Acorda Therapeutics, Inc.’s (ACOR) third quarter earnings of 34 cents per share surpassed the Zacks Consensus Estimate of 4 cents by a wide margin and the year-ago earnings of 20 cents.
Total revenues for the quarter were $105.9 million, up 24.8% from the year-ago quarter. Revenues surpassed the Zacks Consensus Estimate of $95 million.
Strong Quarter for Ampyra
The bulk of net product revenues at Acorda came from Ampyra, which generated $96.4 million in the reported quarter, up 24% from the year-ago period, benefiting from the company’s efforts to increase awareness about Ampyra. Ampyra revenues improved 10.3% on a sequential basis.
Ampyra is marketed in ex-U.S. markets under the trade name Fampyra by Biogen Idec (BIIB). Fampyra royalties grew 25% from the year-ago period to $2.5 million.
Zanaflex capsules and tablets recorded revenues of $4.5 million in the third quarter of 2014, up 66.7%.
Acorda’s research and development (R&D) expenses increased 20.3% to $16.6 million. Selling, general and administrative (SG&A) expenses came in at $47.8 million, up 13% from the year-ago period.
Ampyra Revenue Guidance Raised
Acorda updated its guidance for 2014. Ampyra revenues are now expected in the range of $345 million – $350 million, up from the earlier guidance of $328 million – $335 million.
The company continues to expect R&D spend of $60 million–$70 million and SG&A spend of $180 million–$190 million. R&D spend will increase significantly next year on the initiation of phase III studies and the advancement of pipeline candidates. Acorda is currently in the process of reprioritizing its development programs.
Pipeline Update
Acorda is working on refiling the new drug application for Plumiaz nasal spray for the treatment of patients with epilepsy who experience cluster seizures. The company had received a complete response letter (CRL) for Plumiaz earlier this year.
Meanwhile, Acorda expects to move a twice-daily formulation of Ampyra into a phase III study for post-stroke deficits by year end. A phase Ib trial on GGF2, which is being evaluated for chronic heart failure is ongoing with data due in the second half of 2015. Additionally, Acorda expects phase Ib data on rHIgM22 for remyelination in multiple sclerosis (MS) early next year.
Acorda completed its acquisition of Civitas Therapeutics in October – the deal has added Parkinson’s disease (PD) candidate, CVT-301 to Acorda’s portfolio. Acorda intends to move CVT-301 into a phase III program for the treatment of OFF episodes in PD patients by the first quarter of 2015 with the target of filing a new drug application in the U.S. by the end of 2016.
Our Take
Acorda’s third quarter results were better-than-expected with Ampyra sales picking up. We are positive on the company’s plans to reprioritize its pipeline. Meanwhile, we expect Acorda to expand its pipeline and product portfolio through in-licensing deals and product acquisitions. Investor focus will remain on the company’s plans for its pipeline which should be out in January.
Acorda is a Zacks Rank #3 (Hold) stock. Some better-ranked biotech stocks include Biogen, Medivation, Inc. (MDVN) and NewLink Genetics Corporation (NLNK). All three are Zacks Rank #1 (Strong Buy) stocks.
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