CORRECT: Acorda Shares Up As MS Drug Ampyra Shows Early Strength In 2Q
August 04 2010 - 05:55PM
Dow Jones News
Acorda Therapeutics Inc. (ACOR) reported strong sales in its
first full quarter of selling the multiple sclerosis symptoms
treatment Ampyra, sending its shares 6.4% higher in Tuesday
trading.
The Hawthorne, N.Y., drug maker reported second-quarter sales of
almost $30 million for the pill, which is intended to improve
walking in patients with the neurological condition. About 4,200
physicians have written prescriptions for the drug as of July 30,
according to the company.
"We view these sales as highly encouraging, setting a good pace
right out of the gate," Lazard Capital Markets analyst Joel Sendek
wrote in a note to clients. He had projected Ampyra sales of $17.7
million for the period.
Acorda declined to provide guidance for Ampyra. However, the
company worked to resolve a backlog of orders for the drug
following its March launch and get insurers to pay for the
pill.
Sendek said he believes the launch is progressing well and
predicted strong third-quarter sales, citing positive trends from
July. Meanwhile, Leerink Swann expects Ampyra to post annual sales
of $121 million this year and $674 million by 2014.
Shares of Acorda closed Tuesday at $35.29.
Acorda, which also sells the spasticity treatment Zanaflex,
recorded total revenue of $42.8 million for the second quarter.
That compares with sales of $17.7 million in the previous quarter,
when Ampyra contributed $3.4 million in sales from its first month
on the market.
For the three months ended June 30, Acorda narrowed its loss to
$6.8 million, or 18 cents per share, from a loss of $23.3 million,
or 62 cents per share, in the same period a year earlier.
The results beat analysts' projections for a loss of 46 cents
per share on revenue of $29 million.
During the quarter, Acorda continued to work with insurers on
getting the drug covered. The company said that a "mid-single digit
percentage" of patients still aren't getting reimbursement from
their insurers.
"It is an evolving landscape and it will continue to evolve over
the next year," Chief Executive Ron Cohen said Tuesday.
Acorda has 100 sales representatives selling Ampyra in the U.S.
They are targeting 5,500 specialists in their effort and already
have covered the "vast majority" of that group, Cohen said.
Furthermore, he said Acorda intends to acquire a later-stage
drug candidate by the end of the year to augment the early-stage
candidates in the company's pipeline. Although Acorda is interested
in drugs that already have received regulatory clearance, it is
unlikely to add one by the end of the year, he said.
An acquisition would likely be in neurology to leverage Acorda's
current sales force, and could range from a migraine drug to an
epilepsy or stroke treatment, Cohen said.
He declined to specify the size of any prospective deal. The
company had cash, cash equivalents and short-term investments of
$216 million at the end of June.
Acorda also disclosed that it received nonfinal rejection
letters from the U.S. Patent and Trademark Office on two patent
applications for Ampyra filed in 2004 and 2005. It has six months
to respond to the letters.
Ampyra has patent protection only until 2013, but Acorda plans
to seek an extension of up to five years, citing the extended
development and regulatory review of the drug. The drug has orphan
drug exclusivity until January 2017.
Acorda also is researching other formulations of the twice-daily
drug that could allow for less frequent dosing, potentially
providing additional exclusivity, Cohen said.
Last year, Acorda signed a partnership for Biogen Idec Inc.
(BIIB) to market and develop Ampyra, also known as fampridine-SR,
outside the U.S. Biogen has filed for approval to sell the drug in
Europe and Canada.
-By Thomas Gryta, Dow Jones Newswires; 212-416-2169;
thomas.gryta@dowjones.com
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