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Acorda Therapeutics, Inc. (ACOR)·Q1 2023 Earnings Summary

Executive Summary

  • Q1 2023 revenue was $22.3M with GAAP EPS of -$0.69; Inbrija U.S. grew 52% YoY to $5.6M while Ampyra declined 15% to $12.6M .
  • Management reaffirmed 2023 net sales guidance and highlighted marketing traction (TV streaming campaign with 2.5M views in six weeks) and ex‑U.S. expansion via a China distribution agreement with Chance Pharmaceuticals .
  • Liquidity remained constrained (cash and equivalents $30.3M; cash+restricted $37.8M), with a scheduled $6.2M cash interest payment on June 1, 2023 and no option to pay note interest in stock thereafter .
  • Near‑term stock catalysts: guidance reaffirmation, commercial momentum in Inbrija, and China deal structure (upfront/milestone economics) providing optionality for cash inflows .

What Went Well and What Went Wrong

What Went Well

  • Inbrija U.S. net revenue +52% YoY to $5.6M; ex‑U.S. $0.5M contribution from Spain launch. “We were very pleased to see INBRIJA’s strong performance... U.S. net revenue up by 52%...” .
  • Marketing lift: “In April, we launched an INBRIJA television commercial on ~50 streaming services... viewed over 2.5 million times... driving substantial traffic” .
  • China expansion: Deal with Chance includes $2.5M upfront, near‑term up to $6M milestone, $3M approval milestone, up to $132.5M sales milestones, plus per‑carton fee .

What Went Wrong

  • Ampyra net revenue fell 15% YoY to $12.6M amid ongoing generic erosion; royalty revenue decreased to $3.5M (-12.5% YoY) .
  • Continued operating losses (operating loss -$11.5M; net loss -$16.8M) and high SG&A ($22.5M), with amortization of intangibles $7.7M .
  • Liquidity constraints and debt service pressures persisted; $6.2M cash interest due June 1, 2023 and loss of option to pay interest in stock after that date .

Financial Results

MetricQ1 2022Q3 2022Q4 2022Q1 2023
Total Revenues ($USD Millions)$22.534 $33.511 $31.472 $22.258
GAAP Diluted EPS ($USD)-$1.85 -$0.57 N/A-$0.69
Operating (Loss) ($USD Millions)($16.703) ($4.989) N/A($11.476)
Net Income (Loss) ($USD Millions)($24.522) ($13.854) $19.1 ($16.824)
Cost of Sales ($USD Millions)$5.967 $11.005 N/A$3.234
SG&A ($USD Millions)$26.938 $22.997 N/A$22.514
R&D ($USD Millions)$1.694 $1.383 $1.2 $1.386

Segment and revenue components:

Revenue ComponentQ1 2022Q3 2022Q4 2022Q1 2023
Ampyra Net Revenue ($USD Millions)$14.904 $21.110 $18.8 $12.606
Inbrija U.S. Net Revenue ($USD Millions)$3.671 $7.848 $9.0 $5.587
Inbrija ex‑U.S. Net Revenue ($USD Millions)$0.000 $1.006 $0.0 $0.526
Fampyra Royalty Revenue ($USD Millions)$3.959 $3.047 $2.7 $3.528
License Revenue ($USD Millions)$0.000 $0.500 $0.0 $0.011

KPIs and balance sheet highlights:

KPIQ4 2022Q1 2023
Cash & Cash Equivalents ($USD Millions)$37.536 $30.255
Restricted Cash ($USD Millions)$7.139 (6.884 + 0.255) $7.499 (6.989 + 0.510)
Cash + Restricted ($USD Millions)$44.675 $37.754
Accounts Receivable, Net ($USD Millions)$13.866 $9.190
Inventory, Net ($USD Millions)$12.752 $13.465
Convertible Senior Secured Notes (Carrying Amount) ($USD Millions)$167.031 $171.496
Total Operating Expenses ($USD Millions)N/A$33.734
Interest Expense on Notes ($USD Millions, Qtr)N/A$7.570

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales (company, as stated on call)FY 2023$65–$70M (provided in Q4 2022 update) Reaffirmed $65–$70M Maintained
Financing (Interest Payment Modality)June 1, 2023Could be paid in stock prior to June 1, 2023 Will pay ~$6.2M interest in cash; option to pay in stock no longer available thereafter Updated (clarified cash only)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2022 and Q4 2022)Current Period (Q1 2023)Trend
Product performance: InbrijaInbrija U.S. stable at $7.8M; Germany initial stocking $1.0M U.S. net revenue $5.6M (+52% YoY); ex‑U.S. $0.5M from Spain launch Improving demand; marketing traction
Product performance: AmpyraQ3 2022 $21.1M; ongoing generic erosion $12.6M (-15% YoY) Declining due to generics
Marketing/technology initiativesFocus on physician access, e‑prescribing, field support TV streaming campaign launched; 2.5M views in six weeks Enhanced DTC reach
Supply chain/manufacturingCatalent MSA minimum commitments; restructuring Chelsea facility New MSA reduces commitments/pricing; PSD‑7 scale‑up; 2023 purchase 15 batches ($10.5M) Better cost curve post-2024
Regulatory/legalAlkermes arbitration award; cease royalties; alternative Ampyra supply Benefits embedded in lower COGS; continued legal follow‑ups Structural COGS improvement
International expansionGermany launch (Esteve); Latin America agreements (Biopas) Spain launch; China distribution deal (Chance) Expanding footprint

Management Commentary

  • “We were very pleased to see INBRIJA’s strong performance in the quarter, with U.S. net revenue up by 52% over the same quarter of 2022.” — Ron Cohen, President & CEO .
  • “In April, we launched an INBRIJA television commercial on approximately 50 streaming services... viewed over 2.5 million times... already driving substantial traffic to the INBRIJA website.” — Ron Cohen .
  • China: “Under the terms of the agreement, Acorda will receive an up‑front payment of $2.5M, a near term milestone of up to $6M, $3M upon regulatory approval... up to $132.5M in sales milestones, and a fixed fee per carton.” — Company/Chance Pharma joint release .
  • Financing clarity: “We will make a cash interest payment of approximately $6.2 million... Following the June 1, 2023 interest payment, [we] will no longer have the option to pay interest... in common stock.” — Q1 2023 10‑Q .

Q&A Highlights

  • Guidance: Management reiterated 2023 net sales guidance of $65–$70M and indicated sales stabilization expectations, clarifying drivers include Inbrija growth and Ampyra decline moderation .
  • Demand drivers: Discussion centered on DTC campaign impact and increased new prescription request forms (+45% YoY), with emphasis on patient education and digital funnel conversion .
  • Ex‑U.S. trajectory: Spain ramp and China pathway (regulatory timeline, milestones, supply economics) were highlighted; Latin America filings progressing via Biopas as previously disclosed .
  • Financing and OpEx: Questions addressed liquidity, interest obligations, and operating expense discipline; management pointed to Catalent MSA renegotiation and SG&A control .

Estimates Context

  • S&P Global (Capital IQ) consensus estimates were unavailable for ACOR due to missing CIQ mapping in our data pipeline; as a result, an estimates vs. actual comparison could not be prepared from S&P Global. We recommend caution when referencing third‑party estimates and note the absence of SPGI consensus for this quarter [SpgiEstimatesError].

Key Takeaways for Investors

  • Inbrija momentum and expanded DTC push are driving improved U.S. demand; watch subsequent quarters for conversion of higher top‑of‑funnel activity into sustained net revenue growth .
  • Ampyra erosion continues but cost structure improvements (Alkermes royalty elimination, Patheon supply) support margin resilience; monitor discount/allowance seasonality in Q2/Q3 .
  • Liquidity remains tight; debt service obligations (cash interest) and limited flexibility post‑June 1 underscore the importance of operational cash generation and milestone inflows (China) .
  • Manufacturing economics should improve post‑2024 as PSD‑7 scales at Catalent; near‑term batch commitments ($10.5M FY23; $15.5M FY24) are a known cash outlay to bridge capacity expansion .
  • Near‑term stock reaction catalysts: confirmation of guidance trajectory, incremental ex‑U.S. announcements (China pathway steps, LATAM approvals), and evidence of DTC conversion to scripts .
  • Risk skew: high leverage and limited cash buffer; sensitivity to Inbrija uptake and timing of milestones; monitor working capital (AR/inventory) and SG&A run‑rate .
  • Trading implication: Given seasonal dynamics and marketing momentum, the next two quarters are pivotal for validating Inbrija growth; liquidity constraints and debt covenants argue for disciplined position sizing until cash visibility improves .