Acorda Therapeutics (ACORQ) 4 Aug 202020 Q2 Earnings call transcript

Welcome to Acorda Therapeutics Second Quarter 2020 Financial and Business Update. At this time all participants are in a listen-only mode. There will be a question-and-answer session to follow. Please be advised that this call is being taped at the company's request. I will now introduce your host for today's call, Tierney Saccavino, Executive Vice President, Corporate Communications at Acorda. ahead. go Please

afternoon, Good Thank everyone. you.

are Before we to to. presentation in I you we our which our will now call Ron me contain let our you forward-looking over refer filings, found CEO, remind will be statements. that can Cohen. which the begin, Detailed to and public, pass SEC encourage disclosures Ron?

are was were well afternoon, Starting projections. patients revenue continues with second and co-pay trials quarter well pay net eligible. as internal with for as mitigation, a to these, sales, AMPYRA Thanks, as free $XX.X AMPYRA. everyone. those Physicians And Tierney. to are who consistent express Good our continuing quarter July million. brand as offer the and to to loyalty patients

the as symptoms, neurologist’s COVID-XX inhaled and sales the is visits in request new middle OFF INBRIJA, known to second of of INBRIJA significantly levodopa. improving in of half INBRIJA offices of reminder, standard XX% about the forms impacted beginning periods gold needed. prescription beginning indicated Parkinson's a for return also decreased is is the INBRIJA PRFs March, by symptoms March. and for therapy as as drop the INBRIJA address Levodopa quarter, or to to Moving

Our patients increased have progressively teams communications and and rebound adapted and late rapidly then. April, and every to with INBRIJA to prescribers virtual platforms since in PRFs began month

are expected prescriptions be prescription the the The can by quarter, X.X because range needed as in encouraged rebound that can last in net begun We each year. in of INBRIJA QX the net see half true up additional sales month the in most from doughnut cartons, to prescriptions since rebates over new about in effect size, XXXX. five again, were have to yield increased grow paid was XX% in the day, of We that We QX to tends increased to INBRIJA programs initial In vary from over these higher up INBRIJA Medicare We to imposed Several XX% million. and and is we I in month year, of an to The incurred of prescription prescriptions calendar are progressively a cartons QX including increased to Dispense period, the five quarter - one sales by by of first impact a The average used improved then, in year. compared began occurs XXXX. closer to COVID-XX. believe implemented qX addition, on despite since patients a two XX% also X% to hole impacted than the from challenges results. the QX. sales. now be have over marked COVID late number over likely challenges, the despite that lower. Medicare times of also carton total is July. the dispensed up April cartons about to earlier cartons mentioned QX the demand, highest of That INBRIJA rebates depending patient. beginning which this year $X.X X% increase in which QX metrics rebates rest believe to various first indicator

since a prescription improvement that X% in to of was the conversion by during over launch. increased highest requests rate XX% also to And cartons dispensed July level second XX%. The material filled XX% increased prescriptions to an and June average in from the quarter addition, QX In XXXX.

training with those patients day other INBRIJA. that INBRIJA providing who months. have willingness to to care have additional XXXX were XX% from since on been and see average, Feedback use persistency inhaler use improved patient patients second at still quarter, indicating been physicians of the in over least providers the XX now has and on prescribers health we've pleased therapy among in high physicians other every launch. who growth X% has about outcomes had INBRIJA also prescribed We and We at

in we've focusing the to drive And patient they INBRIJA, these challenges access by to we've to and on their to are the of growth and discuss So the also INBRIJA, slides. as XXXX, experience. areas in to We'll coming more I'll prescriber to presented to in COVID-XX. how detail expand been and more three been with about color patients talk provide the accelerate optimize doctors adapting

COVID-XX. regard with So to first

quickly moved they and held teams providers educational events we the physicians offices quarter, XX second disorder digital the They to these adapted top programs. virtual with to environment. neurologists. In also communicated with programs, in-person movement programs speaking planned other physicians XXX attended About Our to virtual virtually.

More social with ran on people A were national groups. in-person XXXX also We programs, almost XX making for limited recently, are distancing, All developed to returned team sales rigorous these office field equipment. wearing personal with protective our following Parkinson's. reaching has advocacy basis. number in partnership visits guidelines a of programs personnel

So by demand we we'd would going about of awareness of of discussed professionals. launch end last XX% By forward. quarter major healthcare achieved focus the XXXX, INBRIJA be that a the driving patient

prescription were their two to of the INBRIJA Our about research asked likely indicated time. that doctors a receive patients about who thirds

learning the in XXX viewers XX banner included campaign display digital artificial on videos, XX% of almost sophisticated impressions million In YouTube engines. through video. watched impressions QX and XX those channels. delivered impressions on a million of machine These ads and entire intelligence based through we video launched programmatic QX, million multiple we approximately and So

in these taken, consumer background disease. patient that value in COVID-XX. in information. as the visits to interest to mind people more the XXX,XXX known specifically believe contributed of against impressions bear website, in downloading the we discussion and July, the that These even were videos or the Parkinson's to to increase XX,XXX viewing registering guide, And a doctor this over INBRIJA resulted such high programs with Now with in actions receive prescriptions quarter

of that we boxes. result and become proactively to INBRIJA. helpful impact a provided received with also getting of more to better new in good that chat in marker that address We've now We're patients out INBRIJA come patients physicians these XXX to hearing these a noted the than of from the who hints now process the the train a previously about a also had emailed further. our experiences last it positive patients materials, for modified Ensuring hearing as provide back QX in letter have programs, And the been guide who who we is one brochure on a factor. of key to from a easier patient on that findings. call, and are learned developed video mailing training use And And prescription. and both a it. we're we helpful the their these that educators initial prescribers kits. easier, providing year. all prescription as reach We quarter, those also have is date, a in with just the to we having And was of XXXX, to initial experience progressively capability training enhance video medication. nurse onto second hints inhalation their the has patients success of these much added for patients to instructional we received prescribe As samples starter and needed We've the therapy of and discontinued had middle a

the in softening XX%. Medicare During of both few XX% also plans months. to QX, increased our from without last commercial We've seen the lives we authorization prior covered enforcement and a criteria across medical exception of commercial

Some offs of become indication future. COVID don't may these more that we will in this restrictive have the be related, any prior

that access covered to INBRIJA have lives in We XX% without exception. have continue Medicare to of medical

a the cases reimbursement are from can from in Medicare We've significant to the prescription number been PRFs, when compliant now to there's get course, step they see of prescriptions. access, willing in patient are lives filled forms efforts, most of take to medication the the to progressively However, pleased physicians necessary and improved request hub to and their are on INBRIJA, supporting and teams decrease access next rates blocked a conversion a gain that fashion. been actual our in

QX, in compared to a in XX% prescription XX% QX in XX% and to of PRFs was conversion XXXX. mentioned filled average I As rate the

for to our million. moving So year, which in the This financials second find cash slide the quarter of you'll our addressed $XXX.X second in detail key quarter cash, outlines restricted equivalents, XXXX We cash financial performance. ended investments and with release. press

end and received This we today. million to us allowed back the our tax previously amount, we not tax XXXX to prior amount the cash CARES quarter $XX.X balance Act, reported, resulted under is NOL's we're refund in in included in a $XX.X July, that As which carry refund. reporting this years million

imposed adapted metrics and saw progress through by summary, COVID-XX. And challenges fronts in have which in to multiple continued So qX, teams our INBRIJA we significant July. across the for

which regard, Our as actively and AMPYRA the for reduce this strengthening and costs to in And still could of for we've questions. and on working cost for priorities medication using it our that are community our excess valuable to continues now drive our goods. monetize our to the and INBRIJA the to We're and value further one reviewed, expenses balance accelerate now XXXX capacity is shareholders, managing important is that I'll of call facility, to long-term top manufacturing strategies all just growth in sheet. our initiatives of open to to INBRIJA continue for - the key support generate cash offset now. and Chelsea an structure MS

comes Instructions] Michael question from [Operator Your you. Jefferies. Yee Thank first with

open. is line Your

and environment observing balance the know Hey, into guess Appreciate is Two a to much. and out bit And options COVID going about how in Ron, that you growth how about have. be of you those, think of so talk the and dynamics, as XXXX? the options? QX, we're it. thanks just sheet What great. then Can how then talk the of key the increases other And just One little to the you the step-ups versus of in of question? then how in that second as steady looking points how are much August? is debt with current exactly coming of in just maybe are for I you're kind you Can kind is that’s question. you the And convertible, about show questions. QX presumably, about going you're due frame each outstanding update. question thinking would demand is sort a Thanks that, to shape what

Okay. Thanks, Mike.

So out dynamics of regard the coming COVID. first, to with

time know, parts generally have, have April, been parts that speaking, characterize, given the same with of it's a other you country So, out much of in up. difficult gotten although the started control, March, flaring back country at major that bit to the issues the more

fortunately, So to those just trends stabilizing. be seem now

was XX% So offices, know, And not what to the in the reach future. we have really phase hopefully track. offices, development. neurologists March, in a offices April, telemedicine. that we've decline, was the going people up But that, that progressive we're seen that least They've that. big lot seen physician's stunning shock terminal in seeing what the opening in too you is of we March, to and more person, a at adapted a the is distant

have so And conditions. patients and physicians both seeing adapted we're the to generally, the that the

be and is be parts through as month-over-month. country least bigger a I'd which in were to measure I said, the X% say know, months few June, the pleased setback have that next You we excellent real as actually slightly for different know, with speculating. could I in even on can as July, just of only just increase was What couple You that compared there at an cartons, because issues? the July of is, demand, I dispense metrics, was true really mentioned some

year But we to certainly we entire that as much the as normal. population ago, certainly normal, cannot knew where see six the now, or we conditions can months back, we and go. has predict are going we're not to right So but to getting patient the closer and track optimistic, medical largely a that's adapted something establishment it cautiously far as to

Okay…

the just the of June everyone, at convertible exchanged all that way debt, of of is our for exchanged We remaining June. of end - by for XX% will, worth XXXX. With due due due at that XXXX. now we which or convert was end of regard end if due to reminder debt still debt that of you the that of is at stub, million is The $XX new was the

top I are We various can detail give tell it on our with are of But our that. and advisors certainly working on addressing ways is you advisors, mind I external you now. of working right any options. we can't

I refinance - explain could can it's the pay could important, be just stub you because in stock? think versus either I it Can is for million, But it which think think you or you I matter don't that cash, current $XX probably you but just that it to because clear likely, position… Ron, does cash exchange

Yeah.

know, longer are ways it address you And broadly you main is three terms a one would and convertible another another generic stock, do in is is outlined debt, just on well, it for So one to you you exchange this right. pay just that you what and it, new you the an be right of pay speaking, in period. cash, one

convertible due. those debt that's can coming So are people ways all address that

Okay, thank you.

Your with comes from Securities. Chico next question Laura Wedbush

open. line Your is

for Chico. Shields Kenneth is This question. the taking for on Thanks Laura

around another Ongentys Neurocrine they'll the any treatment be And quarter? see this INBRIJA's starting to how follow Ron, commentary you up. a adjunct uptake, be So, specifically, interested of I have launching we'd introduction in indicates

Neurocrine’s You're about specifically speaking a drug?

Yes.

Okay.

far Okay, aware, only right periods. I'm now there so as are two OFF on treatment market on-demand as for of the drugs

time has which there's is come medication talking The long form day the needle a of apomorphine. various you're intended not it's added a the during That medication current is the on. amount doing. to is then them APOKYN, the we're of under which of is versus competitive off of what been is chronic levodopa. a that That is which spends reduce patient has that around time, current issues, patient. needle. umbrella, the least treatments different specifically the is overall broadly One regimen of chronic to about - it's not That to that And INBRIJA, which a

intended part do of taking In require XX% as fact, chronic be to which Parkinson's you have of But an carbidopa patients adjunct drug. under one any - more to to as you pretty many than medication is be INBRIJA much have levodopa patients take. it, Parkinson's regimen,

and the or three Some different in And of drug. absorbs variable, their two, before during is, gut to to whatever taking do highly supposed the Parkinson's shown with effort INBRIJA, chronic meant you're with in is fact many it's times the the with day. the people them way own to our alleviate action stops INBRIJA. take that or as we've the daily shown mechanisms four drugs next of or whatever is, actually regimen we your PK scheduled studies, has the of that working it patient, whereas fails an that are time those it reemerge medication It's onset with during inhaled symptoms an XX when form, for absorbing The have the day it as soon night, to be Parkinson's that your occurs works. minutes a reliable poorly regimen drug. symptoms

an the to as So that and drugs of them an gives or what intervene those going symptoms they're it bring feel the needed existing wearing period. to OFF on patient to off it kick drug does of scheduled they is opportunity next the when opportunity daily their until they back the going into a intervention own doses that are them their take on is regular hopefully, gives address in. spot It

So we see that different It's as don't competitive. category. a

is net sales really And time it's impressing likely said That to two the what takes, know, I a It Now, in doctors and market coming for That that you offer that rising another companies, raising for the three about as them And tide, talk for believe. intended is delivered would positive, two we need a expect a patients believe that OFF minutes, and needed drug that it we educating all to apomorphine. them. periods the you film have September. is be use. under is because tongue. there, to teams, the believe use a as now out I'll in we actually on understand in marketing absorbed two we long needed is there with And tongue. it's address or case under forces be we've and of that will two is a about boats,

very Okay, helpful. you. I cash thank That's guess, question runway. one on Then,

$XXX current the about cash, we given cash Thank this at should of million, indicated includes runway trajectories, think restricted $XX about INBRIJA had how You you. million roughly the AMPYRA and which cash stage? equivalents revenue in

I'll add I include know, to hasten mentioned. of that you Yeah, we do those that that not numbers $XX.X million tax the rebate just

you reduce are now You is on the we that. said know, already million have that, right I what which year working on of publicly, I we can't comment can to tell to $XXX - have we're and that expenses that specifically million be projecting $XXX to we like possible cash point, soon cash we expenses where positive. further. neutral crossover have go product are as me, as excuse then sales is, that would cash or to that goal and to is expenses would And the the that revenue flow

on and working drying working are additional in plant. of spray monetizing real we initiatives actively capacity on So terms very at I of for one manufacturing in we're right the that mentioned that INBRIJA time now our manufacturing

Okay. Thanks, Ron.

Your Wainwright. Selvaraju Ram with from comes H.C. next question

line open. is Your

Thanks for provide off my if requirements additional to much could driving that any what I and of pandemic, is evidence on is the to simply Ron, anything… related the us so if you taking know questions. not prior seeing that are wanted you is with color relaxation just COVID-XX just there

it your Ram, out cut sentence. sorry, in just briefly first I'm

- you repeat sorry it. ask again? you to you Could could I'm that So to repeat

Sure.

the So what prior was off. I about asking was

just I COVID-XX some if is relaxation not factors that driving any you're So that you of that you're that mentioned seeing related are And seeing development? wondering offs. prior was

speculate. only can hard it's to we know, You very say,

of the the we they is appears from been than know to easier value of be linings get higher we paying expected get prior around we easier to hearing don't they're physicians indicates is that been fact, you on on rebates talked silver through of there because It's the Medicare that relaxation, patients about think that And that been it we're pocket out which - that half indicates one easier to access. do were repeatedly than really for we patients. therapy. the to know, we it's year, of expected country placing the the So costs, in the get offs, the have Medicare sure. first see actually in that the more What Medicare

has Okay. resumed. activities? And that that there's then evolved think you risk Or do quo? way with over those might months, several re-imposed be respect the you has indicated given activity you status the that become the Do any think past to now to been promotional face face the in COVID-XX that upcoming on the weeks, that US, that, restrictions crisis basically

imminent We no plans no to right? grapevine and are there we that's say, we we've those again. heard indication can up indication, have seen through tighten I any mean, not the all seen have that

just of normal, been easy indication and they're But has clear of to it that. that getting is sort happen, from to an and path is tightening we but the Now the to don't new is of same can say have that going But don't been relaxed don't circles, be mostly that everyone's story - widespread that course, now, the strong could to it what know, know, that the back to an our in again, it's going have we impression COVID. relaxation you up used the now you months we wide six not has know. due Medicare and

of to potentially what be order what Okay. would revenue parameters, you that? a tell to given resume, you conditions there to need you do in when might position INBRIJA set guidance, Can for like in us be

to with confidence variables our enough introduced can want decision we stability Well, there's that. the on that by and the they were are the and run backslide, projections all going make don't We particularly that need regard forward. that that I marketplace with variables to that some COVID, to unlikely to feel in were front

few mentioned, we out more a think over old, months the But out once lines come little We're it's months. what few are been likely need able we've we to the a the sense need need do what only I what accomplish are as the get be metrics new, a trend. we're crisis, those yeah, that - see encouraged it's I very we of We of also picture. by the we last encouraged to time So the here. know by likely trend be, to we quite as to and variables to of COVID are we're,

don't So be know that. think. few data I over the more don't will we next some I and more able when to coming know. The months, in bottom But line do need I we time would is

Thank you.

[Operator Instructions] with Kasimov next Your question from comes Cory JPMorgan.

Your line open. is

for Turner taking my you for on thank is Corey. question. This Hey,

just do of versus prior a block Or lives what's quick off I I ones. then was criteria? from the current outreach? much couple Just just commercial curious the was of softening do key curious, Medicare how mix the decrease Medicare And you insurance?

I'm sorry, how the do much - much did how blocks what? does

outreach the come versus in of and with what's providers then know, you and or just Medicare key - payers Medicare did block or the insurance? reduction with and much lives criteria versus mix off from work of of How your softening commercial some prior

look, that we most know there can were Yeah, more it say that we is than for decipher to science what to be a sure responsible? policy was - art What an is able changes. it's

offs don't burden that have yeah, at the prior insurers reduced I policy might I - term the softening, of were So, I if the changes of - used know use the think but there prior made burden actual although I the offs. that

order and that, go in they policies. need back old reinstate change would to and they So go back need would to to reinstate -

XX, in changes see between somewhere you commercial, to don't respect we XX, And move was Medicare XX, versus now, commercial. right reason to we toward the primarily Medicare had know, XX, we're a that XX But with place. about then this that. So policy was XX,

no further are there this at And time. questions

the - can dense. response bit softening because question just Okay. to be me more policy a of changes let it little and the the on And me or PAs let be about question precise

And a insurers. was being blocked So, at getting Part access in that changes Those change. specifically, were people D. from Medicare the policy saw on policy a we reduction

little see companies The also so lowered just policy insurance prior softening drug. the bit enforcing the the lowering the did you can't due to just that complete PAs One not a a off, they PAs were different. had is a We Those it's block, of where of to was of enforcement degree the get changes. previously.

that physician burden reduced to access on the the drug. also and the So who the give wants patient prescribe

a the So it's parts two really same said way. And you are there coin of in no more operator? questions,

have Atkins We another the Company. It queue. do in and Cowen with question from is Kenneth

Your line is open.

guys. question. for Hi, Thanks taking my

that there of You magnitude idea than the higher those to Medicare how much be would on just be And or QX mostly during felt rebates indicated expected impacts the willing might have to quantify of were you we better HX? of HX, sales, were a tailwind QX? that in

a year external I this. where was March, group end an can highly we first again, you challenging, said, several of on launched because regarded that entire work haven't I you experience, as dollars. of February beginning it's the very a the especially it of in tell through hundred with But And we of launch, year gotten you last year. even thousand very very, know, that,

for the and So resetting everyone's challenging, hole D their Med Part in doughnut their resetting coverage with very initial January. period insurance it's year particularly when and

what was we higher first higher got know, actual significantly charge actually you the quarter, government first the for estimated it the than second or we, we from had quarter. we in, It a much in quarter. when charge allocated the for So came the

experience get get finely launched the and So closer quarter. those more which we tuned project expect second we being over charge to on what gain more that accurately. we will AMPYRA, much the we took time, additional closer when Again, is then we able and in a as happened

Got it.

Okay, that's helpful. Thank you.

are this are there And we no the questions those further at time. all have questions. And Instructions] [Operator

thank updating you in. great Okay. week. Have you all tuning the rest your for forward We thank in Well, And a to you. next of quarter. look

call. today's This concludes conference

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