Acorda Misses on Earnings by a Penny

Acorda Therapeutics Inc.’s (ACOR) second quarter 2013 earnings (including share-based compensation charges) of 9 cents per share were a penny short of the Zacks Consensus Estimate and 30.8% below the year-ago earnings.

Quarterly revenues increased 15.1% to $87.1 million, well above the Zacks Consensus Estimate of $80 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 17.3% from the year-ago period. Ampyra revenues rebounded on a sequential basis as well reflecting underlying product demand and a return to normal inventory levels.

Acorda has a licensing agreement with Biogen Idec (BIIB) 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 declined 12% from the year-ago period to $2.2 million.

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 for post-stroke deficits, especially walking improvement. The study is scheduled to commence in the second quarter of 2014. As far as evaluating Ampyra for cerebral palsy is concerned, Acorda is yet to come to a decision regarding the same.

Zanaflex capsules and tablets recorded revenues of $4.8 million in the second quarter of 2013, up 4.3%. Acorda has authorized Actavis, Inc. (ACT) to commercialize the generic version of Zanaflex.

Acorda’s research and development (R&D) expenses increased 4.8% to $13.2 million. Selling, general and administrative (SG&A) expenses came in at $48 million, up 8.6% from the year-ago period.

Guidance Maintained

Acorda maintained its Ampyra revenue guidance of $285 million to $315 million. Acorda also reiterated its adjusted SG&A and R&D expense guidance. While the former is expected in the range of $170– $180 million, the latter is expected in the range of $60– $70 million. The guidance does not include costs related to the NeurogesX, Inc. acquisition.

Acorda currently carries a Zacks Rank #3 (Hold). At present, companies like Biogen and Actelion Ltd. (ALIOF) look attractive. Both are Zacks Rank #1 (Strong Buy) stocks. Actavis also looks well-positioned with a Zacks Rank # 2 (Buy).

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