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Exploring Acorda Therapeutics’ Financial Performance

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Dec. 4 2020, Updated 10:53 a.m. ET

Top line

In fiscal 2017, Acorda Therapeutics (ACOR) generated total revenue of $588.2 million, compared with $519.6 million in fiscal 2016. This growth was attributable to higher Ampyra sales. The company incurred costs of sales of $135 million in fiscal 2017, compared with $107.4 million in fiscal 2016.

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Operating expenses

Acorda’s incurred R&D (research and development) expenses fell to $166.1 million in fiscal 2017 from $203.4 million in fiscal 2016, primarily due to Inbrija expenses falling by $21.8 million and Ampyra’s $13.6 million lifecycle management program.

The company’s SG&A (selling, general, and administrative) expenses fell from $235.4 million in fiscal 2016 to $181.6 million in fiscal 2017, primarily due to a $29 million reduction in legal and business development activities and a $6.1 million decrease in marketing and sales-related spending.

Acorda had asset impairment charges of $296.7 million in fiscal 2017. The company’s total operating expenses rose from $555.5 million in fiscal 2016 to $821.1 million in fiscal 2017, mainly due to asset impairment charges. Consequently, Acorda incurred an operating loss of $232.8 million in fiscal 2017, compared with an operating loss of $35.9 million in fiscal 2016.

Bottom line

Between fiscal 2016 and fiscal 2017, Acorda Therapeutics’s total interest and amortization of debt discount expenses rose to $18.6 million from $16.5 million and its net loss grew to $223.3 million from $34.6 million, translating into a net loss per share of $4.86 in fiscal 2017 and $0.76 in fiscal 2016. The company’s accumulated deficit rose to $455.1 million from $243.9 million. In the next part of this series, we’ll look at Acorda’s cash flow.

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