PEARL RIVER, N.Y. - Acorda Therapeutics , Inc. (NASDAQ:ACOR), a biotechnology company focused on developing therapies for neurological disorders, is set to be delisted from the Nasdaq Stock Market. The decision comes following the company's voluntary Chapter 11 bankruptcy filing, as confirmed by Nasdaq's notification to Acorda on Wednesday.
The trading suspension and subsequent delisting of Acorda's common stock are scheduled to take effect at the opening of business on April 12, 2024. This action by Nasdaq is in response to Acorda's noncompliance with its Listing Rules, specifically due to the company's Chapter 11 proceedings and its failure to maintain the required minimum stockholders' equity of $10 million.
The move to delist stems from Acorda's April 1, 2024, announcement of an agreement with Merz Therapeutics to acquire substantially all of Acorda's assets. The acquisition is part of the Chapter 11 bankruptcy process, which Acorda and certain affiliates initiated in the U.S. Bankruptcy Court for the Southern District of New York.
Post-delisting, Acorda expects its common stock to begin trading on the Pink Open Market, often referred to as the "pink sheets," a marketplace for trading securities that are not listed on major stock exchanges.
Acorda is known for its products like INBRIJA®, approved for treating OFF episodes in adults with Parkinson's disease, and AMPYRA® (dalfampridine) Extended Release Tablets, 10 mg. These products are part of the company's efforts to improve the lives of people with neurological disorders through innovative therapies.
The future of Acorda's operations and the commercial success of its products, including INBRIJA and AMPYRA, may be influenced by a range of factors. These include the company's ability to manage its relationships with suppliers, service providers, customers, and employees during the Chapter 11 process, as well as its ability to maintain critical contracts and successfully market its products.
The information in this article is based on a press release statement from Acorda Therapeutics. Investors and the public are advised that forward-looking statements in the press release are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
InvestingPro Insights
As Acorda Therapeutics, Inc. (NASDAQ:ACOR) faces the challenges of delisting and Chapter 11 bankruptcy, investors are closely monitoring the financial health of the company. According to real-time data from InvestingPro, Acorda has a market capitalization of just $2.51 million, which is a critical factor considering the company's current restructuring efforts.
The company's revenue for the last twelve months as of Q4 2023 stands at $117.63 million, with a notable gross profit margin of 82.63%. However, Acorda's operating income margin during the same period reflects financial strain, with a negative 19.78%.
Investors should also be aware of the company's recent stock performance. The InvestingPro Tip that Acorda's stock has taken a big hit over the last week, with a one-week price total return of -79.01%, aligns with the broader trend observed over the last year, with the price falling significantly. Moreover, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, which could be of interest to those looking for potential entry points in the context of a high-risk investment.
For a deeper analysis and more InvestingPro Tips, such as the company's significant debt burden and its cash burn rate, interested investors can explore further insights on InvestingPro. There are 15 additional tips available on the platform that provide a comprehensive view of Acorda's financial position and market performance. To gain access to these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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