Acorda Therapeutics, Inc. ( ACOR Quick Quote ACOR - Free Report) reported third-quarter 2019 loss per share of 46 cents, narrower than the Zacks Consensus Estimate of a loss of 51 cents. However, the figure came in against the year-ago earnings of 17 cents.
The company generated total revenues of $47.7 million in the third quarter, beating the Zacks Consensus Estimate of $44 million. However, sales tumbled 66.6% year over year due to lower sales of multiple sclerosis (MS) drug Ampyra.
Shares of Acorda have plunged 87.2% so far this year against the
industry’s increase of 1%. Quarter in Detail
Acorda’s newly approved Parkinson's disease (PD) drug Inbrija generated sales of $4.9 million in the reported quarter, reflecting a sequential increase of 63.3%.
Notably, last December, the FDA approved Inbrija. Following this nod, the drug became the first and the only approved inhaled levodopa for treating OFF periods in patients suffering Parkinson’s and receiving a carbidopa / levodopa regimen. Inbrija was launched in February this year.
In September 2019, Inbrija 33 mg inhalation powder was granted a marketing authorization by the European Commission (EC). This should boost the drug’s sales in the future quarters.
Management stated that it is making a good progress with Inbrija’s launch in the United States, which received an encouraging feedback, both from doctors and patients since its unveiling. Approximately 6,400 prescription request forms for Inbrija were received through October 2019. Per the company's statement on the conference call, total Inbrija prescriptions increased by more than 60% in the third quarter compared to with the second quarter.
Notably, majority of Acorda’s net product revenues are drawn from the company’s MS drug Ampyra, which generated sales of $37.6 million in the third quarter, reflecting a 72.7% plunge year over year and a 14.9% decline sequentially due to generic competition.
Sales erosion due to generic competition has been pulling Ampyra’s revenues down for some time now. Acorda believes that Ampyra sales will continue to see a sharp decline in the quarters ahead.
Significantly, last September, Ampyra lost its exclusivity as generics entered the market including Mylan's
MYL authorized generic version.
Meanwhile, royalty revenues were $2.9 million in the quarter, almost in line with the year-ago reported figure.
Acorda’s research and development (R&D) expenses (excluding share-based compensation expenses) were $15.4 million, down 29.4% year over year.
Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) were $46.3 million, up 16.9% year over year.
Acorda had $253 million worth of cash, cash equivalents and investments as of Sep 30, 2019 compared with $296.9 million as of Jun 30, 2019.
In October 2019, Acorda announced a corporate restructuring and along with it, the company revised its 2019 financial outlook and issued 2020 financial guidance.
As part of its corporate strategy, management stated to trim the workforce by almost 25%. The company expects to realize estimated annualized cost savings of approximately $21 million beginning next year due to headcount reduction.
Back then, Acorda lowered its previously issued research and development (R&D) expenses and selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) for the full year.
Guidance for R&D expenses was lowered to the range of $55-$60 million from the previous expectation of $70-$80 million. SG&A expenses’ guidance was lowered to the $185-$190 million band from $200-$210 million expected earlier.
For 2020, R&D expenses are expected in the range of $20-$25 million while SG&A expenses are anticipated in the $160-$165 million band.
In the earnings release, Acorda reiterated the guidance it issued last month.
Acorda Therapeutics, Inc. Price, Consensus and EPS Surprise Zacks Rank & Other Stocks to Consider
Acorda currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the healthcare sector include ProQR Therapeutics N.V.
PRQR and Anika Therapeutics Inc. ANIK, both flaunting a Zacks Rank of 1. You can see . the complete list of today’s Zacks #1 Rank stocks here
ProQR Therapeutics’ loss per share estimates have been narrowed 6.3% for 2019 and 0.6% for 2020 over the past 60 days.
Anika’s earnings estimates have been revised 16% upward for 2019 and 19.1% for 2020 over the past 60 days. The stock has skyrocketed 98.6% year to date.
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