On September 9, 2021 Acorda Therapeutics, Inc. reported a corporate restructuring to reduce costs and more closely align operating expenses with expected revenue (Press release, Acorda Therapeutics, SEP 9, 2021, View Source [SID1234587460]). The Company also announced changes to its management team.
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Corporate Restructuring
As a result of the restructuring, the Company is reducing headcount by 15%. Most of the reduction in personnel will take place immediately, with the balance completed in the first quarter of 2022.
The Company expects to realize annualized cost savings of approximately $20 million from the headcount reductions and the outsourcing of certain operations, beginning in 2022. Acorda estimates that it will incur approximately $3.0 million of pre-tax charges for severance and other costs related to the restructuring, through the first quarter of 2022.
Management Changes
Lauren Sabella, currently Acorda’s Chief Commercial Officer, has been named Chief Operating Officer. She will have responsibility for Quality, Information Technology, Technical Operations, and Business Operations / Strategic Planning. Kerry Clem, Acorda’s Executive Vice President of Sales, Market Access, and Operations, has been named Chief Commercial Officer.
"We have made substantial progress over the past year, growing sales of Inbrija, maintaining Ampyra revenue to a substantial degree, and retiring our short-term debt. We have achieved these outcomes despite the significant impact of the pandemic on our business. When the pandemic subsides, we believe that we will have the opportunity to accelerate Inbrija’s trajectory, as in-person interactions with health care providers and patients return to more normal levels. The headcount reductions and structural changes we have made will enable us to operate more efficiently and further align our expenses with revenue, while continuing to grow Inbrija sales," said Ron Cohen, M.D., Acorda’s President and Chief Executive Officer. "We are deeply grateful to the associates who are leaving Acorda for their commitment, hard work, and many contributions."