Acorda Therapeutics (ACORQ) 9 Mar 232022 Q4 Earnings call transcript

Welcome to the Acorda Therapeutics Fourth Quarter and Year-End 2022 Financial and Business Update. [Operator Instructions] Please be advised that this call is being recorded at the company's request.

I will now introduce your host for today's call, Tierney Saccavino, at Acorda. Tierney, please go ahead.

Thank you, Emily, and good morning, everyone.

let statements. you begin, will our we forward-looking contain before me that remind presentation So can found refer disclosures and Detailed be we are filings, encourage public, which you to to filings. in those our SEC the the and we have call. analysts, written during from other they when questions then Q&A, take will first Today, calls will have our in that take investors we registered for

call Ron? pass the over now CEO, Cohen. to I'll Ron our

We of shareholder neutral financial XXXX, Tierney. successes, Good the Diving although our significantly The QX. everyone. and the flow XXXX. INBRIJA also achieved we was and for AMPYRA sales X particularly first business Thanks, performance. be an sales, for stream latter to flow right in, U.S. in surge. expenses lowered neutral believe impacted for quarter challenging related and trajectory we operating year a in our that strong cash or cash that guidance in value. operational morning, INBRIJA positive quarters the not cash financial unusually net to burn severely Omicron and of we We which expect the quarter were met we of all Despite increased delivered COVID

of of forward. reduction resulted plus up Biopas, plus in marked of $XXX,XXX $XX.X clinical Additional launch arbitration million that for with a Latin of AMPYRA commercialized our licensing going to in American Germany stage on award in $X an included in of in Asieris received products. million regulatory milestones to countries. asset, also to We upfront of INBRIJA an royalties goods our cost sales successes our agreement the closing the with and The INBRIJA Nepicastat commercialize X largest by Esteve Alkermes

XXXX We expect alone. in in to costs save million to $XX these million $XX

in our of goods addition, Finland cost renegotiated million forward. to a our agreements we obtained waiver reduce INBRIJA we expect for which in with of substantially $XX we Catalyst, loans. going And our And

And the June extension new we've bring INBRIJA February having And requirements, compliance year, Esteve a split. an so the in share avoiding launched stock reverse received NASDAQ back company's listing from into in just also that far has to in announced thus NASDAQ implement to to XXXX, Spain. price in XX, we with

So QX sales year moving net U.S. to were INBRIJA, decrease XXXX was a the and million. net XXXX. fourth full a INBRIJA. That sales XXXX million, for decrease were from over U.S. XX.X% quarter $X $XX X.X%

But this X quarter the next I'll increase a in and XXXX, the slides. first of over XXX% more detail discuss in

the the buy-in pattern quarter the of during the itself sales net launch. first year. resetting by pharmacies deductibles So steadily here then specialty as the and sales always QX since insurance increased you and result Overall, in each each a see Sales quarter year. of trend dip repeats

surge of XXXX in XXXX, surge However, QX QX that sales believe was the the in we the Omicron than occurred And of of COVID by prior primarily QX largest more this far and drop was to dropped the first launch. related end that through quarters far in that pandemic. the excessive

However, during year. recovered sales very the well

year. that were or prescriptions in XXX% in slide an XXXX outsized TRx, We of which I by this in ground noted, XX% greater then lost sales pattern over And next QX. and as similar a total much recovered QX dropped saw than QX the

most This of demand. see which is the true also you pattern. measure to dispensed accurate followed a similar here And cartons patients,

in a You XX% versus QX drop see drop XXXX. in But QX QX minimal in XXXX . versus XXXX XXXX QX XXXX a

again, year. ground progressively most the And lost we recovered during of that

period significantly last dispenses XXXX prescription to that period we're request for are and we're in significantly XXXX, of than similar running For January new year. forms the also February the first X And months comparable date. of ahead encouraged higher

the slide, this been we've will in as in XXXX. implementing, to these on believe ex we trends grow U.S. U.S. based as we brand On to continue new responses next that programs INBRIJA well encouraging the the and

Parkinson's guidance currently now market COVID. $XX taking for of who has the moving million opportunity $XX net we're on-demand could And X% currently patients and that treatments But that of treatment INBRIJA about people of million. with to are qualify market, that a XX% are U.S. the Parkinson's past than us physicians to fewer XXX,XXX any providing significant on-demand gives grow sales and of disease. particularly

review some been implementing. that programs to of we've Just the new

their impact people new far of Our partners professionals, INBRIJA OFF for people emotional Parkinson's both their something and so about care on learned from among experience is is health educating and that care care professionals market health lives with periods Parkinson's with of brand in campaign the on is who our we've focused this partners. the treat disease. Parkinson's This that care widely the important, missed is

many -- to grasp about don't illustration because of patients patients. just medical understand fully give lot of illustrations They their periods, there. a on impact a of but to you OFF an out the talk the we or they And of them don't couple aspects

stay activity, And be that's because If major it you to with for can isolating important say, activity, is that's consider exercise, an people very And their to Parkinson's social someone major disease. exercise. golf. let's active, whose it's social to be major their

on golfing all incapacitated not They these I'm outing came today. feeling time tea you period. symptoms the OFF And hole miserable. after and It OFF say, happening, Saturday time, a just became after They that heard and that without went back with couple hole, guys of times sudden, these of next hooking morning, say, go on XXth well." call And weren't of a slicing are but know every we've times, -- a what, as severe a X:XX." on entire they their "Hey, couple of Joe, of person the their and necessarily. on their "Hey, buddy's Their game to real the started the their couple embarrassing hands you started times shot. one they tremble Xth last wasn't of stories their me

because They now dealing the care it, to affects begin an embarrassing Whereas to way to have therapy an had isolate to moment, it's no what they have have dealing as they're add before they they're address they you again, afraid a that ability with and way they've but And of them well. and their in would disease. with on-demand because situations in themselves, happen if of going not can having terrible their it. and their see disease that issues partners in that OFF

where action be us she he to about that do she point afraid periodically salesperson, we go wife thinking in and where to address was example, up here's him Coast real impact patient her if trouble told it they might couldn't one at job into know having period with wife out used afraid patient of pilot. she got our little and give is if OFF time His a This was a it with INBRIJA. the her Guard on it. as as job you travel. and his of XX a OFF to to think to he leave can do the to So an happens requires have onset who's can alone And about and is a is as INBRIJA, be job. She you periods -- data that to have her was Afraid happens he see that to actually minutes. that it show because now got both anything she the go her

interest, care you'll extremely I making Parkinson's them their we information talked patients, QX to we Such them returning watching their have to with in website point, visitors as or lives. to think she that of look have partners a we with saw OFF I them physicians, his high-value find the is I physicians you about a results period. campaign. QX and from So relative how see as chair wife, by care lives patient encourage believe to give to downloading to I our how after find one will to health helps Take digital what and compelling. new this the some Jimmy brochure a imbrija.com. actually way, in encourage OFF patients XXX% you encouraging to him and just XXX% visitors heard Christie the back in that campaign actions at extent care out more and they about you compelling. more and their we and our go And his increase their increased an a and call get and control other well. will of video over as taking and professionals videos actions. before in the take all the need to We've a providers them smaller promotion registering And a or website increase

the Sales $XX million was full million. was million we quarter AMPYRA generics. said of year $XX.X to along that for were to million all and from consistent AMPYRA. to this XX.X% over Moving million, the decrease a QX time $XX $XX that XXXX net guidance will Recall with a fourth this XXXX. sales XXXX. decrease our relative over have were $XX in decline That

sales slide. quite to continue show generics you And leveling been and moderate. in the a has we of off decline versus next to However, expect that the it rate I'll bit,

of the we of XXXX, sales million. slope The XXXX. XXXX, decline net of in continues XXXX leveling flatten you XXXX between $XX and the end QX from here, AMPYRA a million So through beginning see and expect generic me, the excuse competition of -- is for sales of $XX to through there

stabilize branded note $XX trends XXXX, million really since that AMPYRA went encouraging for it generic will or something we XXX had in AMPYRA wrote slide, doctors XXXX. about on project over Next approximately based the X to a in at prescriptions and who next years year sales written these not higher

to you believe due and way is well, And we've ask maintaining yourself, brand. that the the might why performance we been

we we up the the calls period. we all, of of get we physician MS had embedded a we that and ensure were went continuing specialists no there's the lot our to exclusivity of out thought found loyalty word aware them they're longer on sales field And generic, once built many of that supporting we for to programs that various that patient increased to that it. we're support provide that we because brand, brand need First when

health free That or usually less than they're so first value a with no continue paying AMPYRA they paying our pocket the mitigation $XX gives professionals of we always care commercially continuing step more co-pay to are health support brand, months the which is insured month commercial X from providers hear the than generics. for both initial insurance care patients, to the program that that patients are provided and of that and that And for includes we've to out provide. patients

physician and covered to has remained turn us. provide to about call financials lives insurance. get AMPYRA continue can for reimbursement support. XX% who review we Mike of to going that, to through Access And also, with And Mike? with over Gesser our also CFO, high access the the I'm will it

Thank you, morning, Ron. Good everyone.

$XX.X reported sales, to million royalties, our $XXX,XXX $X.X addition of Neurelis million U.S. we Asieris In royalties to ex-U.S. the of INBRIJA for assets and FAMPYRA million clinical from Pharma revenue, we in licensed for them. $X.X

performance, achieved XXXX of announced XXXX sales Looking year $XX OpEx, development, is as approximately by is at OpEx. guidance and from financial we down the at adjusted and general the administration and beginning you and for as know, Adjusted million. our research AMPYRA the

year debt. We Award Finland was the the a ended by strong in Net and cash Alkermes impacted improvement extinguishment income the position. Biotie off of

$XX we and pure $XX expect U.S. XXXX, between U.S. million. and revenue million and $XX revenue million net For between $XX net a INBRIJA million

between million cash a and operating balance cash flow be neutral We year million $XXX $XX expect between $XX we ending and we adjusted for our better. million. on or achieving of And $XX the expect million to plan and net expenses

in in And found Additional guidance turn earnings over release. be guidance now I'll back financial the the can our call to Ron. long-term

Thanks, Mike.

also value post-COVID advantage closing priorities, out our new new deals environment launches existing programs roll reviewing build to we're ex-U.S. the in trajectory earlier in discussed of our deals, taking to continuing that continue while with U.S., I XXXX. At INBRIJA's shareholder in So and additional commercial countries. commercial the the first, accelerating

health and over the XXXX. in provide in For programs right deals of reductions support $X follows inform remains early Biopas, about $XX XXXX also, launches And already Latin the Mike, an other territories we to out in that partner And million, that MS of XXXX between believes important Maintaining a additional as our American that focus on deals also MS are made further expenses million product as negotiating we've for the we we'll begin just XXXX AMPYRA you reducing and providers example, they'll discussing continue XXXX. additional or and operating heard total between we're behalf world various now. the million to by to from $XX roll in patients. that care

And for your call creating to flow cash as with expect attention, heard, positive important open collaborations inhale the to we in neutral technology. evaluate thank therapies and and our that, ARCUS we're And for be with for XXXX you will you to questions. continuing Operator? we we'll new

a We on Boobalan HC question have line Pachaiyappan Wainwright. the from with

is Can hear you This Boobalan. okay? me

Yes, we can.

in dialing Ram for I'm Selvaraju.

for So you AMPYRA are firstly, costs much specifically? on how spending commercial

You that? break to But Mike, we out do I believe want take know don't numbers. what, those you

numbers don't we out. break those Well,

a we the sales discuss we So how to probably need to addressing craft similar and -- we marketing to we this in direct answered that as that. want through would do support be force. I provide AMPYRA our past, to sales But say, question will a

a marketing AMPYRA. provide kinds of digital of and lot way the normal that and support We advertising for

AMPYRA So to our us it we and -- returns the the pay specifically, attention find for is Ron that that as well product, positively. respond to sales we through more effort, It forgotten saying, marketing not and and INBRIJA. doctors and rather a appears approaches not is was

Okay. And INBRIJA U.S. of be how in pricing does to between And the you expect and peak secondly, do territories? sales the European Europe? what compare in

Yes.

we European guidance not are sales. So giving again, currently for

depending. a and then on different depends of a all, scheme country get rolled lot and pricing First has that which out countries when each of

currently we we what's ongoing can give takes a their the it not get in on in would we I general, comfortable our guidance at our own say of them. on market that of to going enough really accurate this on projections can the don't that partners how assessment depends in feel just so give be This we're and market. experience given that. while can here, we So that a point, to and sense project that

do $XX I'm the on to in not said and get can, I'm while get when we of want million slide INBRIJA is U.S. I but $XX misspoke we range, presenting correction that million when million, make I thinking correct and was still where a By sure it. way, $XX one projections, the million for the I'm the XXXX we range the I U.S. that. sales point told will $XX a obviously right to if If XXXX. point do to I to we

your So I and want just corrected questions. I to make that, sure let me return to

cutting then XXXX? All cost over right. thirdly, control and you expense the which control And XXXX think how would in of required any cost scenario operating further we remainder be in see do should about and

want Mike, to please. do you take that

Yes.

significantly continuing reduce our operating So to expenses. we are

expenses, other you'll driving guidance back growing discussed. point not in years. have decreases And not December, that see the our like 'XX have operating that a We we rather support expenses in for do outlying that just on tight feel go operating down at guidance plan you -- we that the if we and guidance revenue on given long-term future. as as control grows we look have provided we're that necessarily as to we planning can significant are on we a our our the in significantly sales

certain exchanging what and do we opportunity and but -- look at you other. is cost we are that But cost for you don't every see, departments

in beneficial company. other that there more is are certain beneficial departments be to but more might departments, spend used need to reductions are to So and that activities the net fund more funding those --

convertible most refinancing to instrument desirable kind would What debt? And facility? plans existing replace us. And of what consider final your are one then you Okay. the your debt question for from

Yes.

address we of majority at say who the we the point we our What majority can specifics the obviously So but can with this we give own say, to we debt have and majority the great need can't is meaning it. in of communication stay great you we great bondholders, debt. that what

it's debt debt. to the X over Fortunately, able constructive or are XX% maybe have accounting regarding so the who so concentrated. for are There we're conversations holders of fairly

are team leadership the and the we, real time. And Board in

We decision let we to we're with have ways debt the know. hopefully, bondholders. going various are collaboration in with a to we that, or on decisions go in everyone continuing of when dealing will way which the with evaluate And certainly

turn call I further will Tierney now the back Saccavino, to for remarks.

Thanks, Emily.

So we to written in do registered and have several who've as now. investors questions going they them read I'm

your announce stock the XX The how will is for $X question company days, goes back compliance price in is, you first and with listing if that? NASDAQ above rules,

event. material that the yes, be out would certainly would would that press material think, And would very publicly certainly would announce all put we we I as -- Well, release. a we with likely, events, it in

Okay.

Next question.

about confident your you're leaders stock. to purchasing business If or company directors see Do we'd have expect Acorda insiders to plans long-term plan, so? do

on speculate that, our here note to heard from I in we're and the purchased shareholders have it and members, concerns team. is that say personally all say I would sensitive can our on that including can't it, team sensitive leadership I stock. and have I'm So we but to past, me, these Board the company I have the what leadership the to

higher prices This was before. obviously at

So any advance about advisement, I proactive announcements hope can't all you we can taking we are but under or that. make that appreciate.

buy you the especially that if the is that value other time we're The months, of on, and working kinds you teams given or get had be company. how possession likely to initiatives, possessing say, build that the that it's let's highly company can as things Boards that of that in all And given sell material information. the nonpublic very are any look at and in at thing can the by working may appreciate, X at often of been sense and any you the just the last all understand to stock engaging limits leadership information constrained we we time, as that of in announced we back we previously can a

it. we're Again, sensitive So to

We have before. done it

before, we bought large stock I will that have of stock have and before. all our our consideration. bought We amounts take of into

Okay.

your you with interest Will continue cash. to question. payments Next make debt

a worth of things well, noting. -- So couple

more we payment it upcoming payment, that's the the have all, option pay to even the First bondholders. in with stock June there's only the at where under agreement just of one left

only the about Board be in So payments one due. what pay that before determination makes that typically cash. the would to even are going where there option it do be we're would not The an to shortly

So I you. interest, don't we I you to into pay the if the in preference tell involved. that that believe are dilution as best our shareholders have a cash But for to answer very specific ourselves all sensitive are in in issues that is can taking we is consideration. And general, factors

that think nearly currently if we close the gives I noting enough also shares you not worth it's pay price. shares comfort this June payment to stock do some to it in anything have current at

will get of it. unless are But announce sense hopefully, our that there some that answer. otherwise. obviously, view closer, that as we'll generally is other give the overall And to you speaking, factors preferable So cash we dictate compelling it paying is

Okay.

time It stock above the plan shareholders that $X Next depressed. maybe address are is What a to or this? keep your stock question. price Acorda the every and to a goes order appears in shareholder selling

have for stock say you, to we of is immediately articulated activity regulations find look that we like or So and that concerned the we to the about authorities. see can illegal closely that to you activity the we that unethical been extent outside that sufficient or untoward we have relevant would report the patterns. the evidence activity type -- to any monitor pattern just I for

Okay.

of current you your Alkermes. Next additional think is being already able legal paid royalties likelihood petition? What to question of regarding the get clawbacks do with

Well, The we're ongoing comment on able litigation. not public. speculate to or is on filing

million. are court when stay filing owed for know, going that the our we that. if hearing, you an that hands to of additional tuned As so we That's $XX the believe be the we in have indicates please

we of growth? lack a with calendar still INBRIJA COVID last concerning question the robust not year, next more why over seeing are Our

of over of had calendar year. we first all, last So lack a have not COVID the

If the you had go back, we surge last in had fall. We another a summer. surge

still opened like into country, would offices particularly patients more where the by say there So mask. the the really hospitals all is a and it's which has approximately months and -- I our been less, up walk to way, doctors' the country the or physicians, lot extent requiring they're part an of X of today,

already feel, that and X indicating the everyone to quarters, it's it, to patterns moved there's So it. call we normal medical let's -- return of over opening the we're we not we in X What up been first that of last enough entirely is past have activity that like has behavior need. the kind and time opening the pandemic more for

where also moves this in this groundwork, turning to have of front today. to respects, get like not It's on the like in light is And It's it you prescriptions. past relaunching of we major a have burst almost to everyone you not a sudden, of switch. some understand do like them. just all then have And No.

You have get there. the to out campaign new

rapidly prescribers than The the at on cash ability has for patients to that co-pay implemented, The other the nicely of Medicare, the new afford this product cannot we less for and which very for example, ability their up point. most for buy co-pay been taken to by who e-prescribe for things very the have example.

you that the have all can place, programs in been of seen increase into we quarter. see, you, as we in third a programs reported to we've So fourth XXX% I digital putting the already visitors in quarter. back place new And the versus coming these put

actions when come high-value We've visitors seen they increase XXX% in over taking back.

And months year of already X that encouraging. the indicated, year. prescription I of last seen extremely versus higher we've significantly in is this activity all as So first

for in for it's I it of get And is it some for It's between between $XX to million but don't believe million wrong our again. projection given want taking is that $XX time. to we going take we've hold, this reflected and So INBRIJA that our the integration year year. just all of

of Spain. The next is, question in in launch delay there the was a INBRIJA

telegraphing Actually, in pleased schedule. timetable XXXX. right fact, based Spain for were we it launch in early to that in of year been on Esteve's much last No. No. on We've we that, expected was February. they that launched in And

that We early announce recently Spain. XXXX. when it, because it had announced it wait until they in was to as did qualifies it, think recently. which not announced we for to And Esteve I So we announce

the deliver Next on on long-term the financial question, is track outlined results to company last year?

I'll take this, Ron.

Yes, please, Mike.

Yes.

So release. is the included our guidance long-term in earnings

You'll Catalent the adjustments notice a in the AMPYRA only guidance that the it's for recently essentially to the restructuring long-term released item the December result INBRIJA made catalyst sales we've concluded. and we same the as and deal of other that we've is

So guidance will we in or continue monitor our as performance appropriate. and reiterate changes we to the closely, any guidance will

Thank you.

why question, are flow be cash you able neutral Next not to in XXXX?

this Ron, we this going question. get was to also, I'll do were one hoping please. I

talked we well like our described. that we're of AMPYRA. cash we and had the to revenue receiving That Omicron INBRIJA meet year. had revenue impact it significantly adversely anticipated or least the positive reductions ended as because therefore, the QX reason our we QX. cash as had year about we in as a were position getting we've had had far and for expenses neutral in That fourth in to we neutral that the We year position did impacted We operating talked or that XXXX. been As made the as meeting neutral. being flow revenue flow continuing us reiterate not cash cash guidance about in quarter about, for that not for just impacted be in feel the cash our reduction payments And flow for the talking guidance strong the rather aiming past, When are significant we've our for guidance it of the we flow at product. and we we operating the the quarter, the in sales real affected expenses for is

quarters good So QX. that we in given are the were feel immense for pretty with now been that we about where faced we describing X have we hold

Thank you, Mike.

And me with writing for that conversion updates time Okay. numbers and operations. of to about you would buyback like your I first, the would great it's congratulate no let regard the convertibles great for and the is, with debt. and question leave and more talk to shares work team the maybe The to management last are news a or the see shares doing. company

Well, thank for you the current feedback.

overall the year We early been excuse we've company, news -- the are indicated in announcements I we we milestones year, the in those year pleased as this do hit. promptly We last number to made a and update me what able this quite the announce with seeing we're that and and last performance whenever have of a material several months.

to aiming are We have more to year. this make

bondholders. respect are touch in with we to I earlier, bonds, mentioned with the As the

And to announce are a settled continuing we way debt. of different on, evaluate that addressing promptly. certainly we we ways that when to the are have We have going

Right. writing question. That end is the the of

back I'll you. over Ron, to turn it So

everyone, right. we've we're that, in next ones you. the for All joining to terms Well, been generating last Talk or and to our X time. aiming forward And after thanks, next what continue Thank we you, look of for Thank with us, months update. you positive doing news so the shareholder Tierney. and value.

you Update. Fourth Thank concludes XXXX your This Quarter Acorda Business participation. Financial Year and and for End Therapeutics