Acorda Therapeutics, Inc.
) recently announced that it has been awarded a research contract
worth $2.67 million by the US Army Medical Research and Material
Command (USAMRMC). The research contract will support the
development of AC105.
The company plans to initiate a phase II trial evaluating the
safety and tolerability of the candidate in patients suffering
from acute spinal cord injury (SCI). Enrollment process for the
study is expected to start in the first half of 2013.
AC105 enjoys fast-track status in the U.S. for the improvement
of functional recovery in acute SCI patients. Acorda intends to
seek orphan drug status from the US Food and Drug Administration
(FDA) and other regulatory authorities for the acute treatment of
SCI. The company also plans to evaluate the use of AC105 for
other central nervous system indications, such as traumatic brain
injury (TBI) and stroke.
In preclinical studies, the candidate demonstrated
neuroprotective properties and improvement of locomotor function
in SCI and cognitive function in TBI when the therapy was
initiated within four hours of injury.
In Jun 2011, Acorda entered into a licensing agreement with
) to acquire worldwide development and commercialization rights
to AC105. Per the terms of the deal, Acorda will pay up to $32
million to Medtronic on the achievement of development and
regulatory milestones in addition to the $3 million upfront
payment already paid. Medtronic will also be entitled to receive
a single-digit royalty on product sales.
Acorda carries a Zacks Rank #4 (Sell) in the short run. Pharma
stocks that currently look attractive include companies like
). Both are Zacks Rank #2 (Buy) stocks.
ACORDA THERAPT (ACOR): Free Stock Analysis
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MEDTRONIC (MDT): Free Stock Analysis Report
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