Prompted by the adverse AMPYRA patent ruling, Acorda Therapeutics (NASDAQ:ACOR) announces a restructuring plan that will enable it to focus its resources on two late-stage programs: CVT-301 and tozadenant.
The initiative includes the elimination of 20% of its headcount, expected to save ~$21M in annualized expenses. The majority of the cuts will be completed this month. It will book ~$8M in pre-tax charges this quarter for severance and other costs.
The company expects to be cash flow positive this year. Its quick asset balance was ~$159M at the end of 2016. It expects to have sufficient resources to fund operations through the commercial launch of CVT-301 (NDA to be filed this quarter) and Phase 3 data for tozadenant.
CEO Ron Cohen, M.D. says, “The cost reductions resulting from this restructuring will enable Acorda to continue to advance our two valuable late-stage programs for Parkinson’s disease, CVT-301 and tozadenant. Over the last several years, we have strategically diversified our portfolio, and we believe that CVT-301 and tozadenant can be a platform for significant future growth. We believe that the steps that we are taking will position Acorda to deliver long-term value for our shareholders.”
Management will provide updated financial guidance for 2017 during its Q1 conference call.
Previously: Court invalidates four Ampyra patents; Acorda plummets 24% (March 31)