On April 1, they filed for Chapter 11 bankruptcy with plans to liquidate following a pending sale. This move shines a light on a broader issue: the healthcare sector’s growing financial instability over the past few years.

The early months of this year alone have seen a spike from around five filings in January to an additional 12 by February, signaling a continued atmosphere of uncertainty.

Soon after, on February 13, Invitae Corp. followed suit, also declaring over $1 billion in liabilities against $500 million to $1 billion in assets.

Their goal is to negotiate a sale to Merz Therapeutics with a bid of $185 million. 

Merz also creates medications for people who have movement disorders, such as MS and Parkinson’s.

By taking control of the medications Acorda once made, Merz will seemingly continue to grow its presence throughout the United States, Canada, and Mexico.

König said, “We recognize the responsibility of providing continued patient care and support for Acorda’s well-established and innovative therapies and see this as an optimal potential portfolio expansion that underscores our ambition in key therapeutic areas.”

This financing can be broken down into $10 million upon interim and final court approval, plus a $40 million debt roll-up.

The news sent Acorda’s shares tumbling nearly 40%, according to Market Watch, signaling investor concerns over the company’s viability.

According to a New York State Department of Labor notice, all 97 Acorda Therapeutics employees located at their Pearl River-based location will be laid off. This location will also fully shut down. The layoffs, and the closure of the office, will occur in June of 2024.

This is occurring as both companies work to ensure medication access is steady for all patients during this time.

“One of our top priorities is to ensure an uninterrupted supply of our medications to people with multiple sclerosis and Parkinson’s disease,” Dr. Cohen stated. “We are confident that Merz Therapeutics, if they are the ultimate acquirer, will be able to seamlessly continue serving these patients’ needs, given Merz’s longstanding dedication to improving the lives of people who suffer from movement disorders and other neurological conditions.”

This resulted in Acorda laying off 25% of its entire workforce in 2019 alone. In 2021, they laid off 16% at the beginning of the year, only to then lay off another 15% later that same year.

Their flagship drug, Ampyra, has been a game-changer for patients with multiple sclerosis, enhancing their mobility and quality of life, managed through a partnership with Pantheon Inc.

They also faced a devastating court ruling in 2018 that invalidated key patents for their drug Ampyra, leading to generic competitors drastically cutting their revenue streams.

These factors hindered the company’s ability to finance further drug development and exploration.

This occurred for a variety of reasons. Regular competition in the pharmaceutical industry played a huge role.

However, adjustments had to be made when it became apparent that the treatment wouldn’t be bringing in this much money. Quickly, it was estimated that the company would instead make anywhere from $350 million and $500 million.

Therefore, the enormous sales estimations seemingly set the company up to fail, as Acorda didn’t bring in nearly as much as they anticipated they would.

However, when the company lost its four patents, the sales of the medication slipped to $163 million the next year.

The drug only generated $15.7 million in 2023, becoming another medication treatment that only brought in disappointing numbers for Acorda.

This process is part of the company’s efforts to find a viable path forward through its financial difficulties, as it seeks to liquidate its assets and address its liabilities.

The hearing is a critical point in the bankruptcy process, as it will determine the future of the company’s assets.

Despite its significant contributions to neurological disease treatment, the company’s financial challenges reflect the broader pressures weighing on the healthcare industry today.