Q1 2023 Acorda Therapeutics Inc Earnings Call

About it and <unk> plans to seek marketing authorization in China as quickly as possible.

Now moving to <unk>.

In <unk> U S. Net revenue for the first quarter was $12 6 million, that's a 15% decline over Q1 2022.

And this shows in period sales performance from the beginning of generic competition in the fourth quarter of 2018, and you can see the slope of the decline is continuing to flatten.

Through 2020 to.

We're reiterating our guidance for 2023 net sales of between $65 million to $70 million and we project that sales will stabilize at approximately $60 million over the next several years.

We're continuing to execute on our strategy to maintain the Ampera Brett our field sales team is continuing to call on them as specialists to ensure that they're aware of the various support programs that were continuing to provide for the brand, but also we're continuing to hear from both the <unk>.

With care professionals of health care providers and patients who value the support that we've always provided and are continuing to provide for branded and Sierra.

Access also remains high Gran Tierra about 70% of covered lives and get access to it through insurance.

And now I'll turn the call over to our CFO by Guesser, who will review the financials.

Thank you Ron as Ron stated level.

Thank you Ron.

As Ron stated global Embrasure revenue was up significantly over Q1 2022.

Adjusted Opex, which is R&D and SG&A is down approximately $4 $7 million from Q1, 2022 and shows a quarters continuing efforts to align spending with revenue.

Cash balances are down from Q1, 'twenty, two and alignment with our expectations.

In addition to our U S revenue, we reported $526000 in a breach of our ex U S sales $2 $9 million and fan pier of royalties.

And $587000 in neurology royalties.

For 2023 as Ron mentioned, we are reiterating our financial guidance on our Brita as U S. Net revenues between $38 million to $42 million and then <unk> U S. Net revenue between $65 million to $70 million, we expect.

Adjusted operating expenses of between 93, and $103 million, we expect ending cash balance of between 43% and $47 million and we plan on achieving a net neutral cash flow or cash flow positive for the year.

And now I will turn the call back over to Ron.

Thanks, Mike.

Moving to an update on the board of Directors, Jeff Randall who has served on our board since 2006 and is currently chair of the audit Committee will be stepping down from the board in June at our annual shareholder meeting.

We are deeply grateful suggest.

His superb contributions to accord he has been terrific and we wish him the very best in the future.

We're also very pleased that Tom Burns, who is CFO of XOMA Corporation will stand for election to our quarters forward in June some has 25 years of finance and accounting experience in biotech and high Tech and we're delighted that he has accepted our invitation to serve on the board.

So in closing these are the core pillars on which we are building shareholder value first continuing to accelerate and breezes trajectory in the U S. Taking advantage of the new post COVID-19 environment, where the commercial programs that I discussed earlier, we're very.

Pleased with the large early response to our streaming commercial and the other programs that I mentioned.

Also looking to close ex U S partnership.

For additional territories as our existing deals continue to rollout commercial launches in the EU and Latin America and that China as I described earlier.

Second we're continuing to call on MFS healthcare providers to continue to educate them about the various programs, we provide to support and Sierra on behalf of Ms patients and thereby maintaining as much as possible with the <unk> franchise.

We're also reducing operating expenses as you heard from Mike we are reducing them further in 2023 or 2022 by between 9% and $19 million and we're aiming to be cash flow neutral to positive in 2023.

We're continuing to evaluate collaborations for creating important new inhaled therapies with ARCUS technology.

I will now open the call for your questions.

Thank you we will now pause back Karen if any pre submitted you've asked a question.

Thank you Terry.

Few questions that have been written and here's the first one I'm a shareholder and with all the great news about British a partnership from the ability of the company to pay that interest with cash how impressed that the share price is still so low even with a small outstanding share count.

Okay.

It's very difficult if not impossible to comment on why a stock price is where it is except in broad general terms, obviously, it's a big complex market with lots of factors. However, having said that we are.

In what I would say is an unusual position historically in our industry.

We are bringing in over $100 billion in revenue and yet the valuation does not remotely reflect that we believe that the overriding factor and again. This is this is a.

A personal view.

But the overriding factor is the convertible debt that is on our books and that is coming due in December of 2024 that needs to be addressed and that that that serves as a weight or an overhang on everything else that we're doing a lot of which has been very positive as you've heard.

We are as we've said before and ill just reiterate we are in regular touch with our bondholders.

Looking at end seriously considering various strategies for addressing that issue.

I'm not at Liberty good to go into any of them in detail here, but that is top of mind and we are working on that.

Very closely.

Thank you. The next question is it appears that a shareholder or shareholders are selling or shorting. The stock every time I'm quite about close to or above a dollar in order to keep the price depressed and what's your plan to address that.

Well.

That's in a way it's similar to the last question you know, there's there's very little to nothing that a company can do.

Directly to stop someone from selling its a free market people are free to buy and sell everyday if they want.

What we can do and what is in our hands is continuing to generate positive progress and positive news on the company as you saw what happened this week, when we announced the chance deal.

We've had several very positive developments over there I would say the last nine to 12 months, if you've been following us during that time and at some point you generate enough positive momentum that it overwhelms the people who are selling or are they just run out of ability to sell and maybe.

They leave room for for the people who want to buy the stock the same goes for short sellers right.

If you have people who are selling short that is their right to do but at some point if we're generating enough. Good progress that becomes a liability for that right because if the stock prices moving up they have to cover the shorts and then it becomes a.

A bit of an advantage.

For the company and its shareholders. So.

I guess my summary, there is.

It is a free market, we're doing what I think we need to do which is to keep making.

We're making progress growing and breeze, yet maintaining and Pierre.

Getting more ex U S partnerships on in breach of generating more occur.

Our current and future revenue that way and keeping with our fiscal discipline. So.

Well, we'll see.

We'll see how long people can sell at a dollar.

Okay. Thank you.

The next question is have you already addressed this a little bit but it does can you comment on any progress on the 2020 notes refinancing I just want to reiterate that.

I'm, sorry can you repeat that.

Sure can you comment on any progress on the 2024 notes refinancing.

Okay. So you.

You mean, the 2024 networks I think.

Yes.

So those are the notes that are currently due at the end of 2024, and we are actively exploring ways of addressing that and we are in regular touch with our bondholders.

Great. Thank you and here is the last question is from written and so far can you comment on the impact of the inflation reduction.

Inflation reduction at <unk>.

On a quarter do you anticipate.

Any.

Do you anticipate the removal of the donut hole that would benefit embraced itself.

So.

The IRA has a fair amount of complexity. So I can't go into all of it here obviously, the Medicare negotiation is one of those but as those of you who follow it no.

Initially, it's going to be limited to 10 of the higher selling drugs and then 25% and then more.

Each year over time.

We don't see that.

We don't currently anticipate that there will be a direct impact of that on us.

<unk>.

With regard to elimination of the donut hole.

That is potentially advantageous not to mention the fact that the.

<unk>.

So out of pocket for the year.

For patients co pays and so on.

Ultimately going to be limited to no more than $2000, a year, which is again much better for patients than the current system and obviously it makes it easier for them to get access to drugs through Medicare.

Now, while the donut hole will be eliminated currently buyer.

Biopharmaceutical companies are responsible for 70% of the expense of the drug in the donut hole.

New design.

It has shifted that goes away the donut hole goes away and we will take on 10% of the expense and the initial coverage phase and then for those patients who get to the catastrophic so called catastrophic coverage phase it becomes 20% and that's industry wide that's for all our biopharmaceutical draw.

<unk>.

Net net we believe it's going to be a positive in our case, but that's something that we're continuing to analyze as we go forward.

Thank you there are no more questions. So we can wrap it up.

Alright, thanks, very much for joining US everyone. We were very pleased with the quarter and we look forward to updating you next quarter.

This includes the quota therapeutics first quarter 2023 financial and business update. Thank you for your participation.

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