Third Quarter 2021 Results by ACOR
ACOR reported third-quarter 2021 results on 9th November 2021. The company released the INBRIJA net revenue of $7.8 million and AMPYRA net revenue of $20 million. Moreover, the research and development costs came out to be $1.9 million with sales, general, and administrative expenses around $29.6 million.
Furthermore, the GAAP net loss was approximately $27.1 million and the non-GAAP net loss was $15.9 million. Lastly, AMPYRA net revenue is expected to be $75 to $85 million, with operational expenditures of $130 to $140 million.
This quarter ACOR achieved great development. Despite the ongoing impact of the pandemic on the business, INBRIJA net sales increased by 34% in the first quarter of 2020.
The company is making great advancements on the largest business priorities, which include accelerating Inbrija’s sales trajectory, maintaining the Ampyra brand in the face of generic competition, commercializing Inbrija outside the United States. This will provide ACOR with a significant additional revenue stream and align the operating expenses to the revenue. By the end of 2022, the company wants to be cash flow positive on a consistent basis.
Agreement to Commercialize INBRIJA – What’s it all about?
On 9th November 2021, ACOR announced that it has signed a distribution and supply agreement with Esteve Pharmaceuticals in order to market INBRIJA. The company is excited to announce the second commercialization agreement with ESTEVE.
This will provide INBRIJA to the numerous Parkinson’s patients in Germany who might benefit from it. ESTEVE has a long history of commercializing medications for neurological and other diseases throughout Europe. ACOR is still in discussion with other firms about distributing INBRIJA in various European and international markets.
Corporate Structuring by ACOR – Was it necessary?
ACOR announced an organizational reorganization to save costs and better align operational expenses with revenue expectations on 9th September 2021. The Company is decreasing personnel by 15% as a result of the reorganization. Moreover, the majority of the employee reductions will occur immediately, with the remainder taking place in the first quarter of 2022.
Beginning in 2022, ACOR anticipates annualized cost savings of approximately $20 million. Lastly, through the first quarter of 2022, ACOR expects to incur approximately $3.0 million in pre-tax charges for severance.