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Acorda (ACOR) Reports Narrower-than-Expected Loss in Q4

Zacks

Acorda Therapeutics, Inc. ACOR reported loss of 7 cents per share in the fourth quarter of 2016 (including the impact of stock-based compensation expenses), narrower than the Zacks Consensus Estimate of a loss of 18 cents.

Acorda’s shares have gained 26.4% so far this year, while the Zacks classified Medical-Biomedical and Genetics industry lost 4.5%.



However, including the impact of stock-based compensation expenses but excluding other non-recurring items, adjusted loss per share was 14 cents. The company had reported a gain of 11 cents per share in the year-ago quarter.

Excluding the impact of stock-based compensation expenses as well as other non-recurring items, fourth-quarter 2016 loss amounted to 5 cents per share. The year-ago earnings of the company had been 31 cents per share.

Total revenue for the quarter came in at $140.6 million, up 7.4%. Reported revenues missed the Zacks Consensus Estimate of $142 million by 1%.

Quarter in Detail

The majority of Acorda’s net product revenue was generated by Ampyra, which raked in sales of $132.3 million in the reported quarter. Revenues grew 8.4% year over year and 2.7% sequentially.

Ampyra is marketed in ex-U.S. markets by Biogen under the trade name Fampyra. Biogen pays royalties to Acorda on outside U.S. sales. Fampyra royalties were $2.7 million, down 18.2% from a year ago.

Zanaflex capsules and tablets (including authorized generic capsules) recorded revenues and royalties of $2.3 million compared with $3.3 million in the year-ago period.

Acorda’s research and development (R&D) expenses (including stock-based compensation expenses) shot up 22.3% year over year to $53.8 million due to increased investment in late-stage programs 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 up 11.3% to $59 million.

Pipeline Updates

On Feb 2017, the company announced positive phase III clinical data on CVT-301, 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 and the data is expected by the end of the first quarter of 2017.

Another candidate, CVT-427, is being evaluated in phase I special population studies for the treatment of acute migraine. The company plans to begin a phase II study by the end of 2017, upon successful completion of the study.

In Nov 2016, Acorda announced that it is discontinuing development of Ampyra for an expanded indication of post-stroke walking difficulties (PSWD). The decision was based on an interim analysis of a clinical study, MILESTONE, which failed to show sufficient efficacy to support further development of the drug.

2016 Results

Full-year sales increased 5.9% year over year to $493.4 million. Sales missed the Zacks Consensus Estimate of $520.6 million.

The full-year loss of 47 cents per share was significantly narrower than Zacks Consensus Estimate of a loss of 88 cents. the company had posted earnings of 25 cents per share a year ago.

2017 Guidance

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

R&D expenses are expected in the range of $185–$195 million (excluding share-based compensation).

The company expects SG&A expenditure in the range of $195–$205 million, same as the 2016 guidance.

Acorda Therapeutics, Inc. Price, Consensus and EPS Surprise


Acorda Therapeutics, Inc. Price, Consensus and EPS Surprise | Acorda Therapeutics, Inc. Quote

Zacks Rank & Key Picks

Acorda currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Cellectis S.A. CLLS, Cytokinetics, Incorporated CYTK and Sunesis Pharmaceuticals, Inc. SNSS. 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.

Cellectis’s loss estimates narrowed from $2.33 to $1.80 for 2016 and from $2.94 to $1.69 for 2017 over the last 60 days. The company posted a positive surprise in three of the four trailing quarters with an average beat of 111.20%.

Cytokinetics’ loss estimates narrowed from 12 cents to 3 cents for 2016 and from $1.67 to 42 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 102.93%.

Sunesis’ loss estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 0.54%.

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