Acorda Therapeutics Inc. (NASDAQ:ACOR) has reported its Q3 financial results for the quarter ended September 30, 2020. The net revenue of INBRIJA® (levodopa inhalation powder) in the quarter was$5.8 million. On the other hand, AMPYRA® (dalfampridine) revenue was $27.3 million.
INBRIJA revenue up 24% QoQ
Ron Cohen, the CEO and President of the company stated that they are delighted with the 24% QoQ increase in net sales of INBRIJA. This is despite the challenges the second wave of the coronavirus pandemic has posed. Cohen said that they are pleased with the continued increase in INBRIJA coverage in the third quarter, with around 96% of the commercially-insured patients able to access it. The CEO said that in addition to the exceptional performance of AMPYRA, the company also received a $15 million milestone payment from Biogen International GmBH for FAMPYRA. This has strengthened Acorda’s financial position as the company continues to work to cut operating expenses and monetize surplus capacity at the Chelsea facility to boost long-term shareholder value.
The milestone payment from Biogen is under the collaboration and license agreement between the company and Biogen. It is based on the ex-US FAMPYRA net sales exceeding 100 million for four consecutive quarters ending in Q3. Acorda will retain around $14 million of the milestone payment net of its obligations to a third party.
Acorda has $101 million in cash and short term investment.
At the end of the quarter, cash and cash equivalents, including restricted cash was $101 million with $37 of restricted cash in escrow linked to the 6% semi-annual interest of convertible note exchange finalized in December last year. If Acord is allowed as per the terms of the convertible notes and elects to settle interest due in stock, then free the escrowed restricted cash.
For the full year, the company anticipates AMPYRA net revenue to be around $85 million to $100 million, with operating costs expected to be between $170 and $180 million. This operating costs forecast is a non-GAAP estimate excluding restructuring costs as well as share-based compensation.