On August 4, 2020 Acorda Therapeutics, Inc. (NASDAQ: ACOR) reported its financial results for the second quarter ended June 30, 2020 (Press release, Acorda Therapeutics, AUG 4, 2020, View Source [SID1234562781]).
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"We were pleased with INBRIJA’s performance in the second quarter, especially in light of the significant disruption of COVID-19. Net sales increased by 7% over the first quarter, and dispensed cartons, which reflect actual demand, increased by 13%. This trend continued into July, with dispensed cartons increasing 8% over June, to the highest number since the beginning of the launch," said Ron Cohen, M.D., Acorda’s President and Chief Executive Officer. "We also saw several indications that our programs to improve the experience of patients and physicians are having a positive effect. INBRIJA new prescription requests, which declined dramatically beginning in mid-March, began to rebound in late April and have continued to increase through July. We also saw a 6% increase in new prescribers in the quarter, and the percent of new prescription requests that converted to filled prescriptions increased to 75%, up from 57% in Q1, the highest rate since launch."
Dr. Cohen continued, "We incurred higher-than-expected Medicare rebates in the first half of the year, which impacted net sales. We believe that such rebates are likely to be lower in the second half of 2020, as more patients get through the Medicare Part D donut hole."
Second Quarter 2020 Financial Results
For the quarter ended June 30, 2020, the Company reported INBRIJA net revenue of $4.7 million, compared to $3.0 million for the same quarter in 2019.
For the quarter ended June 30, 2020, the Company reported AMPYRA net revenue of $26.1 million compared to $44.2 million for the same quarter in 2019. In September 2018, AMPYRA lost its exclusivity and generics entered the market. Consequently, the Company expects AMPYRA revenue to continue to decline.
Research and development (R&D) expenses for the quarter ended June 30, 2020 were $5.3 million, including $0.4 million of share-based compensation compared to $19.0 million, including $0.8 million of share-based compensation for the same quarter in 2019.
Sales, general and administrative (SG&A) expenses for the quarter ended June 30, 2020 were $38.7 million, including $1.5 million of share-based compensation compared to $50.2 million, including $3.5 million of share-based compensation for the same quarter in 2019.
Change in fair value of derivative liability for the quarter ended June 30, 2020 was $8.9 million.
Provision for income taxes for the quarter ended June 30, 2020 was $0.6 million compared to a provision for income taxes of $0.2 million for the same quarter in 2019.
The Company reported a GAAP net loss of $17.4 million for the quarter ended June 30, 2020, or $0.37 per diluted share. GAAP net loss in the same quarter of 2019 was $27.5 million, or $0.58 per diluted share.
Non-GAAP net loss for the quarter ended June 30, 2020 was $16.6 million, or $0.35 per diluted share. Non-GAAP net loss in the same quarter of 2019 was $26.3 million, or $0.55 per diluted share. This quarterly non-GAAP net loss measure, more fully described below under "Non-GAAP Financial Measures," excludes share-based compensation charges, non-cash interest charges on our debt, changes in the fair value of acquired contingent consideration, and changes in the fair value of the derivative liability. A reconciliation of the GAAP financial results to non-GAAP financial results is included with the attached financial statements.
At June 30, 2020, the Company had cash, cash equivalents, short-term investments and restricted cash of $103.8 million compared to $168.9 million at year end 2019. Restricted cash includes $37.3 million in escrow related to the 6% semi-annual interest portion of the convertible note exchange completed in December 2019. If the Company is permitted under the terms of the notes and elects to pay interest due in stock, the restricted cash will be released from escrow.
For the full-year 2020, Acorda continues to expect AMPYRA net revenue to be $85 – $110 million, and operating expenses to be $170 – $180 million. The operating expense guidance is a non-GAAP projection that excludes restructuring costs and share-based compensation as more fully described below under "Non-GAAP Financial Measures."
Webcast and Conference Call
The Company will host a conference call today at 4:30 p.m. ET. To participate in the Webcast/Conference call, please note there is a new pre-registration process.
• To register for the Webcast, use the link below:
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• To register for the Conference Call, use the link below:
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A replay of the call will be available from 8:30 p.m. ET on August 4, 2020 until 11:59 p.m. ET on September 3, 2020. To access the replay, please dial (800) 585-8367 (domestic) or (416) 621-4642 (international); reference code 5378839. The archived webcast will be available in the Investor Relations section of the Acorda website at www.acorda.com.