Acorda Therapeutics Inc.'s
) shares, which were down 4.3% immediately after the release of
third quarter 2013 results, were up marginally (0.9%) in Friday's
trading session. Overall, shares are down 3.4% since third
The company's performance was mixed with earnings surpassing
expectations and revenues missing the same. Third quarter 2013
earnings (including share-based compensation charges) of 18 cents
per share were well above the Zacks Consensus Estimate of 10
cents per share but 25% below the year-ago earnings.
Quarterly revenues increased 9.7% to $84.9 million, missing
the Zacks Consensus Estimate of $90 million.
Quarter in Detail
The bulk of net product revenues at Acorda came from Ampyra,
which is marketed for the improvement of walking in multiple
sclerosis patients. Ampyra revenues came in at $77.8 million, up
11.5% from the year-ago period. Ampyra revenues remained flat on
a sequential basis.
Acorda has a licensing agreement with
) for the development and commercialization of Ampyra outside the
U.S. Ampyra is available outside the U.S. under the trade name
Fampyra. Fampyra royalties grew 33.3% from the year-ago period to
Ampyra is being studied for other indications as well. Acorda
intends to commence a phase IIb/III study with Ampyra
(once-daily) for the treatment of post-stroke deficits,
especially walking improvement. The study is scheduled to
commence in the second quarter of 2014 following discussions with
the FDA and once results from a second pharmacokinetics (PK)
study of the once-daily formulation are available. As far as
evaluating Ampyra for cerebral palsy is concerned, Acorda has
decided it will not continue with the development of Ampyra for
Zanaflex capsules and tablets recorded revenues of $2.7
million in the third quarter of 2013, down 28.9%. Acorda has
) to commercialize the generic version of Zanaflex.
Acorda's research and development (R&D) expenses increased
15% to $13.8 million. Selling, general and administrative
(SG&A) expenses came in at $42.3 million, up 5.5% from the
Acorda narrowed its Ampyra revenue guidance to $295 million -
$305 million from the earlier guidance of $285 million - $315
million. Acorda cut its 2013 R&D guidance by $15 million to
$45 million - $55 million (old guidance: $60 million - $70
million). The cut reflects Acorda's decision to not move ahead
with the development of Ampyra for cerebral palsy as well as
adjustments in other R&D programs. The company expects
R&D spend to increase next year with the advancement of its
Acorda also lowered its 2013 SG&A guidance by $5 million
to $165 million - $175 million (old guidance: $170 million - $180
million). The new guidance reflects timing issues. Acorda expects
SG&A spend to increase next year as it moves closer to
launching Diazepam Nasal Spray - the new drug application for the
candidate will be filed by the end of this year.
Acorda's third quarter results were mixed. Although earnings
surpassed expectations, revenues missed and Ampyra's performance
was lackluster with sales remaining flat on a sequential basis.
The company narrowed its 2013 guidance for Ampyra. We expect
lower costs to boost the bottom line in 2013.
Meanwhile, we are pleased with the company's progress with its
pipeline and expect to hear more on the same at the upcoming
Acorda is a Zacks Rank #3 (Hold) stock. Currently, companies
) look well-positioned with a Zacks Rank #1 (Strong Buy).
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