CORRECTING and REPLACING Acorda Provides Financial and Pipeline Update for First Quarter 2017

ARDSLEY, N.Y.–(BUSINESS WIRE)– Footnote 5 beneath Non-GAAP Income and Income per Common Share
Reconciliation table should read: Represents the tax effect of the
non-GAAP adjustments.

The corrected release reads: 

ACORDA PROVIDES FINANCIAL AND PIPELINE UPDATE FOR FIRST QUARTER 2017

• Corporate restructuring implemented to focus on late-stage Parkinson’s
  programs
• 2017 combined R&D and SG&A operating expense guidance revised to $330
  – $350 million, a reduction of ~$50 million
• Projected year-end cash balance greater than $200 million
• AMPYRA^® (dalfampridine) 1Q 2017 net revenue of
  $112.0 million; Company reiterates AMPYRA net sales guidance of $535 –
  $545 million

Acorda Therapeutics, Inc. (Nasdaq:ACOR)
today announced financial results for its first quarter ended March 31,
2017, and provided an update on the Company’s pipeline, financial
guidance and corporate restructuring.

As previously announced, following the decision by the United States
District Court for the District of Delaware invalidating certain patents
pertaining to AMPYRA^®, Acorda implemented a corporate
restructuring to reduce its cost structure and focus resources on its
late-stage Parkinson’s disease programs, CVT-301 and tozadenant. The
proposed brand name for CVT-301 is INBRIJA™ (levodopa inhalation
powder). The Company expects to maintain exclusivity of AMPYRA at least
through July 2018 and plans to appeal the ruling on the invalidated
patents.

“We acted decisively to reduce expenses within days of the Court’s
ruling. Moving forward, we will focus on advancing our late-stage
Parkinson’s programs, INBRIJA and tozadenant,” said Ron Cohen, M.D.,
Acorda’s President and CEO. “Our restructuring will enable us to execute
these programs on a strong financial footing, and we are confident in
the value we will be able to create for shareholders.”

Acorda’s top priorities over the next 12 months are to:

• Submit a New Drug Application (NDA) for INBRIJA to the U.S. Food and
  Drug Administration (FDA) in the second quarter of 2017 and submit the
  Marketing Authorization Application (MAA) to the European Medicines
  Agency (EMA) by the end of 2017.
• Plan for commercialization and launch of INBRIJA in the United States.
• Complete the tozadenant Phase 3 study (TOZ-CL-05), with topline
  results in the first quarter of 2018.
• Maximize AMPYRA value and ensure continued patient access.

First Quarter 2017 Financial Results

AMPYRA^® (dalfampridine) Extended Release Tablets, 10 mg – For
the quarter ended March 31, 2017, the Company reported AMPYRA net
revenue of $112.0 million, up 2% compared to $109.6 million for the same
quarter in 2016.

ZANAFLEX CAPSULES^® (tizanidine hydrochloride), ZANAFLEX^®
(tizanidine hydrochloride) tablets and authorized generic capsules – For
the quarter ended March 31, 2017, the Company reported combined net
revenue and royalties from ZANAFLEX and tizanidine of $1.7 million,
compared to $1.2 million for the same quarter in 2016.

FAMPYRA^® (prolonged-release fampridine tablets) – For the
quarter ended March 31, 2017, the Company reported FAMPYRA royalties
from sales outside of the U.S. of $2.5 million, compared to $2.5 million
for the same quarter in 2016.

Research and development (R&D) expenses for the quarter ended March 31,
2017 were $46.5 million, including $2.5 million of share-based
compensation, compared to $44.6 million, including $2.1 million of
share-based compensation, for the same quarter in 2016.

Selling, general and administrative (SG&A) expenses for the quarter
ended March 31, 2017 were $51.7 million, including $5.3 million of
share-based compensation, compared to $51.8 million, including $6.0
million of share-based compensation, for the same quarter in 2016.

Benefit from income taxes for the quarter ended March 31, 2017 was $0.9
million, compared to $9.7 million, for the same quarter in 2016.

The Company reported a GAAP net loss of $18.9 million for the quarter
ended March 31, 2017, or $0.41 per diluted share. The GAAP net loss in
the same quarter of 2016 was $0.5 million, or $0.01 per diluted share.

Non-GAAP net loss for the quarter ended March 31, 2017 was $3.6 million,
or $.08 per diluted share. Non-GAAP net income in the same quarter of
2016 was $12.4 million, or $0.27 per diluted share. This quarterly
non-GAAP net income measure, more fully described below under “Non-GAAP
Financial Measures,” excludes share-based compensation charges,
unrealized foreign currency gain, non-cash interest charges on our debt,
changes in the fair value of acquired contingent consideration, and
acquisition-related expenses. A reconciliation of the GAAP financial
results to non-GAAP financial results is included with the attached
financial statements.

At March 31, 2017, the Company had cash and cash equivalents of $133.6
million. The Company has $345 million of convertible senior notes due in
2021 with a conversion price of $42.56.

Corporate Restructuring and 2017 Guidance Update

Following the decision by the United States District Court for the
District of Delaware invalidating certain patents pertaining to AMPYRA,
Acorda implemented a corporate restructuring to reduce its cost
structure and focus resources on its late-stage Parkinson’s disease
programs, INBRIJA and tozadenant.

• Corporate Restructuring
  • The company reduced personnel and non-personnel related expenses
    in 2017, resulting in a total reduction of 2017 expenses of
    approximately $50 million.
  • The operating expense reductions will enable the Company to fund
    operations through key milestones for its late-stage development
    programs, including the launch of INBRIJA in the United States and
    topline data from the tozadenant Phase 3 efficacy study in the
    first quarter of 2018.

• Revised Guidance for 2017
  • The Company reiterates AMPYRA net sales guidance of $535 – $545
    million.
  • Combined 2017 R&D and SG&A operating expense guidance reduced from
    $380 – $400 million to $330 – $350 million, a reduction of ~$50
    million. This guidance is a non-GAAP projection that excludes
    share-based compensation and restructuring costs, as more fully
    described below under “Non-GAAP Financial Measures.”
  • The Company expects to be cash flow positive in 2017, with a
    projected year-end cash balance in excess of $200 million. The
    Company expects a similar year-end 2018 cash balance based on its
    current internal assumptions for 2018 AMPYRA revenue projections.

Pipeline and Corporate Developments

• AMPYRA (dalfampridine)
  • In March, the United States District Court for the District of
    Delaware upheld U.S. Patent No. 5,540,938 (the ‘938 patent), which
    is set to expire July 30, 2018. The Court invalidated four patents
    pertaining to AMPYRA that were set to expire between 2025 and 2027.
  • Based on the District Court ruling, Acorda expects to maintain
    exclusivity of AMPYRA through July 2018; the Company will appeal
    the ruling on the invalidated patents.
  • In March, the United States Patent and Trademark Office (USPTO)
    Patent Trials and Appeal Board (PTAB) upheld all four patents
    challenged via the inter partes review (IPR) process.

• INBRIJA in Parkinson’s disease
  • In March, the Company announced results from two ongoing,
    long-term safety studies of INBRIJA in people with Parkinson’s.
  • Based on the results of the Phase 3 efficacy study and the two
    long-term safety studies, the Company plans to file an NDA with
    the FDA in the second quarter of 2017.
  • Data from the Phase 3 efficacy study (Study 004) has been accepted
    as a late-breaker at the International Congress of Parkinson’s
    Disease and Movement Disorders (MDS), taking place in Vancouver,
    BC June 4-8, 2017.

• Tozadenant in Parkinson’s disease
  • In April, the first patient in the TOZ-CL-06 Phase 3 long-term
    safety study was randomized and began receiving study medication.
  • The ongoing tozadenant Phase 3 safety and efficacy study
    (TOZ-CL-05) is expected to report topline results in 1Q 2018.

• CVT-427 in Acute Migraine
  • In December, we completed a special population study to evaluate
    safe inhalation in people with asthma and in smokers.
  • Some subjects showed evidence of acute, reversible
    bronchoconstriction, post-inhalation.
  • We are evaluating next steps for the program and CVT-427 will not
    advance into a Phase 2 study by the end of 2017, as previously
    expected.
• Board of Directors
  • Effective February 17, 2017, Catherine D. Strader, Ph.D. joined
    Acorda’s Board of Directors. Dr. Strader assumed a newly-added
    Board seat and will be up for election in 2018.

Webcast and Conference Call

Acorda will host a conference call today at 8:30 a.m. ET to review first
quarter 2017 results. To participate, dial (844) 543-5233 (domestic) or
(678) 276-7225 (international) and reference the access code 1387861.
The presentation will be available on the Investors section of www.acorda.com.

A replay of the call will be available from 11:30 a.m. ET on April 27,
2017 until 11:59 p.m. ET on May 4, 2017. To access the replay, please
dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and
reference the access code 1387861. The archived webcast will be
available in the Investor Relations section of the Acorda website.

About Acorda Therapeutics

Founded in 1995, Acorda Therapeutics is a biopharmaceutical company
focused on developing therapies that restore function and improve the
lives of people with neurological disorders. Acorda has a pipeline of
novel neurological therapies addressing a range of disorders, including
Parkinson’s disease, migraine and multiple sclerosis. Acorda markets
three FDA-approved therapies, including AMPYRA® (dalfampridine) Extended
Release Tablets, 10 mg. For more information, please visit the Company’s
website at: www.acorda.com.

Forward-Looking Statement

These statements are subject to risks and uncertainties that could cause
actual results to differ materially, including: the ability to realize
the benefits anticipated from the Biotie and Civitas transactions, among
other reasons because acquired development programs are generally
subject to all the risks inherent in the drug development process and
our knowledge of the risks specifically relevant to acquired programs
generally improves over time; the ability to successfully integrate
Biotie’s operations and Civitas’ operations, respectively, into our
operations; we may need to raise additional funds to finance our
expanded operations and may not be able to do so on acceptable terms;
our ability to successfully market and sell Ampyra (dalfampridine)
Extended Release Tablets, 10 mg in the U.S., which will likely be
materially adversely affected by the recently announced court decision
in our litigation against filers of Abbreviated New Drug Applications
(each, an “ANDA”) to market generic versions of 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 INBRIJA (our trade name for CVT-301), or any other
acquired or in-licensed programs; we may not be able to complete
development of, obtain regulatory approval for, or successfully market
INBRIJA, any other products under development, or the products that we
acquired with the Biotie transaction; the occurrence of adverse safety
events with our products; delays in obtaining or failure to obtain and
maintain regulatory approval of or to successfully market Fampyra
outside of the U.S. and our dependence on our collaborator Biogen in
connection therewith; competition; 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; and failure to comply with regulatory
requirements could result in adverse action by regulatory agencies.

These and other risks are described in greater detail in our filings
with the Securities and Exchange Commission. We may not actually achieve
the goals or plans described in our forward-looking statements, and
investors should not place undue reliance on these statements.
Forward-looking statements made in this press release are made only as
of the date hereof, and we disclaim any intent or obligation to update
any forward-looking statements as a result of developments occurring
after the date of this press release.

Non-GAAP Financial Measures

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 non-GAAP net
income, adjusted to exclude the items below, and has provided 2017
guidance for R&D and SG&A on a non-GAAP basis. Non-GAAP financial
measures are not an alternative for financial measures prepared in
accordance with GAAP. However, the Company believes the presentation of
non-GAAP net income, when viewed in conjunction with our GAAP results,
provides investors with a more meaningful understanding of our ongoing
and projected operating performance because this measure excludes (i)
non-cash charges and benefits that are substantially dependent on
changes in the market price of our common stock, (ii) non-cash interest
charges related to the accounting for our outstanding convertible debt
which are in excess of the actual interest expense owing on such
convertible debt as well as non-cash interest charges related to our
asset based loan and acquired Biotie debt, (iii) changes in the fair
value of acquired contingent consideration which do not correlate to our
actual cash payment obligations in the relevant period, (iv) unrealized
foreign currency gain related to the Biotie acquisition, (v) acquisition
related expenses that pertain to a non-recurring event, and (vi)
corporate restructuring expenses that pertain to a non-recurring event.
The Company believes its non-GAAP net income measure helps indicate
underlying trends in the Company’s business and is important in
comparing current results with prior period results and understanding
projected operating performance. Also, management uses this non-GAAP
financial measure to establish budgets and operational goals, and to
manage the Company’s business and to evaluate its performance.

In addition to non-GAAP net income, we have provided revised 2017
guidance for R&D and SG&A on a non-GAAP basis. Due to the forward
looking nature of this information, the amount of compensation charges
and benefits needed to reconcile these measures to the most directly
comparable GAAP financial measures is dependent on future changes in the
market price of our common stock and is not available at this time. The
Company believes that these non-GAAP measures, when viewed in
conjunction with our GAAP results, provide investors with a more
meaningful understanding of our ongoing and projected R&D and SG&A
expenses. 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.

Financial Statements

Note: Non-GAAP net income per share basic and diluted as presented above
were also revised as a result of the changes to the income tax effect of
the non-GAAP adjustments as noted above.

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