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Acorda Therapeutics, Inc. (ACOR)·Q2 2023 Earnings Summary

Executive Summary

  • Q2 2023 total revenues were $29.675M, down 4.4% year over year (Q2 2022: $31.051M) and up 31.7% sequentially (Q1 2023: $22.258M). Diluted EPS was -$7.55 versus -$54.01 in Q2 2022 and -$0.69 in Q1 2023, reflecting lower losses and the June 1-for-20 reverse split .
  • INBRIJA U.S. net revenue rose 12% YoY to $8.3M; INBRIJA worldwide was $9.1M. AMPYRA net revenue decreased 7% YoY to $16.9M; FAMPYRA royalties were $2.9M .
  • Guidance was reduced: INBRIJA U.S. net revenue to $34–$38M (from $38–$42M), adjusted OPEX to $93–$98M (from $93–$103M), and ending cash to $39–$44M (from $43–$47M); AMPYRA guidance reaffirmed at $65–$70M. Management no longer expects to be cash flow neutral in 2023; Nasdaq compliance regained after a June reverse split .
  • Management highlighted demand drivers: PRFs up 42% in 1H23; streaming TV campaign reached ~8M views in 4 months; 165 physicians prescribed INBRIJA for the first time after viewing the campaign. However, U.S. net revenue grew slower than projected, prompting guidance revisions .

What Went Well and What Went Wrong

What Went Well

  • INBRIJA U.S. net revenue increased 12% YoY to $8.3M, supported by commercialization efforts; worldwide INBRIJA was $9.1M with Spain launch contributing $0.8M ex-U.S. .
  • PRFs rose 42% in 1H23; streaming TV campaign garnered ~8M views in 4 months, with 165 first-time prescribers—“New PRFs are a leading indicator of future revenue growth, which we expect will accelerate going forward” (Ron Cohen, CEO) .
  • Operating discipline: SG&A fell to $21.8M from $30.1M YoY; adjusted operating expenses dropped to $23.4M from $31.6M YoY, reflecting sustained cost control .

What Went Wrong

  • Total revenues declined 4.4% YoY; AMPYRA net revenue fell 7% YoY to $16.9M, with ongoing generic erosion, though management noted attrition curve flattening .
  • Cash and equivalents decreased to $25.270M (cash, cash equivalents) and $26.4M including restricted cash at June 30, 2023, down from $44.7M at year-end 2022, tightening liquidity against $176.164M convertible notes outstanding .
  • Guidance cut and removal of 2023 cash flow neutrality outlook signal slower-than-expected U.S. net revenue ramp for INBRIJA; ex-U.S. timing (Spain shipments largely in Q1) limited Q2 ex-U.S. contribution .

Financial Results

MetricQ2 2022Q1 2023Q2 2023
Total Revenues ($USD Millions)$31.051 $22.258 $29.675
Net Income (Loss) ($USD Millions)$(46.682) $(16.824) $(9.381)
Diluted EPS ($USD)$(54.01) $(0.69) $(7.55)
R&D ($USD Millions)$1.525 $1.386 $1.550
SG&A ($USD Millions)$30.067 $22.514 $21.825
Adjusted Operating Expenses (Non-GAAP) ($USD Millions)$31.592 $23.900 $23.375
Cash and Cash Equivalents ($USD Millions)n/a$30.255 $25.270
Net Income Margin % (Calculated)-150.3% -75.6% -31.6%

Segment revenue breakdown:

Segment Revenue ($USD Millions)Q4 2022Q1 2023Q2 2023
INBRIJA U.S. Net Revenue$9.0 $5.6 $8.3
INBRIJA ex-U.S. Net Revenue$0.0 $0.5 $0.8
INBRIJA Worldwide Net Revenue$9.0 $6.1 $9.1
AMPYRA Net Revenue$18.8 $12.6 $16.9
FAMPYRA Royalty Revenue$2.7 $2.9 $2.9

KPIs and commercial metrics:

KPIQ1 2023Q2 2023
INBRIJA PRF growth YoY+45% vs Q1 2022 +42% in 1H23 vs 1H22
Streaming TV ad views~2.5M in first six weeks (launched April) ~8M in first 4 months
First-time prescribers from campaignn/a165 physicians in 2023

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
INBRIJA U.S. Net Revenue ($USD Millions)FY 2023$38–$42 $34–$38 Lowered
AMPYRA Net Revenue ($USD Millions)FY 2023$65–$70 $65–$70 Maintained
Adjusted OPEX ($USD Millions)FY 2023$93–$103 $93–$98 Lowered upper end
Ending Cash Balance ($USD Millions)FY 2023$43–$47 $39–$44 Lowered
Cash Flow NeutralityFY 2023Not explicitly statedNot expected in 2023 New disclosure
Nasdaq Compliance StatusN/AExtension to June 20, 2023 Regained compliance after 1-for-20 reverse split Achieved

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2022)Previous Mentions (Q1 2023)Current Period (Q2 2023)Trend
INBRIJA U.S. trajectoryU.S. net revenue $9.0M; focus on trajectory improvement U.S. net revenue $5.6M; PRFs +45% YoY; new marketing program launched U.S. net revenue $8.3M; PRFs +42% in 1H23; 165 first-time prescribers Improving demand indicators
Marketing/TV campaignNot discussedStreaming TV campaign (2.5M views in 6 weeks) ~8M views in 4 months; prescriber conversion noted Scaling reach and impact
Ex-U.S. commercializationGermany launch and Spain noted Spain launch in Feb; ex-U.S. $0.5M Spain contributed $0.8M ex-U.S.; initial shipments mostly Q1 Building ex-U.S. base
Manufacturing/supply (Catalent)New global supply agreement reducing COGS starting 2023 No new updateNo new update in Q2 PR Structural COGS benefit in place
Financial leverage/liquidityConvertible notes and cash trends detailed Restricted cash and notes detailed Cash down to $26.4M including restricted; notes $176.164M Liquidity tighter; leverage elevated
Nasdaq/Corporate actionsExtension granted to June 20, 2023 Annual meeting and board changes 1-for-20 reverse split; compliance regained Compliance achieved
Guidance and cash flowFull-year guidance provided (higher INBRIJA range) Guidance reaffirmed Guidance lowered; cash flow neutrality not expected More conservative outlook

Note: The Q2 2023 earnings call transcript is available externally: Seeking Alpha and Marketscreener .

Management Commentary

  • “INBRIJA’s growth in the first half of 2023 improved significantly versus the first half of 2022, including a 42% increase in new prescription request forms, or PRFs… New PRFs are a leading indicator of future revenue growth, which we expect will accelerate going forward.” — Ron Cohen, M.D., President & CEO .
  • “U.S. net revenue in the first half of the year increased less quickly than we projected, and we are therefore revising our guidance… and as a result we do not expect to be cash flow neutral this year.” — Ron Cohen, M.D. .
  • “We were also pleased that Ampyra continued to perform well, with flattening of its attrition curve.” — Ron Cohen, M.D. .
  • Corporate actions: 1-for-20 reverse split completed June 2; Nasdaq minimum bid compliance regained June 20; Board changes (Tom Burns elected; Jeff Randall rotated off) .

Q&A Highlights

  • External transcripts indicate the call addressed INBRIJA demand drivers (PRFs and TV campaign), guidance reduction rationale, and liquidity/cash flow trajectory; management reiterated the slower-than-expected U.S. net revenue ramp and clarified ex-U.S. Spain launch timing .
  • Management emphasized PRFs as a leading indicator and the impact of the streaming campaign on prescriber conversion (165 first-time prescribers), aligning with prepared remarks .
  • Guidance clarifications: INBRIJA U.S. cut to $34–$38M, adjusted OPEX lowered, and explicit removal of 2023 cash flow neutrality expectation .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for ACOR Q2 2023 were unavailable via our SPGI integration due to missing mapping; accordingly, estimate comparison is not provided. Values retrieved from S&P Global were unavailable for ACOR due to a mapping issue.
  • Given the lack of consensus data, investors should anchor on reported results and management’s revised 2023 guidance for context .

Key Takeaways for Investors

  • INBRIJA demand indicators strengthened (PRFs +42% in 1H; significant ad reach; prescriber conversion), but revenue growth lagged internal expectations—focus near term on translation of leading indicators to net sales and inventories/orders stabilization .
  • Sequential revenue growth (+31.7% vs Q1) alongside materially lower SG&A and adjusted OPEX signals improved operating efficiency; monitor whether cost discipline offsets revenue variability in 2H23 .
  • Guidance reset (INBRIJA U.S., adjusted OPEX, ending cash) and removal of 2023 cash neutrality are cautionary; liquidity remains a key risk given cash decline and $176.164M convertible notes .
  • AMPYRA erosion persists but attrition appears to be flattening; watch sustainability of royalty streams and COGS benefits from the Catalent agreement to support margins .
  • Corporate housekeeping de-risks listing status (reverse split, Nasdaq compliance) and governance updates completed; strategic ex-U.S. launches (Spain) provide optionality for incremental revenue over time .
  • Without consensus estimates, price reaction will hinge on narrative around INBRIJA momentum and cash trajectory; near-term trading likely sensitive to additional commercial updates and any balance sheet actions .