Acorda Therapeutics, Inc. ( ACOR Quick Quote ACOR - Free Report) reported first-quarter 2020 loss per share of 51 cents, wider than the Zacks Consensus Estimate of a loss of 35 cents but narrower than the year-ago loss of 56 cents.
The company generated total revenues of $28.1 million in the first quarter, missing the Zacks Consensus Estimate of $39 million. Moreover, sales plunged 36.3% year over year due to lower sales of the company’s multiple sclerosis (MS) drug Ampyra.
Shares of Acorda have tanked 53.9% in year so far against the
industry’s increase of 1.7%. Quarter in Detail
Acorda’s newly-launched Parkinson's disease (PD) inhalation therapy, Inbrija, registered sales of $4.4 million in the reported quarter, reflecting a significant year-over-year increase. However, Inbrija sales dropped 27.8% sequentially.
Following the FDA nod in December 2018, Inbrija 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 2019.
Meanwhile, in September 2019, Inbrija was granted a marketing approval by the European Commission (EC) and the drug will likely be launched in the EU during 2020.
On the first-quarter conference call, management stated that Inbrija sales were consistent with the company’s internal projections for the first quarter. However, Inbrija might see a downside in new prescription starts due to the COVID-19 pandemic-related stay-at-home orders and a widespread decrease in physician office visits.
Notably, the majority of Acorda’s net product revenues are derived from the company’s MS drug Ampyra, which generated sales worth $20.1 million in the first quarter, reflecting a 49.8% slump year over year due to generic launches.
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.
In September 2018, Ampyra lost its exclusivity as generics like Mylan’s authorized generic version entered the market.
Meanwhile, royalty revenues were $3.4 million in the quarter, up 21.4% from the year-ago reported figure.
Research and development (R&D) expenses (excluding share-based compensation expenses) were $7.3 million, down 52.2% year over year.
Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) were $39.6 million, down 20.6% year over year.
Acorda reiterated its financial outlook for 2020.
For 2020, the company envisions Ampyra net revenues within $85-$110 million. Operating expenses for the period are forecast within $170-$180 million.
However, Acorda believes that COVID-19 pandemic related stay-at-home orders and widespread decrease in physician office visits, may impact new prescription starts for its new product Inbrija. Therefore, Acorda withdrew its 2020 guidance for the medicine. This also necessitated the withdrawal of total net product revenue outlook for 2020.
Acorda Therapeutics, Inc. Price, Consensus and EPS Surprise Zacks Rank& Other Stocks to Consider
Acorda currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the healthcare sector include Menlo Therapeutics Inc. and Denali Therapeutics Inc. (
DNLI Quick Quote DNLI - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).You can see . the complete list of today’s Zacks #1 Rank stocks here
Menlo Therapeutics’ loss per share estimates have been narrowed 38.2% for 2020 and 66.7% for 2021 over the past 60 days.
Denali Therapeutics’ loss per share estimates have been narrowed 2% for 2020 and 0.4% for 2021 over the past 60 days.
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