Acorda Therapeutics said Wednesday that it reached a definitive agreement to sell manufacturing operations for its Parkinson's disease drug Inbrija (levodopa inhalation powder) in Chelsea, Massachusetts, to Catalent for an upfront cash payment of $80 million. As part of the deal, Catalent will absorb all Acorda employees at the Chelsea facility, as well as certain Acorda staffers who work at its site in Waltham, Massachusetts.
Meanwhile, in a bid to cut costs and focus resources on Inbrija, Acorda said it is also implementing a corporate restructuring that will see the company decrease its headcount by 16% through a reduction in force between its headquarters in Ardsley, New York, the Waltham site and field staff.
CEO Ron Cohen called the restructuring a "difficult step," but said it was "necessary for Acorda to have an infrastructure and expenses that are right-sized for our products and revenue." Cohen added that "through the sale of the Chelsea operations, we are monetising our excess manufacturing capacity and significantly reducing expenses," outcomes that will ensure patients have "uninterrupted access to Inbrija, while meaningfully improving…our balance sheet."
Acorda estimates that the restructuring and the sale of its Chelsea operations, which is expected to complete in the first quarter, will reduce annual operating expenses by approximately $40 million. In 2019, the company announced another corporate restructuring that included shrinking its headcount by approximately 25% through a reduction in force. That move came in the wake of a US court upholding a decision to invalidate patents covering Acorda's multiple sclerosis drug Ampyra (dalfampridine).
The FDA approved Inbrija in 2018, following a delayed review, for the intermittent treatment of OFF episodes in patients with Parkinson's disease treated with carbidopa/levodopa. Acorda estimates that the drug's sales totaled approximately $24 million last year, including roughly $9 million in the fourth quarter. Meanwhile, the company said Ampyra's full-year 2020 net revenue was about $98 million, with fourth-quarter sales of around $25 million.
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