general terms, our strategyis to try to retain rights to participate in the commercialization in areassuch as Parkinson's disease psychosis, in the U.S. And we certainly want to endup with the deal that has the right commercial aspects in it has stronginvolvement and incentives both for us and our potential partners. Alan Carr - Needham & Company : Do you sense any hesitation by your potential partners inletting you all participate?

As I said before, we don’t want to go into specific detailsof our process or these discussions. What I can say is again that we areexcited and we see excitement from our potential partners as well. Alan Carr - Needham & Company : Okay. Thanks very much

Thanks

Our next question comes from the line of Ajim Tamboli withLehman Brothers. Go ahead.

Good afternoon. On the pimavanserin presentation at the ACNPmeeting, following the data you've realized to-date, what incremental detailscan we expect to receive in December?

Roger, do you want to take your shot on that?

Yeah, thanks Uli. I think first thing is, I just want tostress is that when we did the top line data, those were very prettycomprehensive analysis that we done prior to that. So those – the messagingthat we've put out there to-date is being confirmed by the additional analysisthat we have done, a lot of it was just robust and striking. I think whatyou'll see is a broader aspect of some of the data behind the messaging that weput out to-date really reaffirming the key aspects of that the efficacy on thePANSS scale which is very clinically meaningful and was driven not by any oneelements of that, but across the Board. The accelerated response that we sawand the benefits in the side effect profiles with the weight gain,prolactinemia, there will be some data on the akathisia and weight gain. So Ithink you are going to see written essentially the background to the messagingthat we put out to-date.

So I would have to assume no surprises other than thesupported data we've seen the date including on the side effect profile?

Yeah, there are no surprises that we have that which is veryreassuring all our business analysis confirmed that the position that wereported early this year.

Okay, great. And then on the ACP-104 Phase IIb trial onschizophrenia, can you tell us how many patients have been dose to-date andwhat the weekly blood monitoring requirements are, and whether we have seenadditional cases of leukopenia and any suggestion of agranulocytosis?

Yeah again Roger, I think this is a question for you.

Okay, thanks, Uli. We are not giving specific information onthe numbers of patients that are enrolled in this study. Apart from saying thatwe are very pleased with the performance on the study and we are very pleasedwith the progress that we are making there. And I think as Uli mentionedearlier, we expect to report top line results in the third quarter of next yearof '08. In terms of the monitoring in the study, we're doing apretty standard monitoring which does include hematological data and that ispretty standard and we're moving along another, and as I said we are verypleased, we remain very pleased with the progress in the study.

Is that weekly or biweekly?

It's weekly.

Weekly, okay.

(inaudible) that we're following a very rigorous kind ofblood monitoring.

Right. Okay, great. And then finally, Uli, I guess, as yousee think about partnering given that we have had data for few moments now forPimavanserin, how do you weigh that versus completing a partnership versus Iguess taking the program forward here in terms of timelines?

Yes, Ajim, as I have said, many, many times, I thinkit's ideal to have a commercial partnerinvolved in the design of the complete Phase III program from a commercialpoint of view because if you want to make sure that you do the right start,it's from a commercial point of view in the area of schizophrenia. So clearly,we think that's a very interesting aspect of these discussions and that we're havingnow. We've not excluded them that we may do additionalschizophrenia start-ups I have said, but again, I think the ideal kind ofscenario is to think to have a partner helping us to complete the registrationstudies that will enable us to maximize the commercial opportunity aroundPimavanserin.

And you also may add to that we have the Parkinson's programalready ongoing, not only we continue to generate important clinical data, butwe also have the rest of the Phase III program which is appearing in parallelwith that clinical program designed obviously to provide a package registrationat the end.

Great. Thanks for taking the questions.

Good.

Our next question comes from the line of Joe Pantginis withCanaccord Adams. Go ahead.

Hi, guys, good afternoon. Thanks for taking the call.

Hi, Joe

Hey, just quick question on the Phase II data, the top linedata, you guys presented or made the statement that even though you couldn'tget into as much detail as you can in the upcoming final data thatsignificantly impacted the negative symptoms. I was just wondering, I know youcan't get into the specifics now, but can you give us why it's importantrelative to what other treatments have not been able to show in impactingnegative symptoms?

Do you want to answer that Roger?

You want to give the background first.

Yeah. Let me take a step back and look at schizophreniatherapy in general. So remember we have three symptom domains in schizophrenia.We have positive systems, that are the hallucinations and delusions, which arewell treated by almost antipsychotic agents. Then you have the negativesymptoms, which are poorly treated, or perhaps even worsen, by some of theantipsychotic drugs you see today. And the negative symptoms consist of socialwithdrawal etcetera and apathy in general. And then you have the third symptomdomain, which is the cognitive deficit induced by the disease and probablyworsened by all existing antipsychotic agents. So two of the untreated, or verypoorly treated areas, of schizophrenia symptoms are the negative symptoms andthe cognitive deficits And that why it's really interesting to look inparticular at improvements in negative symptoms like cognitive deficits with adrug like pimavanserin. Now, before I let Roger to answer your question I shouldalso mention that in the data that we presented at the neuroscience meetingjust recently, we showed that, while all the atypical antipsychotic drug, infact, worsen for example, cognition. Pimavanserin is able to reverse thateffect, that negative affect on cognation and we think that cognitive aspectsof Pimavanserin therapy may extend also in the negativesymptom domain. So that is essentially the back ground that we have from theclinical experience with atypical antipsychotic drugs and with pharmacologicalexperiments in the same area. Roger.

Thanks Uli. I think what we saw in thePhase II study are those positioned appropriately to begin with, this waslooking at the full PANSS scale in a particular population of acute schizophrenicpatients. If one wishes to look specifically the negative symptoms or moreprobably use a more stable population and perhaps some one would want to use amore specific scale such as the SANS scale, which is the negative side of theSAPS scale that we are using in Parkinson's. And you would specifically designa study to really highlight those aspects and this study wasn't specificallydesigned for that reason, however, within the overall aspect to PANSS clearlythe end side of the PANSS related to negative symptoms and is really set asspecific demands to look at them. What we saw in this study was a very nice robust affect, notonly on the positive symptomatology of the disease, but also, importantly, onthe negative symptoms and which is very encouraging for us. So we didn’t seeone particular element driving the results, it was across the spectrum of thedisease that one saw a benefit. But in terms of highlighting that in further development onewould probably wish to use a more specific scale and the different design ofthe study to bring those potential benefits to the full.

Okay great. Thanks a lot that was helpful.

Our next question comes from the line of David Amsellem withFriedman Billings Ramsey. Go ahead.

Hi, thanks for taking my questions. So just on Pimavanserinyou have right now $140 million in cash realized that you are looking for theright commercial partner to be in place, but in the interim do you envisionrunning any additional, say Phase IIb type studies, say with other atypicalantipsychotic or do you plan to move forward with any other indications interms of running any exploratory studies. I am just trying to get a sense ofwhat you plan to do in terms of clinical trials for Pimavanserin in the interimwhile you are trying to secure partnership?

Again, just to reiterate of what Rogers said before, we are moving forwardquite aggressively with Pimavanserin Phase III clinical studies for Parkinson'sdisease psychosis. We think what we do in that registration program willbenefit Pimavanserin development for other indications as well. So, we haven't indicated to them what kind of additionalstudies we may do in the future. We haven't said that we may not do anythingelse. But, again that's something that we are thinking about clearly.

I think it's also important that the study that we didprovide a really good proof concept result and therefore I think, as you areindicating, [one good look at] doing other specific drugs to combine with. ButI think, as Uli had mentioned earlier, it's important that as we embark onfurther studies that we do so with a view to the maximizing the value of thiscompound in the marketplace. And that's a very, one of the key elements of why we arelooking at partnership, so that we can specifically position further studies inorder to get the maximum value when the drug hits the marketplace.

And then a second question if I may on Pimavanserin, can yousay what portion of the sites in the Phase III study in PDP are U.S. versusex-U.S?

It is close to 50% a little more in the U.S. in the first study, but it'spretty close to sort of 50/50 overall.

Okay. Alright, thanks.

Our final question comes from the line of Patrick Moriartywith Fortis. Go ahead

Hi, good evening. Thanks for taking my questions. I have aquick follow-up on the ACNP data to be looked at. In terms of the efficacy youhave given the responder analysis using a 20% reduction. Are you going to lookat the magnitude of response in this presentation, in other words look at maybe 25% , 30% PANSS reduction at the various standpoints?

We not specifically stated what we are going to present atthat meeting. We have I think thought previously number of business check,obviously warm looks at the different aspects of what would be a responder, butI am not so certain that we have decided exactly what we are putting into thatpresentation yet.

Is it possible to comment on the robustness of responseside?

Only that we are comfortable the result we have reported isconfirmed as we said earlier. All the results are confirmed by the variousbusiness checks that we've done.

Okay, great. Thank you

Thanks.

Ladies and gentlemen, that does conclude ourquestion-and-answer session for today. Dr. Hacksell, please proceed to closingremark.

So thanks again to everyone for joining us on today's calland for your continued support. We look forward for the opportunity to updateyou in the future on our ongoing process. Thanks.

Thank you for your participation in today's conferencescall. This concludes the presentation. You may now disconnect. Have a good day.