PEARL RIVER – Acorda Therapeutics (OTC:ACORQ) Inc. has been delisted from the Nasdaq Stock Market due to non-compliance with certain listing rules, following the initiation of Chapter 11 bankruptcy proceedings. The pharmaceutical company, known for developing neurological disorder therapies, failed to maintain the minimum stockholders' equity of $10 million as required by Nasdaq Listing Rule 5450(b)(1)(A), among other requirements.
Trading of Acorda's common stock on Nasdaq was suspended last Thursday, April 12, 2024. The stock is now quoted on the OTC Pink Open Market with the ticker symbol ACORQ since the date of suspension.
Acorda Therapeutics focuses on creating treatments aimed at improving the lives of individuals suffering from neurological disorders. Their products include INBRIJA, designed for the intermittent treatment of OFF episodes in Parkinson's disease patients, and AMPYRA, an extended-release tablet to improve walking in adults with multiple sclerosis.
The company's recent Chapter 11 filing is part of a restructuring effort to manage its debts and obligations. The delisting and bankruptcy proceedings underscore the financial challenges Acorda is facing, despite its portfolio of neurological therapies.
Investors should note that forward-looking statements from the company indicate various risks and uncertainties that could affect its operations and financial condition. These include the costs of bankruptcy proceedings, maintaining critical relationships and contracts, and the successful marketing of its products.
InvestingPro Insights
As Acorda Therapeutics Inc. navigates through its restructuring efforts, the real-time financial metrics provided by InvestingPro paint a detailed picture of the company's current market standing. Acorda's market capitalization has significantly diminished to a mere 0.06M USD, reflecting the market's response to its recent challenges. Despite a quarterly revenue growth of 20.7% in Q1 2023, the company's revenue on a year-over-year basis has experienced a decline of 0.79%. This indicates a potential rebound in sales, albeit from a lower base.
The gross profit margin remains high at 82.63%, suggesting that Acorda maintains a strong ability to control the cost of goods sold relative to its net sales. However, the overall financial health of the company is under strain, as evidenced by its negative operating income margin of -19.78%. The EBITDA growth of 196.84% may be a silver lining, showing some level of improvement in earnings before interest, taxes, depreciation, and amortization.
InvestingPro Tips indicate that the company's current share price represents only 4.96% of its 52-week high, which could be an indicator of significant undervaluation according to some investors' interpretation. Additionally, the InvestingPro Fair Value estimate for Acorda stands at 1.25 USD, suggesting a potential upside from the previous close price of 0.44 USD. For readers looking to delve deeper into Acorda's financials and future prospects, there are additional InvestingPro Tips available, providing a comprehensive analysis for informed decision-making. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes these valuable insights.
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