Acorda Therapeutics Reports Fourth Quarter and Full Year 2012 Financial Results

Wed Feb 13, 2013 6:00am EST

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* AMPYRA® (dalfampridine) Fourth Quarter Net Revenue of $72.7 Million; Full Year
2012 Net Revenue of $266.1 Million 
* Combined Fourth Quarter Zanaflex® Franchise and ex-U.S. FAMPYRA® Royalty
Revenue of $6.5 Million; Full Year Combined Revenue of $30.6 Million 
* Full Year 2013 Guidance for AMPYRA Net Revenue of $285-$315 Million 
* Full Year 2013 Guidance for Combined Zanaflex Franchise and ex-U.S. FAMPYRA
Royalty and License Revenue of $25 Million 
* Full Year 2013 Guidance for SG&A Expense of $170-$180 Million, Excluding
Share-Based Compensation 
* Full Year 2013 Guidance for R&D Expense of $60-$70 Million, Excluding
Share-Based Compensation

ARDSLEY, N.Y.--(Business Wire)--
Acorda Therapeutics, Inc. (Nasdaq: ACOR) today announced its financial results
for the fourth quarter and full year ended December 31, 2012. 

"We are pleased with the performance of AMPYRA in 2012, and excited about the
franchise`s potential to expand in future years. AMPYRA sales grew approximately
26% in 2012 over 2011, and we expect sales to continue to increase in 2013. In
addition, results from our life cycle management programs in post-stroke
deficits and cerebral palsy are projected to read out in the second quarter of
2013," said Ron Cohen, M.D., Acorda Therapeutics` President and CEO. 

"We believe we have one of the most interesting neurology pipelines in the
industry. Pending additional clinical and manufacturing data, we plan to submit
a New Drug Application to the FDA for Diazepam Nasal Spray in 2013. We also
anticipate having three additional clinical stage programs by mid-year. The
continued growth of AMPYRA, coupled with near-term pipeline milestones, has
created the potential for meaningful growth in shareholder value." 

FINANCIAL RESULTS

The Company reported GAAP net income of $133.0 million for the quarter ended
December 31, 2012, or $3.27 per diluted EPS, including share-based compensation
charges totaling $6.1 million and a $132.7 million non-recurring tax benefit.
For the full year 2012, the Company reported GAAP net income of $155.0 million,
or $3.84 per diluted EPS, including share-based compensation charges totaling
$21.4 million and a $132.7 million non-recurring tax benefit. GAAP net income in
the same quarter of 2011 was $12.7 million, or $0.32 per diluted EPS, including
share-based compensation charges totaling $5.5 million, and $30.6 million, or
$0.76 per diluted EPS, including share-based compensation charges totaling $19.3
million for the full year 2011. 

Non-GAAP net income, excluding the non-recurring tax benefit, share-based
compensation charges and payments in connection with the acquisition of
Neuronex, Inc., for the quarter ended December 31, 2012 was $9.8 million, or
$0.24 per diluted EPS, and $50.3 million, or $1.25 per diluted EPS for the full
year 2012. Non-GAAP net income in the same quarter of 2011 was $18.2 million or
$0.45 per diluted EPS. Non-GAAP net income for full year 2011, before
share-based compensation charges and other adjustments, was $45.1 million or
$1.13 per diluted EPS. 

AMPYRA® (dalfampridine) Extended Release Tablets, 10 mg net revenue - For the
quarter ended December 31, 2012, the Company reported AMPYRA net revenue of
$72.7 million, compared to $57.2 million in net revenue for the same quarter in
2011. For the year ended December 31, 2012, the Company reported AMPYRA net
revenue of $266.1 million, compared to $210.5 million in net revenue in 2011.
AMPYRA revenue is recognized following shipment of the product from the
Company`s distribution facility to its network of specialty pharmacies. 

ZANAFLEX CAPSULES® (tizanidine hydrochloride), ZANAFLEX® (tizanidine
hydrochloride) tablets and authorized generic capsules net revenue and royalties
- For the quarter ended December 31, 2012, the Company reported combined net
revenue from ZANAFLEX CAPSULES and ZANAFLEX tablets sales of $1.6 million;
revenue from the sale of authorized generic tizanidine hydrochloride capsules to
Actavis, Inc. totaled $1.1 million and royalties from Actavis for the sale of
authorized generic tizanidine hydrochloride capsules were $2.5 million, for
combined total net revenue of $5.2 million. Combined net revenue from ZANAFLEX
CAPSULES and ZANAFLEX tablets sales were $11.8 million for the same quarter in
2011. The decrease is due to the launch of generic versions of ZANAFLEX CAPSULES
during the first quarter of 2012. 

For the full year ended December 31, 2012, the Company reported combined net
revenue from ZANAFLEX CAPSULES and ZANAFLEX tablets sales of $13.2 million;
revenue from the sale of authorized generic tizanidine hydrochloride capsules to
Actavis, Inc. totaled $3.1 million and royalties from Actavis for the sale of
authorized generic tizanidine hydrochloride capsules were $7.2 million, for
combined total net revenue of $23.5 million. Combined net revenue from ZANAFLEX
CAPSULES and ZANAFLEX tablets sales were $45.8 million for the full year 2011.
The decrease is due to the launch of generic versions of ZANAFLEX CAPSULES
during the first quarter of 2012. 

ZANAFLEX revenue is recognized using a deferred revenue recognition model,
meaning ZANAFLEX CAPSULES and ZANAFLEX tablets shipments to wholesalers are
recorded as deferred revenue and only recognized as revenue when end-user
prescriptions of ZANAFLEX CAPSULES and ZANAFLEX tablets are reported. Authorized
generic product sold to Actavis is recorded as sales when shipped. 

FAMPYRA® (prolonged-release fampridine tablets) royalties - For the quarter
ended December 31, 2012, the Company reported FAMPYRA royalties from sales
outside of the U.S. of $1.3 million, compared to $1.3 million for the same
quarter in 2011. For the full year 2012, the Company reported FAMPYRA royalties
from sales outside of the U.S. of $7.1 million, compared to $1.9 million in
2011. 

Cost of sales for the quarter ended December 31, 2012 were $16.2 million,
compared to $13.4 million for the same quarter in 2011. Included in cost of
sales for the quarter ended December 31, 2012 was $1.1 million in cost of
authorized generic tizanidine hydrochloride capsules sold to Actavis. Cost of
sales for the full year 2012 were $57.0 million, compared to $64.2 million for
the full year 2011. The decrease in cost of sales was primarily due to the $14.1
million in accounting adjustments in 2011 related to the Apotex patent
infringement trial court decision. 

Research and development (R&D) expenses for the quarter ended December 31, 2012
were $18.2 million, including $1.4 million of share-based compensation, compared
to $10.3 million including $1.7 million of share-based compensation for the same
quarter in 2011. R&D expenses for the full year 2012 were $53.9 million,
including $5.1 million of share-based compensation, compared to $42.1 million
including $5.8 million of share-based compensation for the full year 2011. R&D
expenses for the full year ended December 31, 2012 included costs related to the
Neuronex agreement, AMPYRA post-marketing studies and life cycle management
programs, including AMPYRA proof-of-concept cerebral palsy and post-stroke
deficits studies, and the development of the Company`s pipeline products,
including expenses for Glial Growth Factor 2 (GGF2). 

Sales, general and administrative (SG&A) expenses for the quarter ended December
31, 2012 were $45.6 million, including $4.6 million of share-based compensation,
compared to $35.7 million including $3.8 million of share-based compensation for
the same quarter in 2011. SG&A expenses for the full year 2012 were $168.7
million, including $16.3 million of share-based compensation, compared to $148.5
million including $13.5 million of share-based compensation for the full year
2011. 

Recognition of tax benefit and reversal of valuation allowance - During the
quarter ended December 31, 2012, as a result of its sustained profitability and
forecasts for future taxable earnings, and in accordance with GAAP, the Company
released the valuation allowance on all of its deferred tax assets. The
valuation release resulted in the recognition of a non-recurring tax benefit of
$132.7 million, which is reflected in the Company`s GAAP results for the quarter
ended December 31, 2012. In order to provide comparable information about its
earnings, the Company reported the reversal of this non-recurring tax benefit
for non-GAAP purposes. 

For 2012, the Company was cash flow positive and closed the year in a strong
financial position with cash, cash equivalents and short-term and long-term
investments of $333.2 million, an increase of $14.5 million over the third
quarter of 2012 and $37.3 million over our 2011 ending cash, cash equivalents
and short-term and long-term investments. 

GUIDANCE FOR 2013

* The following guidance does not include potential expenditures related to the
acquisition of new products or other business development activities. 
* The Company expects AMPYRA 2013 full year net revenue of $285-$315 million. 
* In 2013, the Company expects Zanaflex franchise and ex-U.S. FAMPYRA revenue of
$25 million, which includes sales of branded Zanaflex products, royalties from
ex-U.S. FAMPYRA and authorized generic tizanidine hydrochloride capsules sales,
and $9.1 million in amortized licensing revenue from the $110 million payment
the Company received from Biogen Idec in 2009 for FAMPYRA ex-U.S. development
and commercialization rights. 
* SG&A expenses for the full year 2013 are expected to be $170-$180 million,
excluding share-based compensation. SG&A will be primarily driven by commercial
and administrative costs related to AMPYRA. The majority of the increase in SG&A
in 2013 over 2012 is related to Diazepam Nasal Spray expenses. 
* R&D expenses for the full year 2013 are expected to be $60-$70 million,
excluding share-based compensation. R&D expenses in 2013 related to AMPYRA
include proof-of-concept studies in cerebral palsy and post-stroke deficits, and
sponsorship of investigator-initiated studies. Additional expenses include
clinical trials for AC105 and rHIgM22, continued development of Diazepam Nasal
Spray and GGF2, as well as ongoing preclinical studies. A substantial portion of
the increase in R&D in 2013 over 2012 is related to Diazepam Nasal Spray
expenses. 
* The Company expects to be cash flow positive in 2013.

AMPYRA UPDATE

* Between its launch in March 2010 and the end of 2012, more than 73,000 people
with multiple sclerosis have tried AMPYRA. 
* The Company reported top-line data from a post-marketing commitment study
evaluating a 5 mg dose of dalfampridine-ER to improve walking in people with MS.
The study failed to confirm efficacy of the 5 mg dose.

PIPELINE UPDATE

* Following the December 2012 acquisition of Neuronex, Inc., the Company began
preparing a New Drug Application (NDA) for Diazepam Nasal Spray. Pending
additional clinical and manufacturing data, the Company plans to submit the NDA
to the U.S. Food and Drug Administration (FDA) in 2013, with potential approval
and commercial launch in 2014. 
* The Company initiated proof-of-concept clinical studies exploring the use of
AMPYRA in patients with post-stroke deficits and cerebral palsy. Results from
both of these trials are expected in the second quarter of 2013. 
* The GGF2 Phase 1 clinical trial in heart failure was completed. This was a
dose-escalating trial designed to test the maximum tolerated single dose. The
Company plans to present findings in a platform presentation at this year`s
American College of Cardiology (ACC) annual meeting in March, and will discuss
the data with the FDA before proceeding to a multiple dose study. 
* The Company submitted the Phase 2 clinical trial protocol for AC105 for acute
treatment of spinal cord injury to its IND on file with the FDA, and expects to
initiate the trial in the first half of 2013. 
* The Department of Defense awarded the Company a contract for $2.67 million to
support the Phase 2 clinical trial of AC105. 
* The Company opened an Investigational New Drug (IND) application for rHIgM22,
a remyelinating antibody for the treatment of multiple sclerosis and plans to
begin a Phase 1 clinical trial in the first half of 2013.

CORPORATE UPDATE

* The Company completed its acquisition of Neuronex, Inc., a privately held
company developing Diazepam Nasal Spray. 
* For the second year in a row, the Company was ranked in the top 10 of the Best
Companies to Work for in New York in the large company category, based on an
independent survey identifying the best places of employment in the State of New
York. Acorda was ranked seventh among large companies, defined as employing more
than 250 people. This ranking reflected feedback from employees about company
culture, benefits and overall job satisfaction. 
* The Company named Jane Wasman as President, International. In this role, Ms.
Wasman will lead the Company`s efforts to identify and launch in-licensing and
commercial opportunities outside the United States. She will also be responsible
for managing Acorda`s collaboration with Biogen Idec (Nasdaq: BIIB) in their
international development and commercialization of FAMPYRA.

This press release includes financial results prepared in accordance with
accounting principles generally accepted in the United States (GAAP), and also
certain historical and forward-looking non-GAAP financial measures. In
particular, Acorda has provided income, adjusted to exclude share-based
compensation charges, the payments associated with Neuronex in 2012, the tax
benefit relating to the reduction of the deferred tax asset valuation allowance
in 2012, the net milestone revenue relating to Biogen Idec`s receipt of
conditional approval from the European Commission for FAMPYRA in 2011, the
ZANAFLEX CAPSULES adjustments due to the Apotex patent infringement trial court
decision in 2011 and the AC105 license fee in 2011. Also, Acorda has provided
projected amounts of research and development (R&D) and sales, general, and
administrative (SG&A) expenses excluding share-based compensation charges and
future expenditures related to the potential acquisition of Neuronex and
diazepam nasal spray. These non-GAAP financial measures are not an alternative
for financial measures prepared in accordance with GAAP. However, we believe the
presentation of these non-GAAP financial measures when viewed in conjunction
with our GAAP results, provide investors with a more meaningful understanding of
our ongoing and projected operating performance because they exclude non-cash
charges that are substantially dependent on changes in the market price of our
common stock and expenses and income that do not arise from the ordinary course
of our business. We believe these non-GAAP financial measures help indicate
underlying trends in the company`s business and are important in comparing
current results with prior period results and understanding projected operating
performance. Also, management uses these non-GAAP financial measures to
establish budgets and operational goals, and to manage the company`s business
and to evaluate its performance. A reconciliation of the historical non-GAAP
financial results presented in this release to our GAAP financial results is
included in the attached financial statements. 

WEBCAST AND CONFERENCE CALL

Ron Cohen, President and Chief Executive Officer, and David Lawrence, Chief
Financial Officer,will host a conference call today at 8:30 a.m. ET to review
the Company`s fourth quarter and full year 2012 results. 

To participate in the conference call, please dial 866-356-3095 (domestic) or
617-597-5391 (international) and reference the access code 66159419. The
presentation will be available via a live webcast on the Investor section of
www.acorda.com. 

A replay of the call will be available from 10:30 a.m. ET on February 13, 2013
until midnight on March 13, 2013. To access the replay, please dial 888-286-8010
(domestic) or 617-801-6888 (international) and reference the access code
55654711. The archived webcast will be available for 30 days in the Investor
Relations section of the Acorda website at www.acorda.com. 

Important New Safety Information

AMPYRA is contraindicated in patients with a history of hypersensitivity to
Ampyra or 4-aminopyridine. 

Important Safety Information

AMPYRA is contraindicated in patients with a history of seizures, or with
moderate or severe renal impairment (CrCl ≤ 50 mL/min), or history of
hypersensitivity to AMPYRA or 4-aminopyridine. 

AMPYRA can cause seizures; the risk of seizures increases with increasing AMPYRA
doses. Discontinue AMPYRA and do not restart if seizure occurs. 

AMPYRA should not be taken with other forms of 4-aminopyridine (4-AP,
fampridine), since the active ingredient is the same. 

AMPYRA can cause anaphylaxis and severe allergic reactions. Signs and symptoms
have included respiratory compromise, urticaria, and angioedema of the throat or
tongue. If an anaphylactic or other serious allergic reaction occurs, AMPYRA
should be discontinued and not restarted. 

The risk of seizures in patients with mild renal impairment (CrCl 51-80 mL/min)
is unknown, but AMPYRA plasma levels in these patients may approach those seen
at a dose of 15 mg twice daily, a dose that may be associated with an increased
risk of seizures; estimated CrCl should be known before initiating treatment
with AMPYRA. 

The most common adverse events (incidence greater-than or equal to 2% and at a
rate greater than the placebo rate) for AMPYRA in MS patients were urinary tract
infection, insomnia, dizziness, headache, nausea, asthenia, back pain, balance
disorder, multiple sclerosis relapse, paresthesia, nasopharyngitis,
constipation, dyspepsia, and pharyngolaryngeal pain. 

For full U.S. Prescribing Information and Medication Guide for AMPYRA, please
visit: www.AMPYRA.com. 

About AMPYRA (dalfampridine)

AMPYRA is a potassium channel blocker approved as a treatment to improve walking
in patients with multiple sclerosis (MS). This was demonstrated by an increase
in walking speed. AMPYRA, which was previously referred to as Fampridine-SR, is
an extended release tablet formulation of dalfampridine (4-aminopyridine, 4-AP),
and is known as prolonged-, modified, or sustained-release fampridine (FAMPYRA®)
in some countries outside the United States (U.S). 

In laboratory studies, dalfampridine extended release tablets has been found to
improve impulse conduction in nerve fibers in which the insulating layer, called
myelin, has been damaged. AMPYRA is being developed and commercialized in the
U.S. by Acorda Therapeutics; FAMPYRA is being developed and commercialized by
Biogen Idec in markets outside the U.S. based on a licensing agreement with
Acorda. AMPYRA and FAMPRYA are manufactured globally by Alkermes Pharma Ireland
Limited, a subsidiary of Alkermes plc, based on a supply agreement with Acorda. 

AMPYRA is available by prescription in the United States. For more information
about AMPYRA, including patient assistance and co-pay programs, healthcare
professionals and people with MS can contact AMPYRA Patient Support Services at
888-881-1918. AMPYRA Patient Support Services is available Monday through
Friday, from 8:00 a.m. to 8:00 p.m. Eastern Time. 

For full U.S. Prescribing Information and Medication Guide, please visit:
www.AMPYRA.com. 

About Acorda Therapeutics

Acorda Therapeutics is a biotechnology company focused on developing therapies
that restore function and improve the lives of people with MS, spinal cord
injury and other neurological conditions. 

Acorda markets AMPYRA® (dalfampridine) Extended Release Tablets, 10 mg, in the
United States as a treatment to improve walking in patients with multiple
sclerosis (MS). This was demonstrated by an improvement in walking speed. AMPYRA
is marketed outside the United States as FAMPYRA® (prolonged-release fampridine
tablets) by Biogen Idec under a licensing agreement from Acorda. AMPYRA and
FAMPYRA are manufactured under license from Alkermes Pharma Ireland Limited. 

The Company also markets ZANAFLEX CAPSULES® (tizanidine hydrochloride) and
Zanaflex tablets, a short-acting drug for the management of spasticity. Acorda
also receives sales royalties on tizanidine hydrochloride capsules, an
authorized generic version of ZANAFLEX CAPSULES, distributed by Actavis, Inc.
under its agreement with Acorda. 

Acorda has an industry-leading pipeline of novel neurological therapies. The
Company is developing Diazepam Nasal Spray for treatment of certain epileptic
seizures. It is also studying AMPYRA to improve a range of functional
impairments caused by MS, as well as its potential for use in other neurological
conditions, including cerebral palsy and post-stroke deficits. In addition,
Acorda is developing clinical stage compounds AC105 for acute treatment of
spinal cord injury, GGF2 for treatment of heart failure and rHIgM22, a
remyelinating monoclonal antibody, for the treatment of MS. GGF2 is also being
investigated in preclinical studies as a treatment for neurological conditions
such as stroke and spinal cord injury. Chondroitinase, an enzyme that encourages
nerve plasticity in spinal cord injury, is in preclinical development. 

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. 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 our ability to successfully market and sell Ampyra in the
U.S.; third party payers (including governmental agencies) may not reimburse for
the use of Ampyra or our other products at acceptable rates or at all and may
impose restrictive prior authorization requirements that limit or block
prescriptions; the risk of unfavorable results from future studies of Ampyra or
from our other research and development programs, including Diazepam Nasal Spray
or any other acquired or in-licensed programs; we may not be able to complete
development of, obtain regulatory approval for, or successfully market Diazepam
Nasal Spray or other products under development; the occurrence of adverse
safety events with our products; delays in obtaining or failure to obtain
regulatory approval of or to successfully market Fampyra outside of the U.S. and
our dependence on our collaboration partner Biogen Idec in connection therewith;
competition, including the impact of generic competition on Zanaflex Capsules
revenues; 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; failure to
comply with regulatory requirements could result in adverse action by regulatory
agencies; and the ability to obtain additional financing to support our
operations. These and other risks are described in greater detail in Acorda
Therapeutics' filings with the Securities & Exchange Commission. Acorda may not
actually achieve the goals or plans described in its forward-looking statements,
and investors should not place undue reliance on these statements.
Forward-looking statements made in this release are made only as of the date
hereof, and Acorda disclaims any intent or obligation to update any
forward-looking statements as a result of developments occurring after the date
of this release. 

Financial Statements

 Acorda Therapeutics, Inc.                                                                                   
 
Condensed Consolidated Balance Sheet Data                                                                  
 
(in thousands)                                                                                             
 
(Unaudited)                                                                                                
                                                                                                             
                                                                   December 31,            December 31,      
                                                                   
2012                   
2011             
                                                                                         
                                                                                                             
 Assets                                                                                                      
 Cash, cash equivalents, short-term and long-term investments      $        333,188        $        295,907  
 Trade receivable, net                                                      26,327                  22,828   
 Other current assets                                                       16,863                  13,825   
 Finished goods inventory                                                   20,957                  28,382   
 Property and equipment, net                                                16,706                  3,858    
 Deferred tax asset                                                         136,727                 -        
 Intangible assets, net                                                     9,319                   8,769    
 Other assets                                                               5,245                   5,919    
 Total assets                                                      $        565,332        $        379,488  
                                                                                                             
 Liabilities and stockholders' equity                                                                        
 Accounts payable, accrued expenses and other liabilities          $        58,261         $        45,542   
 Deferred product revenue                                                   29,275                  30,599   
 Current portion of deferred license revenue                                9,057                   9,057    
 Current portion of notes payable                                           1,144                   1,144    
 Current portion of revenue interest liability                              1,134                   1,001    
 Long-term liabilities                                                      10,415                  6,266    
 Non-current portion of revenue interest liability                          1,440                   2,928    
 Non-current portion of deferred license revenue                            68,685                  77,742   
 Stockholders' equity                                                       385,921                 205,209  
 Total liabilities and stockholders' equity                        $        565,332        $        379,488  
                                                                                                             


 Acorda Therapeutics, Inc.                                                                                                                       
 
Consolidated Statements of Operations                                                                                                          
 
(in thousands, except per share amounts)                                                                                                       
 
(Unaudited)                                                                                                                                    
                                                                                                                                                 
                                                      Three Months Ended                              Twelve Months Ended                        
                                                      December 31,                                    December 31,                               
                                                      2012                    2011                    2012                    2011               
                                                                                                                                                 
 Revenues:                                                                                                                                       
 Net product revenues                                 $    75,390             $    69,049             $    282,381            $    256,271       
 Royalty revenues                                          3,819                   1,331                   14,376                  1,909         
 Milestone revenue                                         -                       -                       -                       25,000        
 License revenue                                           2,264                   2,264                   9,057                   9,057         
 Total revenues                                            81,473                  72,644                  305,814                 292,237       
                                                                                                                                                 
 Costs and expenses:                                                                                                                             
 Cost of sales                                             16,205                  13,434                  57,007                  64,183        
 Cost of milestone and license revenue                     159                     159                     634                     2,384         
 Research and development                                  18,191                  10,304                  53,881                  42,108        
 Selling, general and administrative                       45,594                  35,720                  168,690                 148,508       
 Total operating expenses                                  80,149                  59,617                  280,212                 257,183       
                                                                                                                                                 
 Operating income                                     $    1,324              $    13,027             $    25,602             $    35,054        
                                                                                                                                                 
 Other expense, net                                        (226     )              (85     )               (1,334   )              (3,036   )    
 Income before income taxes                                1,098                   12,942                  24,268                  32,018        
 Benefit from (provision for) income taxes                 131,875                 (248    )               130,690                 (1,413   )    
                                                                                                                                                 
 Net income                                           $    132,973            $    12,694             $    154,958            $    30,605        
                                                                                                                                                 
 Net income per common share - basic                  $    3.36               $    0.32               $    3.93               $    0.78          
 Net income per common share - diluted                $    3.27               $    0.32               $    3.84               $    0.76          
 Weighted average per common share - basic                 39,597                  39,178                  39,459                  39,000        
 Weighted average per common share - diluted               40,661                  40,152                  40,332                  40,064        
                                                                                                                                                 


 Acorda Therapeutics, Inc.                                                                                                                                                     
 
Non-GAAP Income and Income per Common Share Reconciliation                                                                                                                   
 
(in thousands, except per share amounts)                                                                                                                                     
 
(Unaudited)                                                                                                                                                                  
                                                                                                                                                                               
                                                               Three Months Ended                                        Twelve Months Ended                                   
                                                               December 31,                                              December 31,                                          
                                                               2012                               2011                   2012                               2011               
                                                                                                                                                                               
 GAAP net income                                               $    132,973                       $    12,694            $    154,958                       $    30,605        
 Pro forma adjustments:                                                                                                                                                        
 Neuronex payments included in R&D (Note 1)                         3,453                              -                      6,653                              -             
                                                                                                                                                                               
 Tax benefit adjustment (Note 2)                                    (132,743  )                        -                      (132,743  )                        -             
                                                                                                                                                                               
 Collaboration milestone revenue (Note 3)                           -                                  -                      -                                  (25,000  )    
                                                                                                                                                                               
 Cost of milestone revenue (Note 3)                                 -                                  -                      -                                  1,750         
                                                                                                                                                                               
 Zanaflex Capsule adjustments (Note 4)                              -                                  -                      -                                  15,477        
                                                                                                                                                                               
 License agreement expense in R&D (Note 5)                          -                                  -                      -                                  3,000         
                                                                                                                                                                               
 Share-based compensation expenses included in R&D                  1,440                              1,680                  5,122                              5,801         
 Share-based compensation expenses included in SG&A                 4,630                              3,777                  16,296                             13,502        
 Total share-based compensation expenses                            6,070                              5,457                  21,418                             19,303        
                                                                                                                                                                               
 Total pro forma adjustments                                        (123,220  )                        5,457                  (104,672  )                        14,530        
                                                                                                                                                                               
 Non-GAAP net income                                           $    9,753                         $    18,151            $    50,286                        $    45,135        
                                                                                                                                                                               
 Net income per common share - basic                           $    0.25                          $    0.46              $    1.27                          $    1.16          
 Net income per common share - diluted                         $    0.24                          $    0.45              $    1.25                          $    1.13          
 Weighted average per common share - basic                          39,597                             39,178                 39,459                             39,000        
 Weighted average per common share - diluted                        40,661                             40,152                 40,332                             40,064        
                                                                                                                                                                               


Note 1: $6,800 closing consideration for Neuronex in fourth quarter less net
assets acquired of $3,726 which were primarily the taxable amount of Neuronex
net operating loss carryforwards plus $2,000 upfront payment and $1,579 in R&D
payments. 

Note 2: Tax benefit recorded for reduction of deferred tax asset valuation
allowance in fourth quarter. 

Note 3: $25,000 milestone revenue relating to Biogen Idec receipt of conditional
approval from the European Commission for Fampyra in Q3 2011. Based on Acorda`s
worldwide license and supply agreement with Elan, Elan received 7% of this
milestone payment from Acorda during the same period which was recorded as cost
of milestone revenue. 

Note 4: Adjustments relating to Zanaflex Capsules due to Apotex patent
infringement trial court decision in Q3 2011. ($13,038 Intangible asset
impairment included in cost of sales, $1,020 commercial inventory reserve
included in cost of sales, $1,083 PRF put/call liability adjustment included in
SG&A, $336 sample inventory reserve included in SG&A). 

Note 5: $3,000 upfront expense related to licensed worldwide development and
commercialization rights to a proprietary magnesium formulation from Medtronic,
Inc. (AC105) included in R&D in 2011.

Acorda Therapeutics
Jeff Macdonald, 914-326-5232
jmacdonald@acorda.com

Copyright Business Wire 2013

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