Acorda Therapeutics Announces Passage of Reverse Stock Split Proposal at its Special Meeting of Stockholders

Rhea-AI Summary

Acorda Therapeutics, Inc. (Nasdaq: ACOR) reported that its shareholders approved a reverse stock split at a ratio of nearly 2.5 to 1 during a Special Meeting. This strategic move aims to prevent potential delisting from Nasdaq, as noted by CEO Ron Cohen. He expressed gratitude for shareholder support and emphasized the company's recent arbitration award and disciplined financial management, positioning Acorda to execute a robust long-term business plan.

Positive

• Shareholder approval of reverse stock split helps prevent delisting from Nasdaq.
• Recent arbitration award strengthens the company's financial position.

Negative

• Risks associated with the successful marketing of AMPYRA and INBRIJA.
• Dependency on third-party manufacturers for commercial supply.
• Potential adverse effects from future studies and competition from generics.

 

PEARL RIVER, N.Y.--(BUSINESS WIRE)-- Acorda Therapeutics, Inc. (Nasdaq: ACOR) today announced that the Company’s stockholders approved the Reverse Stock Split proposal at its reconvened Special Meeting of Stockholders.

“We are grateful to our shareholders who supported this proposal at a ratio of almost two and a half to one. Authorizing our board to implement a reverse stock split is an important tool, if needed, to ensure that we do not become delisted by Nasdaq,” said Ron Cohen, M.D., President and CEO of Acorda Therapeutics. “We recently shared a detailed, long-term business plan to increase the value of the Company. As a result of the Company’s recent arbitration award and rigorous fiscal discipline, we are well-capitalized to execute that plan. Our ability to avoid delisting will ensure that we have the runway to do so.”

About Acorda Therapeutics

Acorda Therapeutics develops therapies to restore function and improve the lives of people with neurological disorders. INBRIJA^® is approved for intermittent treatment of OFF episodes in adults with Parkinson’s disease treated with carbidopa/levodopa. INBRIJA is not to be used by patients who take or have taken a nonselective monoamine oxidase inhibitor such as phenelzine or tranylcypromine within the last two weeks. INBRIJA utilizes Acorda’s innovative ARCUS^® pulmonary delivery system, a technology platform designed to deliver medication through inhalation. Acorda also markets the branded AMPYRA^® (dalfampridine) Extended Release Tablets, 10 mg.

Forward-Looking Statements

This press release includes forward-looking statements. All statements, other than statements of historical facts, regarding management's expectations, beliefs, goals, plans or prospects should be considered forward-looking. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including: we may not be able to successfully market AMPYRA, INBRIJA or any other products under development; the COVID-19 pandemic, including related restrictions on in-person interactions and travel, and the potential for illness, quarantines and vaccine mandates affecting our management, employees or consultants or those that work for other companies we rely upon, could have a material adverse effect on our business operations or product sales; our ability to attract and retain key management and other personnel, or maintain access to expert advisors; our ability to raise additional funds to finance our operations, repay outstanding indebtedness or satisfy other obligations, and our ability to control our costs or reduce planned expenditures; risks associated with the trading of our common stock; risks related to the successful implementation of our business plan, including the accuracy of its key assumptions; risks related to our corporate restructurings, including our ability to outsource certain operations, realize expected cost savings and maintain the workforce needed for continued operations; risks associated with complex, regulated manufacturing processes for pharmaceuticals, which could affect whether we have sufficient commercial supply of INBRIJA or AMPYRA to meet market demand; our reliance on third-party manufacturers for the timely production of commercial supplies of INBRIJA and AMPYRA; third-party payers (including governmental agencies) may not reimburse for the use of INBRIJA or AMPYRA at acceptable rates or at all and may impose restrictive prior authorization requirements that limit or block prescriptions; reliance on collaborators and distributors to commercialize INBRIJA and AMPYRA outside the U.S.; our ability to satisfy our obligations to distributors and collaboration partners outside the U.S. relating to commercialization and supply of INBRIJA and AMPYRA; competition for INBRIJA and AMPYRA, including increasing competition and accompanying loss of revenues in the U.S. from generic versions of AMPYRA (dalfampridine) following our loss of patent exclusivity; the ability to realize the benefits anticipated from acquisitions because, among other reasons, acquired development programs are generally subject to all the risks inherent in the drug development process and our knowledge of the risks specifically relevant to acquired programs generally improves over time; the risk of unfavorable results from future studies of INBRIJA (levodopa inhalation powder) or from other research and development programs, or any other acquired or in-licensed programs; the occurrence of adverse safety events with our products; the outcome (by judgment or settlement) and costs of legal, administrative or regulatory proceedings, investigations or inspections, including, without limitation, collective, representative or class-action litigation; failure to protect our intellectual property, to defend against the intellectual property claims of others or to obtain third-party intellectual property licenses needed for the commercialization of our products; and failure to comply with regulatory requirements could result in adverse action by regulatory agencies.

These and other risks are described in greater detail in our filings with the Securities and Exchange Commission. We may not actually achieve the goals or plans described in our forward-looking statements, and investors should not place undue reliance on these statements. Forward-looking statements made in this press release are made only as of the date hereof, and we disclaim any intent or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221111005323/en/

Tierney Saccavino

(917) 783-0251

tsaccavino@acorda.com 

Source: Acorda Therapeutics

FAQ

What is Acorda Therapeutics' stock symbol?

Acorda Therapeutics trades under the stock symbol ACOR on NASDAQ.

Why did Acorda Therapeutics approve a reverse stock split?

The reverse stock split was approved to help prevent potential delisting from Nasdaq.

What are the implications of the recent arbitration award for Acorda?

The arbitration award positively impacts Acorda’s financial position, enabling execution of their long-term business plan.

What is the ratio for Acorda Therapeutics' reverse stock split?

The approved reverse stock split ratio is nearly 2.5 to 1.