Acorda Stroke Study Fails, Dampening Revenue Growth Plans

Acorda Therapeutics (ACOR) shares are trading lower Monday after the company's latest failed attempt to expand the use of its top-selling drug Ampyra.

A mid-stage study of Ampyra in patients with walking difficulties following a stroke "did not show sufficient efficacy" to support further clinical development, Acorda said Monday.

The company's stock fell 9% to $19.30 per share in early Monday trading on the disappointing Ampyra news.

Ampyra is approved to improve the walking ability of multiple sclerosis patients. Ampyra sales of $437 million in 2015 made up 89% of Acorda's total revenue. The drug is expected to generate $489 million in sales this year, according to FactSet estimates.

Future Ampyra revenue is at risk due to an ongoing inter partes review of the drug's patents. A decision on the patent challenge is expected next year.

With expansion of Ampyra into additional indications on hold, Acorda says it will now focus research and development resources on a late-stage Parkinson's disease drugs CVT-301 and tozadenant, along with earlier assets CVT-427 in migraine, SYN120 in Parkinson's and rHIgM22 in MS.

At Friday's close, Acorda's market value was less than two times 2017 revenue, a sign investors were already uneasy about the company's future growth prospects, including the Ampyra stroke trial.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

If you liked this article you might like

Acorda Shares Down on FDA's 'Refusal to File' Letter - Biotech Movers

Acorda Stiff-Arms Investor's Demand for Sale

Biotech Movers: Adamis Shares Jump After FDA Approves Epinephrine Pre-filled Syringe