Acorda Therapeutics, Inc.
) recently announced that data from preclinical studies
evaluating glial growth factor 2 (GGF2) showed promising recovery
of sensorimotor function in a preclinical model of stroke. The
dose ranging studies evaluated various treatment regimes with
different frequency of administration. The data was presented at
the American Heart Association/American Stroke Association
International Stroke Conference.
GGF2 is being evaluated for various indications including heart
failure and peripheral nerve injury. The company completed a
phase I study evaluating GGF2 in heart failure patients in late
2012. GGF2 is undergoing preclinical studies for peripheral nerve
We are pleased with the company's efforts to develop its
pipeline. However, most of the candidates are in early stages of
development. Consequently they are quite a few years away from
entering the market, if at all. We are also concerned about the
Acorda's dependence on Ampyra for growth.
In Jan 2013, Acorda announced that Ampyra revenues (unaudited)
were approximately $73 million in the fourth quarter of 2012 and
$266 million in 2012. The company expects Ampyra revenues in the
range of $285 million - $315 million in 2013.
While we are encouraged by the improvement in Ampyra's
performance and the 2013 Ampyra guidance, it remains to be seen
whether the trend can be sustained. We note that Ampyra sales
were below expectations in the first two quarters of 2012.
Acorda carries a Zacks Rank #4 (Sell) in the short run. Pharma
stocks that currently look attractive include companies like
Eli Lilly and Company
). All the three companies carry a Zacks Rank #2 (Buy).
ACORDA THERAPT (ACOR): Free Stock Analysis
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