Acorda Therapeutics Implements Corporate Restructuring to Align Cost Structure with Focus on Promising Late-Stage Programs
April 05 2017 - 6:00AM
Business Wire
- More than $21.0 million in expected
annualized cost savings from headcount reduction
- Company to provide revised 2017
financial guidance during Q1 quarterly update, including
additional, non-headcount-related, operating expense
reductions
Acorda Therapeutics, Inc. (Nasdaq: ACOR)
today announced a corporate restructuring to reduce its cost
structure and focus its resources on its two late-stage programs,
CVT-301 and tozadenant, as well as on maximizing patient access to
AMPYRA® (dalfampridine) Extended Release Tablets, 10 mg at least
through July 2018.
The adoption of this restructuring plan follows
the previously-announced decision by the United States District
Court for the District of Delaware invalidating certain patents
pertaining to AMPYRA. Under this ruling, Acorda expects to maintain
exclusivity to AMPYRA through July 2018. The Company will appeal
the decision.
As part of this restructuring, Acorda is
reducing headcount by approximately 20%. The majority of the
reduction in personnel is expected to be completed in April 2017.
As a result, the Company expects to realize estimated annualized
cost savings from the reduction in personnel of approximately $21.0
million beginning in the second quarter of 2017. Acorda estimates
that it will incur approximately $8.0 million of pre-tax charges
for severance and other costs related to the restructuring,
primarily during the second quarter.
As of December 31, 2016, the Company had cash
and cash equivalents of approximately $159 million and expects to
be cash flow positive for 2017. The Company has $345 million of
convertible senior notes due in 2021 with a conversion price of
$42.56. Acorda believes that the cost savings from the
restructuring and subsequent operating expense reductions will
enable it to fund operations through the key milestones for its
late-stage development programs, including the commercial launch of
CVT-301, pending approval from the U.S. Food and Drug
Administration (FDA), and Phase 3 data for tozadenant. The Company
plans to file a New Drug Application (NDA) for CVT-301 with the FDA
in the second quarter of 2017.
“The cost reductions resulting from this
restructuring will enable Acorda to continue to advance our two
valuable late-stage programs for Parkinson’s disease, CVT-301 and
tozadenant,” said Ron Cohen, M.D., Acorda's President and CEO.
“Over the last several years, we have strategically diversified our
portfolio, and we believe that CVT-301 and tozadenant can be a
platform for significant future growth. We believe that the steps
that we are taking will position Acorda to deliver long-term value
for our shareholders.”
Cohen continued, “The decision to reduce
headcount is extremely difficult, but is necessary to ensure that
Acorda can continue to bring important therapies to the market. We
are grateful for the dedication and hard work of all of Acorda’s
associates. Their commitment has enabled Acorda to deliver on our
mission of developing therapies that restore function and improve
the lives of people with neurological disorders.”
The Company will provide revised 2017 financial
guidance during its first quarter update call on April 27.
About Acorda Therapeutics
Founded in 1995, Acorda Therapeutics is a
biotechnology company focused on developing therapies that restore
function and improve the lives of people with neurological
disorders. Acorda has an industry-leading pipeline of novel
neurological therapies addressing a range of disorders, including
Parkinson’s disease, migraine and multiple sclerosis. Acorda
markets three FDA-approved therapies, including AMPYRA®
(dalfampridine) Extended Release Tablets, 10 mg.
For more information, please visit the
Company’s website at: www.acorda.com.
Forward-Looking Statement
These statements are subject to risks and
uncertainties that could cause actual results to differ materially,
including: the ability to realize the benefits anticipated from the
Biotie and Civitas transactions, among other reasons because
acquired development programs are generally subject to all the
risks inherent in the drug development process and our knowledge of
the risks specifically relevant to acquired programs generally
improves over time; the ability to successfully integrate Biotie’s
operations and Civitas’ operations, respectively, into our
operations; we may need to raise additional funds to finance our
expanded operations and may not be able to do so on acceptable
terms; our ability to successfully market and sell Ampyra
(dalfampridine) Extended Release Tablets, 10 mg in the U.S., which
will likely be materially adversely affected by the recently
announced court decision in our litigation against filers of
Abbreviated New Drug Applications (each, an “ANDA”) to market
generic versions of Ampyra in the U.S.; third party payers
(including governmental agencies) may not reimburse for the use of
Ampyra or our other products at acceptable rates or at all and may
impose restrictive prior authorization requirements that limit or
block prescriptions; the risk of unfavorable results from future
studies of Ampyra or from our other research and development
programs, including CVT-301 or any other acquired or in-licensed
programs; we may not be able to complete development of, obtain
regulatory approval for, or successfully market CVT-301, any other
products under development, or the products that we will acquire
when we complete the Biotie transaction; the occurrence of adverse
safety events with our products; delays in obtaining or failure to
obtain and maintain regulatory approval of or to successfully
market Fampyra outside of the U.S. and our dependence on our
collaborator Biogen in connection therewith; competition; failure
to protect our intellectual property, to defend against the
intellectual property claims of others or to obtain third party
intellectual property licenses needed for the commercialization of
our products; and failure to comply with regulatory requirements
could result in adverse action by regulatory agencies.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170405005405/en/
Acorda TherapeuticsFelicia Vonella,
914-326-5146fvonella@acorda.com
Acorda Therapeutics (NASDAQ:ACOR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Acorda Therapeutics (NASDAQ:ACOR)
Historical Stock Chart
From Apr 2023 to Apr 2024