Acorda Therapeutics Will Not Use Shares for December 2022 $6.2 Million Interest Payment on Secured Debt

Rhea-AI Summary

Acorda Therapeutics has announced it will not pay the $6.2 million interest due on December 1, 2022, using its common stock, as stipulated in its Convertible Senior Secured Notes Indenture. This decision allows the company to avoid diluting share value. Furthermore, the company is focused on marketing its neurological therapies, including INBRIJA for Parkinson’s disease and AMPYRA (dalfampridine) for multiple sclerosis. Continued uncertainties related to product sales and management retention present potential risks for investors.

Positive

• Avoiding dilution of shareholder value by not using common stock for interest payments.

Negative

• Continued reliance on sales of AMPYRA and INBRIJA amidst increasing competition and patent expiration.
• Risks associated with management retention and recruitment may affect operational stability.
• Potential adverse effects due to the ongoing COVID-19 pandemic on business operations.

PEARL RIVER, N.Y.--(BUSINESS WIRE)-- Acorda Therapeutics, Inc. (Nasdaq: ACOR) today announced that it will not use its common stock to make the approximately $6.2 million interest payment due on December 1, 2022, as provided for under its Convertible Senior Secured Notes Indenture.

Under the terms of the agreement with bondholders, Acorda may elect to pay interest in cash or shares of the Company’s common stock. Not paying in shares of common stock will ensure that there will be no dilution to shareholders.

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, including the potential delisting of our common stock from the Nasdaq Global Select Market and actions that we may take, such as a reverse stock split, in order to attempt to maintain such listing; 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/20221018005332/en/

Tierney Saccavino

(917) 783-0251

tsaccavino@acorda.com

Source: Acorda Therapeutics

FAQ

What is Acorda Therapeutics' recent announcement regarding interest payments?

Acorda Therapeutics announced it will not use common stock to make a $6.2 million interest payment due on December 1, 2022, thus avoiding dilution of shareholder value.

How does Acorda Therapeutics' decision impact shareholders?

The decision to pay interest in cash instead of common stock protects shareholders from dilution.

What are the risks highlighted in Acorda Therapeutics' press release?

The risks include reliance on sales from AMPYRA and INBRIJA, management retention challenges, and potential impacts from the COVID-19 pandemic.

What therapies does Acorda Therapeutics develop?

Acorda develops therapies for neurological disorders, including INBRIJA for Parkinson's disease and AMPYRA for multiple sclerosis.