Acorda Therapeutics, Inc.'s
) first quarter earnings of 2 cents per share missed the Zacks
Consensus Estimate of 4 cents. The company reported a loss of 3
cents per share in the year-ago quarter.
Total revenues for the quarter were $80.5 million, up 12.0%
from the year-ago quarter. Revenues surpassed the Zacks Consensus
Estimate of $79.0 million.
Quarter in Details
The bulk of net product revenues at Acorda came from Ampyra,
which generated $72.5 million in the reported quarter, up 16.4%
from the year-ago period. Ampyra revenues decreased 14.3% on a
Acorda's Ampyra is marketed in the ex-U.S. markets under the
trade name Fampyra by
). Fampyra royalties declined 17.2% from the year-ago period to
Zanaflex capsules and tablets recorded revenues of $3.1
million in the first quarter of 2014, down 29.5%. Acorda has
) to commercialize the generic version of Zanaflex.
Acorda's research and development (R&D) expenses increased
16.0% to $14.5 million (including $1.1 million of share-based
compensation). Selling, general and administrative (SG&A)
expenses came in at $46.9 million, down 2.7% from the year-ago
2014 Outlook Reiterated
Acorda reiterated its guidance for 2014. Ampyra sales are
expected to increase in 2014 to $328-$335 million.
On the fourth quarter call, Acorda stated that it expects
Zanaflex and Fampyra revenues to come around $25 million in 2014
and spend $60 million-$70 million on R&D.
Acorda received a setback earlier in the month when the U.S.
Food and Drug Administration (FDA) issued a Complete Response
Letter (CRL) to its New Drug Application (NDA) for Plumiaz nasal
spray. Acorda is looking to get Plumiaz approved for the
treatment of patients with epilepsy who experience cluster
seizures. Consequently, Acorda does not expect Plumiaz to receive
FDA approval in 2014.
Acorda will work closely with the FDA to address the issues
outlined in the CRL and resubmit the NDA.
Meanwhile, Acorda expects to move a once-daily formulation of
Ampyra into a phase III study for post-stroke deficits in the
second half of 2014. Acorda resumed enrolment in the phase Ib
trial on GGF2 which is being evaluated for chronic heart failure.
Additionally, Acorda completed the dose escalation stage of its
phase I trial on rHIgM22 for remyelination in multiple sclerosis
Acorda's first quarter results were mixed. Although earnings
missed expectations, revenues beat the same. We note that Acorda
is overly dependent on Ampyra for top-line growth. Hence, the
delay in Plumiaz's approval was disappointing. Acorda was
planning a potential launch of Plumiaz in 2014. We expect
investor focus to remain on Plumiaz updates.
Acorda carries a Zacks Rank #2 (Buy). A better-ranked stock in
the biotech sector is
Alexion Pharmaceuticals, Inc
), carrying a Zacks Rank #1 (Strong Buy).
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