On October 23, 2019 Acorda Therapeutics, Inc. (Nasdaq: ACOR) reported a corporate restructuring to reduce costs and focus its resources on the launch of INBRIJA (Press release, Acorda Therapeutics, OCT 23, 2019, View Source [SID1234542436]). As part of this restructuring, Acorda is reducing headcount by approximately 25% through a reduction in force. The Company has also reduced estimated 2019 operating expenses, and is providing 2020 operating expense guidance. The majority of the reduction in personnel will take place immediately, and will be completed in the first quarter of 2020. The Company also provided a financial update for the quarter ended September 30, 2019.

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Corporate Restructuring

The Company expects to realize estimated annualized cost savings related to headcount reduction of approximately $21 million beginning in 2020. Acorda estimates that it will incur approximately $8 million of pre-tax charges for severance and other costs related to the restructuring, through the first quarter of 2020.

The Company also provided revised 2019 and new 2020 financial guidance:

2019: R&D expenses for the full year 2019 are expected to be $55 – $60 million, reduced from $70 – $80 million. SG&A expenses for the full year 2019 are expected to be $185 – $190 million, reduced from $200 – $210 million.
2020: R&D expenses for the full year 2020 are expected to be $20 – $25 million and SG&A expenses for the full year 2020 are expected to be $160 – $165 million.
These are non-GAAP projections that exclude restructuring costs and share-based compensation, as more fully described below under "Non-GAAP Financial Measures."
"This restructuring, although difficult, will enable Acorda to focus its resources on ensuring the success of INBRIJA, and will provide flexibility for the Company to address its capital structure," said Ron Cohen, M.D., Acorda’s President and CEO. "INBRIJA is an important medication for people with Parkinson’s who suffer from OFF periods, thanks to the extraordinary work of Acorda’s associates in developing and making it available. We are saddened that a number of them will be leaving the company, and grateful for their commitment and many contributions."

Third Quarter 2019 Update

For the quarter ended September 30, 2019, the Company reported INBRIJA net revenue of $4.9 million. INBRIJA became commercially available on February 28, 2019.

For the quarter ended September 30, 2019, the Company reported AMPYRA net revenue of $37.6 million compared to $137.8 million for the same quarter in 2018

As of September 30, 2019, the Company had cash and cash equivalents of approximately $253 million.

The Company will provide detailed third quarter 2019 financial results in connection with its regularly scheduled update on November 4, 2019.