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Gross sales of Acorda Therapeutics' ZANAFLEX CAPSULES and tablets increase 9.1% to $58.3M in 2009

Published on February 23, 2010 at 6:45 AM · No Comments

Acorda Therapeutics, Inc. (Nasdaq: ACOR) today announced its financial results for the fourth quarter and full year ended December 31, 2009.

“The FDA approval of AMPYRA represents an important advance in the treatment of MS. It is also a significant step for Acorda toward our goal of becoming a leading innovator in neurology”

“The FDA approval of AMPYRA represents an important advance in the treatment of MS. It is also a significant step for Acorda toward our goal of becoming a leading innovator in neurology,” said Ron Cohen, M.D., President and CEO of Acorda Therapeutics. “We expect commercial supply of AMPYRA to be available beginning in March. As we launch AMPYRA, we also are focusing on advancing our preclinical pipeline to the clinic. We believe GGF2 may have important applications in both cardiac and neurological conditions, and will look to demonstrate proof of concept initially in heart failure. We expect to file an IND for this indication in early 2010.”

Financial Results and Product Update

ZANAFLEX CAPSULES® (tizanidine hydrochloride) and ZANAFLEX® (tizanidine hydrochloride) tablets gross sales - For the fourth quarter ended December 31, 2009, the Company reported combined gross sales of ZANAFLEX CAPSULES and ZANAFLEX tablets of $14.4 million, compared to combined gross sales of $14.0 million for the same quarter in 2008. For the full year ended December 31, 2009, the Company reported combined gross sales of ZANAFLEX CAPSULES and ZANAFLEX tablets of $58.3 million, compared to combined gross sales of $53.4 million in 2008.

Gross sales are recognized using a deferred revenue recognition model, meaning ZANAFLEX CAPSULES and ZANAFLEX tablet 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. ZANAFLEX franchise operations were cash flow positive on an operating basis for 2009.

ZANAFLEX CAPSULES and ZANAFLEX tablets shipments - Total ZANAFLEX CAPSULES and ZANAFLEX tablet shipments for the quarter ended December 31, 2009 were $18.4 million, compared to total shipments of $16.5 million for the same quarter in 2008. For the full year ended December 31, 2009, total ZANAFLEX CAPSULES and ZANAFLEX tablet shipments were $66.7million, compared to total shipments of $62.9 million in 2008.

License Revenue - For the quarter ended December 31, 2009, the Company reported license revenue of $2.4 million, a portion of the $110 million received from Biogen Idec International GmbH (Biogen Idec), a subsidiary of Biogen Idec Inc., for the collaboration agreement entered into on June 30, 2009. For the full year ended December 31, 2009, the Company reported license revenue of $4.7 million. The balance of this payment will be recognized as revenue ratably over the remainder of the estimated term of the collaboration agreement.

Cost of License Revenue - For the quarter ended December 31, 2009, the Company recorded cost of license revenue of $0.2 million and for the full year ended December 31, 2009, the Company recorded cost of license revenue of $0.3 million. This cost is related to the $7.7 million payment made to Elan as a result of the collaboration agreement the Company entered into with Biogen Idec. This payment will be recognized as expense ratably over the estimated term of the collaboration agreement as the related revenue is recognized.

Research and development expenses for the quarter ended December 31, 2009 were $10.6 million, including $1.1 million of share-based compensation, compared to $10.8 million including $0.7 million of share-based compensation for the same quarter in 2008. Research and development expenses for the full year ended December 31, 2009 were $34.6 million, including $3.7 million of share-based compensation, compared to $36.6 million including $2.3 million of share-based compensation in 2008. Research and development expense for the full year ended December 31, 2009 included costs related to our AMPYRA Phase 3 and long-term extension studies, preparation for the AMPYRA NDA filing and FDA Advisory Committee meeting for AMPYRA and development of our preclinical pipeline products.

Sales, general and administrative expenses for the quarter ended December 31, 2009 were $22.7 million, including $2.3 million of share-based compensation, compared to $19.6 million including $2.0 million of share-based compensation for the same quarter in 2008. Sales, general and administrative expenses for the full year ended December 31, 2009 were $89.9 million, including $8.6 million of share-based compensation, compared to $73.3 million including $7.5 million of share-based compensation in 2008. This increase in expenses was primarily due to increases in AMPYRA pre-launch activities and ZANAFLEX CAPSULES promotional activities.

Other income (expense), net for the quarter ended December 31, 2009 was $(0.4) million compared to $0.6 million for the same quarter in 2008. Other income (expense) for the full year ended December 31, 2009 was $(2.7) million compared to $(0.9) million in 2008.

The Company reported a net loss of $22.5 million for the quarter ended December 31, 2009, or $0.59 per diluted common share, compared to a net loss of $20.2 million, or $0.54 per diluted common share, for the same quarter in 2008. The Company reported a net loss of $83.9 million for the full year ended December 31, 2009, or $2.22 per diluted common share, compared to a net loss of $74.3 million, or $2.19 per diluted common share, in 2008.

As of December 31, 2009, Acorda held cash, cash equivalents and short-term investments of $272.1 million, compared to $246.0 million at December 31, 2008.

Significant Events for 2009 and 2010 to Date

AMPYRA

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