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Acorda Soars, Settles Ampyra Patent Dispute with Allergan

Acorda Therapeutics, Inc.ACOR revealed through an 8K filing that it has entered into a settlement agreement with Allergan plc AGN to resolve the patent litigation related to its flagship product, Ampyra. While Acorda's shares jumped 12% on the news, Allergan's shares were down 3.3%.

Allergan can start selling a generic version of Ampyra in the U.S. at a specified date in 2027 or earlier under certain circumstances. We note that the latest expiring patent protecting Ampyra listed in the FDA's Orange Book is May 2027.

Acorda said that the settlement with Allergan, however, does not resolve patent infringement lawsuits with other companies seeking FDA approval for their generic versions of Ampyra.

We remind investors that Acorda remains entangled in patent infringement litigation for Ampyra with several companies including Teva Pharmaceutical Industries Ltd. TEVA . The U.S. District Court for the District of Delaware has scheduled a Markman hearing for Mar 2016 and a trial date for Sep 2016. Moreover, patent infringement lawsuits related to Ampyra are ongoing in the EU.

The settlement with Allergan comes as a relief for Acorda since it has put off the generic threat from Allergan till 2027. We note that positive patent news related to Ampyra has been boosting the company's shares. In Aug 2015, Acorda's shares had gone up when the United States Patent and Trademark Office Patent Trials and Appeal Board declined to institute the inter partes review related to a couple of patents covering Ampyra.

Ampyra is currently approved in the U.S. for the improvement of walking in multiple sclerosis patients. Ampyra is available outside the U.S. under the trade name Fampyra. Acorda has a licensing agreement with Biogen Inc. BIIB for Fampyra in markets outside the U.S.

Currently, Acorda is working on expanding Ampyra's label into additional indications.

Acorda currently carries a Zacks Rank #3 (Hold). Teva is a better-ranked stock in the health care sector carrying a Zack Rank #2 (Buy).

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ALLERGAN PLC (AGN): Free Stock Analysis Report

ACORDA THERAPT (ACOR): Free Stock Analysis Report

TEVA PHARM ADR (TEVA): Free Stock Analysis Report

BIOGEN INC (BIIB): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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