Acorda Therapeutics is cutting its workforce by 15% and outsourcing certain unspecified operations, resulting in a savings of $20 million, according to the Ardsley-based biotech company.
Robert Morales, the company”™s vice president, finance and controller and interim principal financial and accounting officer, has resigned from the company with an effective date expected to be no later than the end of this month, according to a Sept. 9 filing with the Securities and Exchange Commission.
Most of the staff cuts are taking place immediately with the remainder of the layoffs to be completed by early 2022. The exact number of people being let go was not released.
On Oct. 23, 2019, the company cut 25% of its staff and was expected to see a cost savings of $21 million in the second quarter of 2020.
The company stated in an SEC filing it estimates that it will incur about $3 million of pretax charges, “substantially all of which will be cash expenditures, for severance and other costs relating to the restructuring through the first quarter of 2022.”
The company was trading at $4.46 per share at end of day Sept. 9.
Acorda’s financial problems began in 2016 after a court invalidated its patents for Ampyra, which may help improve walking in adults with MS. In October 2019, the U.S. Supreme Court declined to hear the company’s appeal of a decision by the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., to void Acorda’s Ampyra patents.
Generic versions of Ampyra have substantially cut into Acorda’s sales.
According to the Sept. 9 SEC filing, Acorda has reduced the compensation of Dr. Ron Cohen, the company”™s president and CEO. Cohen”™s annual base salary has been cut from $795,675 to $625,000, and his target payout amount under the Company”™s nonequity incentive compensation program has been reduced from 80% to 70% of his annual base salary.
Cohen was appointed Acorda’s principal financial and accounting officer on an interim basis effective upon Morales”™ departure.
“The headcount reductions and structural changes we have made will enable us to operate more efficiently and further align our expenses with revenue, while continuing to grow Inbrija (medication) sales,” Cohen said in a statement. “We are deeply grateful to the associates who are leaving Acorda for their commitment, hard work and many contributions.”
The planned management changes includes the promotion of Lauren Sabella from chief commercial officer to chief operating officer.
Kerry Clem, who previously served as executive vice president of sales, market access and operations, will now succeed Sabella as chief commercial officer. He will be paid $415,000.
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.
Staff writer Bob Rozycki contributed to this report.
