Market Dynamics and Financial Trajectory of AMPYRA
Introduction to AMPYRA
AMPYRA, also known as dalfampridine, is a medication developed by Acorda Therapeutics to improve walking in patients with multiple sclerosis (MS). It works by blocking potassium leakage from the degenerated myelin sheath, thereby increasing nerve signal conduction from the brain to other parts of the body[1].
Launch and Initial Success
AMPYRA was launched in March 2010 and quickly gained traction among neurologists and patients. By the end of the third quarter of 2010, the drug had seen a significant increase in prescriptions, with patient starts rising by 22% to 16,920, and almost 90% of high-prescribing specialists writing at least one AMPYRA prescription. Approximately 31,000 MS patients in the USA had tried the drug by then, representing about 8% of all MS patients in the country[1].
Peak Sales and Revenue
AMPYRA reached its peak in terms of sales and revenue in the years following its launch. In 2015, the drug generated $437 million in sales, accounting for 89% of Acorda's annual revenues. Sales continued to climb, with a nearly 15% year-over-year increase through the third quarter of 2016[4].
Challenges and Decline
However, several factors have contributed to the decline in AMPYRA's sales and revenue over the years.
Generic Competition
One of the most significant challenges was the loss of exclusivity in 2018, which allowed generic versions of the drug to enter the market. This led to a decline in AMPYRA's net revenue. For example, in the third quarter of 2023, AMPYRA net revenue was $15.7 million, a 26% decrease compared to the same quarter in 2022[2].
Failed Clinical Trials
Acorda's attempt to expand AMPYRA's indication to post-stroke walking difficulties failed in clinical trials. This failure impacted the drug's potential for additional revenue streams and further limited its growth prospects[4].
Patent Challenges
The drug has also faced patent challenges, including an inter partes review of a patent challenge, which has added uncertainty to its future revenue potential[4].
Financial Performance
Quarterly and Annual Revenue
In recent years, AMPYRA's revenue has continued to decline. For the quarter ended September 30, 2023, AMPYRA net revenue was $15.7 million, down from $21.1 million in the same quarter of 2022. For the full year 2021, AMPYRA net revenue was $84.6 million, and for the fourth quarter of 2021, it was $22.5 million[2][3].
Operating Expenses
Acorda has been working to manage its operating expenses in the face of declining revenue. The company reduced its operating expenses significantly, with a $60 million annualized reduction expected in 2022 compared to 2020. Research and development (R&D) expenses and sales, general, and administrative (SG&A) expenses have also been reduced over the years[3][5].
Diversification Efforts
To mitigate the impact of AMPYRA's declining revenue, Acorda has diversified its product portfolio. For instance, the company acquired Biote, a Finnish firm, adding two Parkinson's drugs to its pipeline. Additionally, Acorda has seen growth in its other product, INBRIJA (levodopa inhalation powder), with a 22% increase in net revenue in 2021 compared to 2020[3][4].
Global Sales and Partnerships
AMPYRA's sales are not limited to the U.S. market. Acorda has agreements to commercialize INBRIJA and FAMPYRA (the ex-U.S. version of AMPYRA) in other countries. For example, INBRIJA was launched in Spain in early 2023, and Acorda expects significant royalties from these international sales[3].
Future Outlook
Given the ongoing decline in AMPYRA's revenue due to generic competition and the failure to expand its indications, Acorda expects AMPYRA revenue to continue to decrease. However, the company is focusing on maintaining fiscal discipline and exploring new revenue streams through its diversified product portfolio and international partnerships[2][3].
Key Takeaways
- Initial Success: AMPYRA saw significant growth and adoption following its launch in 2010.
- Decline Due to Generics: The loss of exclusivity in 2018 led to a decline in revenue.
- Failed Clinical Trials: Attempts to expand indications to post-stroke walking difficulties were unsuccessful.
- Diversification: Acorda has diversified its portfolio to mitigate the impact of AMPYRA's decline.
- Global Sales: The company is leveraging international partnerships to generate additional revenue.
- Financial Management: Acorda is managing operating expenses to maintain fiscal stability.
FAQs
Q: What is AMPYRA used for?
A: AMPYRA is used to improve walking in patients with multiple sclerosis (MS) by blocking potassium leakage from the degenerated myelin sheath.
Q: When was AMPYRA launched?
A: AMPYRA was launched in March 2010.
Q: Why has AMPYRA's revenue declined?
A: The revenue has declined due to the loss of exclusivity in 2018, allowing generic versions to enter the market, and the failure of clinical trials to expand its indications.
Q: How is Acorda managing the decline in AMPYRA revenue?
A: Acorda is diversifying its product portfolio, reducing operating expenses, and leveraging international partnerships to generate new revenue streams.
Q: What other products does Acorda Therapeutics market?
A: Besides AMPYRA, Acorda markets INBRIJA (levodopa inhalation powder) and has other products in its pipeline, including those acquired through the purchase of Biote.
Sources
- CBS News - Acorda's MS Drug Ampyra Looks Good Now, but That Probably Won't Last
- Business Wire - Acorda Therapeutics Reports Third Quarter 2023 Financial Results
- Acorda Therapeutics - Reports Fourth Quarter and Full Year 2021 Financial Results
- BioPharma Dive - Trial miss derails Acorda's Ampyra plans
- Business Wire - Acorda Therapeutics Reports Third Quarter 2022 Financial Results