Acorda Therapeutics (NASDAQ:ACOR) is a New York-based company is engaged in the development and commercialization of therapies for neurological disorders in the United States. Shares of Acorda have jumped 10% week-over-week as of close on Monday, April 1, 2024. The stock is still down 9.8% so far in 2024. What is behind this price activity? Let’s jump in.
The company filed for Chapter 11 bankruptcy protection over the 2024 Easter weekend. Chapter 11 bankruptcy in the United States allows for an organization to keep its business or businesses alive as it looks to pay its creditors over a set time. Because of this, a Chapter 11 filing is often referred to as a “reorganization” bankruptcy.
Acorda cancelled its final batch of fiscal 2023 earnings that were set to be unveiled in the first half of March 2024. In the third quarter (Q3) of fiscal 2023, Acorda Therapeutics reported a net revenue increase of 4% to $8.1 million. Meanwhile, prescription requests increased by 38% in the first three quarters of fiscal 2023 compared to the previous year. The company also reaffirmed its INBRIJA revenue guidance between $34 million and $38 million.
This company has delivered solid earnings growth in recent years, but the Chapter 11 filing will put Acorda on the backfoot going forward. Acorda will be a company worth watching as it wades through this bankruptcy filing in 2024.
