Acorda Therapeutics Implements Corporate Restructuring, Provides Third Quarter 2019 Update
October 23 2019 - 04:00PM
Business Wire
- Total non-GAAP operating expenses for the full year 2020
expected to be $180 - $190 million1
- Estimated 2020 operating expenses reduced by ~$60 million
compared to 2019 revised guidance - Includes more than $21 million
in expected annualized cost savings from headcount reduction
- September 30, 2019 cash balance of $253 million; 2019 year end
cash balance expected to be greater than $225 million
- INBRIJA and AMPYRA third quarter 2019 net sales of ~$5 million
and ~$38 million, respectively
Acorda Therapeutics, Inc. (Nasdaq: ACOR) today announced a
corporate restructuring to reduce costs and focus its resources on
the launch of INBRIJA. As part of this restructuring, Acorda is
reducing headcount by approximately 25% through a reduction in
force. The Company has also reduced estimated 2019 operating
expenses, and is providing 2020 operating expense guidance. The
majority of the reduction in personnel will take place immediately,
and will be completed in the first quarter of 2020. The Company
also provided a financial update for the quarter ended September
30, 2019.
Corporate Restructuring
The Company expects to realize estimated annualized cost savings
related to headcount reduction of approximately $21 million
beginning in 2020. Acorda estimates that it will incur
approximately $8 million of pre-tax charges for severance and other
costs related to the restructuring, through the first quarter of
2020.
The Company also provided revised 2019 and new 2020 financial
guidance:
- 2019: R&D expenses for the full year 2019 are
expected to be $55 - $60 million, reduced from $70 - $80 million.
SG&A expenses for the full year 2019 are expected to be $185 -
$190 million, reduced from $200 - $210 million.
- 2020: R&D expenses for the full year 2020 are
expected to be $20 - $25 million and SG&A expenses for the full
year 2020 are expected to be $160 - $165 million.
- These are non-GAAP projections that exclude restructuring costs
and share-based compensation, as more fully described below under
“Non-GAAP Financial Measures.”
“This restructuring, although difficult, will enable Acorda to
focus its resources on ensuring the success of INBRIJA, and will
provide flexibility for the Company to address its capital
structure,” said Ron Cohen, M.D., Acorda's President and CEO.
“INBRIJA is an important medication for people with Parkinson’s who
suffer from OFF periods, thanks to the extraordinary work of
Acorda’s associates in developing and making it available. We are
saddened that a number of them will be leaving the company, and
grateful for their commitment and many contributions.”
Third Quarter 2019
Update
For the quarter ended September 30, 2019, the Company reported
INBRIJA net revenue of $4.9 million. INBRIJA became commercially
available on February 28, 2019.
For the quarter ended September 30, 2019, the Company reported
AMPYRA net revenue of $37.6 million compared to $137.8 million for
the same quarter in 2018
As of September 30, 2019, the Company had cash and cash
equivalents of approximately $253 million.
The Company will provide detailed third quarter 2019 financial
results in connection with its regularly scheduled update on
November 4, 2019.
Non-GAAP Financial Measures
This press release includes financial results prepared in
accordance with accounting principles generally accepted in the
United States (GAAP), and also certain forward-looking non-GAAP
financial measures. In particular, Acorda has provided 2019 and
2020 guidance for R&D and SG&A expenses on a non-GAAP
basis. Due to the forward looking nature of this information, the
amount of compensation charges and benefits needed to reconcile
these measures to the most directly comparable GAAP financial
measures is dependent on future changes in the market price of our
common stock and is not available at this time. Non-GAAP financial
measures are not an alternative for financial measures prepared in
accordance with GAAP. The Company believes that these non-GAAP
measures, when viewed in conjunction with our GAAP results, provide
investors with a more meaningful understanding of our ongoing and
projected R&D and SG&A expenses because these measures
exclude (i) non-cash compensation charges and benefits that are
substantially dependent on changes in the market price of our
common stock, and (ii) expenses that pertain to non-routine
restructuring events. Also, management uses these non-GAAP
financial measures to establish budgets and operational goals, and
to manage the Company's business and to evaluate its
performance.
About Acorda Therapeutics
Acorda Therapeutics develops therapies to restore function and
improve the lives of people with neurological disorders. INBRIJA™
(levodopa inhalation powder) is approved for intermittent treatment
of OFF episodes in adults with Parkinson’s disease treated with
carbidopa/levodopa. INBRIJA is not to be used by patients who take
or have taken a nonselective monoamine oxidase inhibitor such as
phenelzine or tranylcypromine within the last two weeks. INBRIJA
utilizes Acorda’s innovative ARCUS® pulmonary delivery system, a
technology platform designed to deliver medication through
inhalation. Acorda also markets the branded AMPYRA® (dalfampridine)
Extended Release Tablets, 10 mg.
Forward-Looking Statement
This press release includes forward-looking statements. All
statements, other than statements of historical facts, regarding
management's expectations, beliefs, goals, plans or prospects
should be considered forward-looking. These statements are subject
to risks and uncertainties that could cause actual results to
differ materially, including: we may not be able to successfully
market Inbrija or any other products under development; risks
associated with complex, regulated manufacturing processes for
pharmaceuticals, which could affect whether we have sufficient
commercial supply of Inbrija to meet market demand; third party
payers (including governmental agencies) may not reimburse for the
use of Inbrija or our other products at acceptable rates or at all
and may impose restrictive prior authorization requirements that
limit or block prescriptions; competition for Inbrija, Ampyra and
other products we may develop and market in the future, including
increasing competition and accompanying loss of revenues in the
U.S. from generic versions of Ampyra (dalfampridine) following our
loss of patent exclusivity; the ability to realize the benefits
anticipated from acquisitions, 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; we may need to raise additional funds to finance our
operations and may not be able to do so on acceptable terms; the
risk of unfavorable results from future studies of Inbrija
(levodopa inhalation powder) or from our other research and
development programs, or any other acquired or in-licensed
programs; the occurrence of adverse safety events with our
products; the outcome (by judgment or settlement) and costs of
legal, administrative or regulatory proceedings, investigations or
inspections, including, without limitation, collective,
representative or class action litigation; 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.
These and other risks are described in greater detail in our
filings with the Securities and Exchange Commission. We may not
actually achieve the goals or plans described in our
forward-looking statements, and investors should not place undue
reliance on these statements. Forward-looking statements made in
this press release are made only as of the date hereof, and we
disclaim any intent or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this press release.
1 This guidance is a non-GAAP projection that excludes
restructuring costs and share-based compensation, as more fully
described below under “Non-GAAP Financial Measures.”
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version on businesswire.com: https://www.businesswire.com/news/home/20191023005789/en/
MEDIA: Tierney Saccavino (914) 326-5104
tsaccavino@acorda.com
INVESTOR RELATIONS: Felicia Vonella (914) 326-5146
fvonella@acorda.com
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