[April 30, 2015] |
|
Acorda Reports First Quarter 2015 Financial Results
Acorda Therapeutics, Inc. (Nasdaq:ACOR)
today announced its financial results for the first quarter ended March
31, 2015.
"AMPYRA's 27% increase in sales this quarter over the same period last
year reflects the continued strong growth of the brand, which is
increasingly considered a standard of care to improve walking in people
with MS," said Ron Cohen, M.D., Acorda Therapeutics' President and CEO.
"We also continued to advance our clinical stage pipeline. We are
enrolling participants in Phase 3 trials for CVT-301 in Parkinson's
disease and for dalfampridine in chronic post-stroke walking deficits.
Earlier this month, we presented data from our first Phase 1 clinical
trial of rHIgM22 for remyelination in MS at the American Academy of
Neurology meeting. In addition to being well-tolerated, the antibody was
detected in the cerebrospinal fluid, an encouraging and important step
indicating that it enters the central nervous system. During the second
quarter, we expect to initiate a second Phase 1 study of rHIgM22 in MS
patients experiencing an active relapse."
FINANCIAL RESULTS The Company reported a GAAP net loss of
$3.1 million for the quarter ended March 31, 2015, or $0.07 per diluted
share. GAAP net income in the same quarter of 2014 was $0.7 million, or
$0.02 per diluted share.
Non-GAAP net income for the quarter ended March 31, 2015 was $6.5
million, or $0.15 per diluted share. Non-GAAP net income in the same
quarter of 2014 was $8.8 million, or $0.21 per diluted share. Non-GAAP
net income excludes share based compensation charges, non-cash
convertible debt, acquisition related expenses and tax adjustments. A
reconciliation of the GAAP financial results to non-GAAP financial
results is included in the attached financial statements.
AMPYRA®
(dalfampridine) Extended Release Tablets, 10 mg - For the quarter
ended March 31, 2015, the Company reported AMPYRA net revenue of $92.4
million compared to $72.5 million for the same quarter in 2014.
The Company is reiterating 2015 AMPYRA net sales guidance of $405-$420
million.
ZANAFLEX CAPSULES®(tizanidine
hydrochloride), ZANAFLEX®
(tizanidine hydrochloride) tablets and authorized generic capsules
- For the quarter ended March 31, 2015, the Company reported combined
net revenue and royalties from ZANAFLEX and tizanidine of $2.6 million
compared to $3.1 million for the same quarter in 2014.
FAMPYRA®
(prolonged-release fampridine tablets) - For the quarter ended
March 31, 2015, the Company reported FAMPYRA royalties from sales
outside of the U.S. of $2.3 million compared to $2.4 million for the
same quarter in 2014.
Research and development (R&D) expenses
for the quarter ended March 31, 2015 were $30.6 million, including $1.8
million of share-based compensation, compared to $14.5 million including
$1.1 million of share-based compensation for the same quarter in 2014.
The Company is reiterating 2015 R&D guidance of $150-$160 million.
Sales, general and administrative (SG&A) expenses
for the quarter ended March 31, 2015 were $48.8 million, including $5.3
million of share-based compensation, compared to $46.9 million including
$4.7 million of share-based compensation for the same quarter in 2014.
The Company is reiterating 2015 SG&A guidance of $180-$190 million.
Provision for income taxes for the quarter
ended March 31, 2015 was $(2.0) million, including $0.7 million of cash
taxes, compared to $2.8 million, including $0.5 million of cash taxes
for the same quarter in 2014.
At March 31, 2015 the Company had cash, cash equivalents and investments
of $299.7 million. The Company expects to be cash flow positive in 2015.
AMPYRA Update
-
The U.S. District Court in Delaware, which is adjudicating Abbreviated
New Drug Application (ANDA) challenges to certain AMPYRA patents, has
scheduled a Markman hearing for March 2016 and set a trial date for
September 2016.
-
Petitions for Inter Partes Review (IPR) of two AMPYRA patents have
been submitted to the United States Patent and Trademark Office
(USPTO). The Company is responding to these filings.
-
The Company has five Orange (News - Alert) Book-listed patents on AMPYRA, and will
vigorously defend its intellectual property rights.
Pipeline Update
-
In March, the Company presented new analyses of data from the first
Phase 1 clinical trial of cimaglermin alfa, an investigational drug
for heart failure, at the America College of Cardiology (ACC) 64th
Annual Scientific Session and Expo. The poster contained new analyses
of ejection fraction measures, which found that cimaglermin produced a
dose-dependent benefit at multiple time points for up to three months
following a single infusion. Additional information on adverse events,
demographics, and analysis of hemodynamic and echo parameters were
also reported. Data from the second clinical trial of cimaglermin in
people with heart failure is expected in the second half of 2015.
-
In April, the Company presented data from a Phase 1 clinical trial of
rHIgM22, a remyelinating antibody being studied for the treatment of
multiple sclerosis (MS). Safety data showed rHIgM22 was well-tolerated
in each of the five tested doses, supporting additional clinical
development. In addition, testing detected rHIgM22 in cerebrospinal
fluid (CSF), indicating the drug's access to the central nervous
system. These data were presented at the 67th American Academy of
Neurology Annual Meeting. The Company expects to begin a second Phase
1 trial in relapsing MS patients in the second quarter of 2015.
WEBCAST AND CONFERENCE CALL Ron Cohen, President and Chief
Executive Officer, and Michael Rogers, Chief Financial Officer, will
host a conference call today at 8:30 a.m. ET to review the Company's
first quarter 2015 results.
To participate in the conference call, please dial 800-638-4817
(domestic) or 617-614-3943 (international) and reference the access code
13484356. The presentation will be available via a live webcast on the
Investors section of www.acorda.com.
A replay of the call will be available from 12:30 p.m. ET on April 30,
2015 until midnight on May 7, 2015. To access the replay, please dial
888-286-8010 (domestic) or 617-801-6888 (international) and reference
the access code 42536532. The archived webcast will be available for 30
days in the Investor Relations section of the Acorda website at www.acorda.com.
AMPYRA® (dalfampridine) Important Safety
Information
Do not take AMPYRA if you:
-
have ever had a seizure,
-
have certain types of kidney problems, or
-
are allergic to dalfampridine (4-aminopyridine), the active ingredient
in AMPYRA.
Take AMPYRA exactly as prescribed by your doctor.
Before taking AMPYRA, tell your doctor if you:
-
have kidney problems or any other medical conditions;
-
are taking compounded 4-aminopyridine;
-
are pregnant or plan to become pregnant. It is not known if AMPYRA
will harm your unborn baby;
-
are breast-feeding or plan to breast-feed. It is not known if AMPYRA
passes into your breast milk. You and your doctor should decide if you
will take AMPYRA or breast-feed. You should not do both;
-
are taking any other medicines.
Stop taking AMPYRA and call your doctor right away if you have a seizure
while taking AMPYRA. You could have a seizure even if you never had a
seizure before. Your chance of having a seizure is higher if you take
too much AMPYRA or if your kidneys have a mild decrease of function,
which is common after age 50. Your doctor may do a blood test to check
how well your kidneys are working before you start AMPYRA.
AMPYRA should not be taken with other forms of 4-aminopyridine (4-AP,
fampridine), since the active ingredient is the same.
AMPYRA may cause serious side effects, including:
-
severe allergic reactions. Stop taking AMPYRA and call your doctor
right away or get emergency medical help if you have shortness of
breath or trouble breathing, swelling of your throat or tongue, or
hives;
-
kidney or bladder infections.
The most common adverse events for AMPYRA in MS patients were urinary
tract infection, trouble sleeping, dizziness, headache, nausea,
weakness, back pain, problems with balance, multiple sclerosis relapse,
burning, tingling, or itching of your skin, irritation in your nose and
throat, constipation, indigestion, and pain in your throat.
Please see Patient
Medication Guide at www.ampyra.com/medication-guide.pdf
for additional safety information.
You are encouraged to report negative side effects of prescription drugs
to the FDA. Visit www.fda.gov/medwatch,
or call 1-800-FDA-1088.
About AMPYRA
(dalfampridine) AMPYRA is a potassium channel blocker approved
as a treatment to improve walking in patients with multiple sclerosis
(MS). This was demonstrated by an increase in walking speed. AMPYRA,
which was previously referred to as Fampridine-SR, is an extended
release tablet formulation of dalfampridine (4-aminopyridine, 4-AP), and
is known as prolonged-, modified, or sustained-release fampridine
(FAMPYRA®) in some countries outside the United States (U.S).
In laboratory studies, dalfampridine extended release tablets has been
found to improve impulse conduction in nerve fibers in which the
insulating layer, called myelin, has been damaged. The mechanism by
which dalfampridine exerts its therapeutic effect has not been fully
elucidated. AMPYRA is being developed and commercialized in the U.S. by
Acorda Therapeutics; FAMPYRA is being developed and commercialized by
Biogen Idec in markets outside the U.S. based on a licensing agreement
with Acorda. AMPYRA and FAMPRYA are manufactured globally by Alkermes
Pharma Ireland Limited, a subsidiary of Alkermes plc, based on a supply
agreement with Acorda.
AMPYRA is available by prescription in the United States. For more
information about AMPYRA, including patient assistance and co-pay
programs, healthcare professionals and people with MS can contact AMPYRA
Patient Support Services at 888-881-1918. AMPYRA Patient Support
Services is available Monday through Friday, from 8:00 a.m. to 8:00 p.m.
Eastern Time.
For additional information, including U.S. Full Prescribing Information
and Medication Guide, please visit: www.AMPYRA.com.
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 markets three FDA-approved therapies, including
AMPYRA® (dalfampridine) Extended Release Tablets, 10 mg, a treatment to
improve walking in patients with multiple sclerosis (MS), as
demonstrated by an increase in walking speed. The Company has one of the
leading pipelines in the industry of novel neurological therapies.
Acorda is currently developing a number of clinical and preclinical
stage therapies. This pipeline addresses a range of disorders including
post-stroke walking deficits, Parkinson's disease, epilepsy, neuropathic
pain, heart failure, MS, and spinal cord injury. For more information,
please visit the Company's website at: www.acorda.com.
Forward-Looking Statements This press release includes
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. 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 the ability to realize
the benefits anticipated from the Civitas transaction and to
successfully integrate Civitas' operations into our operations; our
ability to successfully market and sell 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, Plumiaz, 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, Plumiaz, or any other products under
development; we may need to raise additional funds to finance our
expanded operations and may not be able to do so on acceptable terms;
the occurrence of adverse safety events with our products; delays in
obtaining or failure to obtain regulatory approval of or to successfully
market Fampyra outside of the U.S. and our dependence on our
collaboration partner Biogen Idec 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.
These and other risks are described in greater detail in Acorda
Therapeutics' filings with the Securities and Exchange Commission.
Acorda may not actually achieve the goals or plans described in its
forward-looking statements, and investors should not place undue
reliance on these statements. Forward-looking statements made in this
release are made only as of the date hereof, and Acorda disclaims any
intent or obligation to update any forward-looking statements as a
result of developments occurring after the date of this release.
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
historical and forward-looking non-GAAP financial measures. In
particular, Acorda has provided income, adjusted to exclude the items
below. These non-GAAP financial measures are not an alternative for
financial measures prepared in accordance with GAAP. However, the
Company believes the presentation of these non-GAAP financial measures
when viewed in conjunction with our GAAP results, provide investors with
a more meaningful understanding of our ongoing and projected operating
performance because they exclude (i) non-cash charges and benefits that
are substantially dependent on changes in the market price of our common
stock, (ii) non-cash interest charges related to the accounting for our
outstanding convertible debt which are in excess of the actual interest
expense owing on such convertible debt, (iii) changes in the fair value
of acquired contingent consideration which do not correlate to our
actual cash payment obligations in the current period or (vi) non-cash
tax expenses related to our tax accounting which do not correlate to our
actual tax payment obligations. The Company believes these non-GAAP
financial measures help indicate underlying trends in the company's
business and are important in comparing current results with prior
period results and understanding projected operating performance. 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. A reconciliation of the historical non-GAAP
financial results presented in this release to our GAAP financial
results is included in the attached financial statements.
Financial Statements
|
|
|
|
|
|
|
|
Acorda Therapeutics, Inc.
|
Condensed Consolidated Balance Sheet Data
|
(in thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
2015
|
|
|
|
2014
|
Assets
|
|
|
|
|
|
|
|
Cash, cash equivalents, short-term and long-term investments
|
|
|
$
|
299,697
|
|
|
|
$
|
307,618
|
Trade receivable, net
|
|
|
|
30,551
|
|
|
|
|
32,211
|
Other current assets
|
|
|
|
27,288
|
|
|
|
|
24,052
|
Finished goods inventory
|
|
|
|
45,831
|
|
|
|
|
26,837
|
Deferred tax asset
|
|
|
|
20,469
|
|
|
|
|
18,420
|
Property and equipment, net
|
|
|
|
45,919
|
|
|
|
|
46,090
|
Goodwill
|
|
|
|
182,952
|
|
|
|
|
182,952
|
Intangible assets, net
|
|
|
|
432,155
|
|
|
|
|
432,822
|
Other assets
|
|
|
|
14,120
|
|
|
|
|
9,677
|
Total assets
|
|
|
$
|
1,098,982
|
|
|
|
$
|
1,080,679
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other liabilities
|
|
|
$
|
82,094
|
|
|
|
$
|
73,869
|
Deferred product revenue
|
|
|
|
29,121
|
|
|
|
|
29,420
|
Current portion of deferred license revenue
|
|
|
|
9,057
|
|
|
|
|
9,057
|
Current portion of revenue interest liability
|
|
|
|
749
|
|
|
|
|
893
|
Current portion of notes payable
|
|
|
|
1,144
|
|
|
|
|
1,144
|
Convertible senior notes
|
|
|
|
289,607
|
|
|
|
|
287,699
|
Contingent consideration
|
|
|
|
55,700
|
|
|
|
|
52,600
|
Non-current portion of deferred license revenue
|
|
|
|
48,306
|
|
|
|
|
50,570
|
Deferred tax liability
|
|
|
|
23,885
|
|
|
|
|
23,885
|
Other long-term liabilities
|
|
|
|
10,299
|
|
|
|
|
11,287
|
Stockholders' equity
|
|
|
|
549,020
|
|
|
|
|
540,255
|
Total liabilities and stockholders' equity
|
|
|
$
|
1,098,982
|
|
|
|
$
|
1,080,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acorda Therapeutics, Inc.
|
Consolidated Statements of Operations
|
(in thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
2015
|
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Net product revenues
|
|
|
|
|
|
$
|
93,500
|
|
|
|
|
|
$
|
74,463
|
|
Royalty revenues
|
|
|
|
|
|
|
4,087
|
|
|
|
|
|
|
3,791
|
|
License revenue
|
|
|
|
|
|
|
2,264
|
|
|
|
|
|
|
2,264
|
|
Total revenues
|
|
|
|
|
|
|
99,851
|
|
|
|
|
|
|
80,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
18,446
|
|
|
|
|
|
|
15,529
|
|
Cost of license revenue
|
|
|
|
|
|
|
159
|
|
|
|
|
|
|
159
|
|
Research and development
|
|
|
|
|
|
|
30,636
|
|
|
|
|
|
|
14,522
|
|
Selling, general and administrative
|
|
|
|
|
|
|
48,769
|
|
|
|
|
|
|
46,892
|
|
Change in fair value of acquired contingent consideration
|
|
|
|
|
|
|
3,100
|
|
|
|
|
|
|
-
|
|
Total operating expenses
|
|
|
|
|
|
|
101,110
|
|
|
|
|
|
|
77,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
|
|
|
$
|
(1,259
|
)
|
|
|
|
|
$
|
3,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net
|
|
|
|
|
|
|
(3,864
|
)
|
|
|
|
|
|
80
|
|
(Loss) income before income taxes
|
|
|
|
|
|
|
(5,123
|
)
|
|
|
|
|
|
3,496
|
|
Benefit from (provision for) income taxes
|
|
|
|
|
|
|
2,038
|
|
|
|
|
|
|
(2,793
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
|
|
|
$
|
(3,085
|
)
|
|
|
|
|
$
|
703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share - basic
|
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
$
|
0.02
|
|
Net (loss) income per common share - diluted
|
|
|
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
$
|
0.02
|
|
Weighted average per common share - basic
|
|
|
|
|
|
|
42,031
|
|
|
|
|
|
|
40,934
|
|
Weighted average per common share - diluted
|
|
|
|
|
|
|
42,031
|
|
|
|
|
|
|
42,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acorda Therapeutics, Inc.
|
Non-GAAP Income and Income per Common Share Reconciliation
|
(in thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
GAAP net (loss) income
|
|
|
$
|
(3,085
|
)
|
|
|
$
|
703
|
Pro forma adjustments:
|
|
|
|
|
|
|
Non-cash interest expense (1)
|
|
|
|
2,103
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Non-cash taxes (2)
|
|
|
|
(2,781
|
)
|
|
|
|
2,333
|
|
|
|
|
|
|
|
Change in fair value of acquired contingent consideration (3)
|
|
|
|
3,100
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Share-based compensation expenses included in R&D
|
|
|
|
1,822
|
|
|
|
|
1,104
|
Share-based compensation expenses included in SG&A
|
|
|
|
5,304
|
|
|
|
|
4,653
|
Total share-based compensation expenses
|
|
|
|
7,126
|
|
|
|
|
5,757
|
|
|
|
|
|
|
|
Total pro forma adjustments
|
|
|
|
9,548
|
|
|
|
|
8,090
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
$
|
6,463
|
|
|
|
$
|
8,793
|
|
|
|
|
|
|
|
Net income per common share - basic
|
|
|
$
|
0.15
|
|
|
|
$
|
0.21
|
Net income per common share - diluted
|
|
|
$
|
0.15
|
|
|
|
$
|
0.21
|
Weighted average per common share - basic
|
|
|
|
42,031
|
|
|
|
|
40,934
|
Weighted average per common share - diluted
|
|
|
|
43,585
|
|
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42,235
|
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|
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(1) Non-cash interest expense related to convertible senior notes.
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(2) $0.7 million and $0.5 million paid in cash taxes in the three
months ended 2015 and 2014, respectively.
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(3) Changes in fair value of acquired contingent consideration
related to Civitas transaction.
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