Acorda Therapeutics, Inc.

In Q3 2023, INBRIJA U.S. net sales were $8.1 million, up 4% versus Q3 2022; first-three-quarter sales were up 15% year over year. INBRIJA new prescription request forms increased 32% in Q3 and 38% year to date; dispense cartons were up 4% in Q3 and 6.5% year to date, while total prescriptions were up 10% in Q3 and 11% year to date. AMPYRA U.S. net revenue was $15.7 million, down 26% year over year; the decline was 17% year to date. CFO Michael Gesser said net global INBRIJA revenue was up 6.7% in Q3 and 12.3% year to date, SG&A was essentially flat versus last year in Q3 and down $12.5 million, or 15.6%, year to date, and cash at the end of Q3 was $600,000 behind the Q3 2022 ending balance. The company also reported $1.4 million in INBRIJA ex-U.S. sales and $2.5 million in AMPYRA royalties, for $3.9 million in additional U.S. revenue in Q3. Full-year 2023 guidance was reiterated for INBRIJA U.S. net revenue of $34 million to $38 million, AMPYRA U.S. net revenue of $65 million to $70 million, adjusted operating expense of $93 million to $98 million, and ending cash of $39 million to $42 million.

Ron Cohen emphasized that INBRIJA’s prescription trends are encouraging, pointing to the 38% increase in new prescription request forms year to date as a leading indicator for future growth. He said the company believes its commercial programs are working, including the targeted TV campaign and physician outreach. On AMPYRA, he stressed the strategy is to maintain the brand against generics while keeping access high and managing the expected decline. He also highlighted ongoing efforts to reduce operating expenses and engage convertible debt holders early on the 2024 notes.

Michael Gesser focused on the operating metrics and reiterated the financial outlook. He said SG&A was essentially flat year over year in Q3 and down $12.5 million, or 15.6%, year to date, reflecting cost discipline. He also noted cash at the end of Q3 was $600,000 behind the prior-year balance as the company works toward cash flow neutrality. He reiterated guidance for 2023 ending cash of $39 million to $42 million and adjusted operating expense of $93 million to $98 million.

In Q&A, the main questions were about when the company could become cash flow positive, what measures are being taken to improve forecasting and performance, and how Acorda plans to address the 2024 notes. Ron Cohen said cash flow positive guidance would be updated at the year-end call, and he attributed INBRIJA forecasting challenges to pandemic-era disruption that has since normalized. On accountability, he said the board uses incentive compensation and that management owns stock, aligning incentives with shareholder value. On the notes, he said the company has an open, constructive relationship with bondholders and intends to work collaboratively on the best solution for stakeholders.