Acorda (ACOR) Q1 Loss Wider Than Expected, Revenues Miss

Acorda Therapeutics, Inc. (NASDAQ:ACOR) reported loss of 25 cents per share in the first quarter of 2017 (including the impact of stock-based compensation expenses), wider than the Zacks Consensus Estimate of a loss of 16 cents. The company had reported a gain of 9 cents per share in the year-ago quarter.

Acorda’s shares lost more than 10% following its first-quarter earnings release. However, shares of the company have lost 17.3% so far this year, while the Zacks classified Medical-Biomedical and Genetics industry gained 4.8%.



Including the impact of stock-based compensation expenses as well as other non-recurring items, first-quarter loss amounted to 41 cents per share. The company had incurred a loss of 1 cent per share a year ago.

Total revenue came in at $119.4 million, up 3%. Revenues missed the Zacks Consensus Estimate of $126 million by 5.2%.

Quarter in Detail

The majority of Acorda’s net product revenue was generated by Ampyra, which raked in sales of $112 million in the reported quarter. Revenues grew 2% year over year but decreased 15.3% sequentially.

Ampyra is marketed in ex-U.S. markets by Biogen Inc. (NASDAQ:BIIB) under the trade name Fampyra. Biogen pays royalties to Acorda on outside U.S. sales. Fampyra royalties were $2.5 million, flat year over year.

Zanaflex capsules and tablets (including authorized generic capsules) recorded revenues and royalties of $1.7 million, up 41.6% from the year-ago period.

Acorda’s research and development (R&D) expenses (including stock-based compensation expenses) increased 4.3% year over year to $46.5 million due to increased investment in late-stage programs (INBRIJA or CVT-301 and tozadenant) as well as the addition of Biotie’s R&D expenses. Last September, Acorda acquired the remaining stake in Biotie, thereby completing its acquisition.

Selling, general and administrative (SG&A) expenses (including stock-based compensation expenses and Biotie transaction costs) were decreased 1% to $51.7 million.

Pipeline Updates

On Feb 2017, the company announced positive phase III clinical data on CVT-301 (INBRIJA), which is being evaluated for the treatment of Parkinson’s disease. Data from the studies showed a statistically significant improvement in motor function in patients treated with CVT-301. Moreover, the company is currently conducting two studies to assess the long-term safety of CVT-301. In March, the company announced results from the two studies. The data from the study are consistent with the previously reported data from phase IIb and phase III studies. The company is planning to submit a new drug application (NDA) to the FDA and marketing authorization application (MAA) to the EU by the end of 2017.

In Dec 2016, the company completed phase I special population studies evaluating another early-stage candidate, CVT-427, for the treatment of acute migraine. The company is presently evaluating the next steps for the program as CVT-427 will not advance into a phase II study by the end of 2017, as previously expected.

2017 Guidance

The company maintains its Ampyra net sales guidance in the range of $535–$545 million.

The company lowered its R&D expenses for 2017 and costa are now expected in the range of $160–$170 million (old guidance: $185–$195 million), excluding share-based compensation.

The company also lowered its SG&A expenditure in the range of $170–$180 million (old guidance: $195–$205 million), excluding share-based compensation.

Zacks Rank & Key Picks

Acorda currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Heska Corporation (NASDAQ:HSKA) and Galena Biopharma, Inc. (NASDAQ:GALE) . Each of these stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Heska’s earnings per share estimates increased from $1.53 to $1.65 for 2017 and from $1.80 to $2.01 for 2018, over the last 60 days. The company posted positive surprises in three of the four trailing quarters with an average beat of 291.54%.

Galena’s loss per share estimates narrowed from $2.03 to 58 cents for 2017, over the last 60 days. The company posted positive earnings surprises in two of the four trailing quarters with an average beat of 53.83%.

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