Acorda Therapeutics, Inc.’s ACOR second quarter earnings came in at 11 cents per share, well above the Zacks Consensus Estimate of a loss of 1 cent per share but below the year-ago earnings of 24 cents per share.
Total revenues for the quarter were $113.7 million, up 17.1% from the year-ago quarter, surpassing the Zacks Consensus Estimate of $107 million.
The Quarter in Detail
The bulk of net product revenues at Acorda came from Ampyra, which generated $105.5 million in the reported quarter, up 20.7% from the year-ago period and 14.2% on a sequential basis.
Acorda is currently facing several patent challenges from generic companies looking to bring their generic versions of Ampyra to market. The trial is scheduled for Sep 2016. Acorda has also responded to the two inter partes review (IPR) petitions. Acorda is currently evaluating a twice-daily formulation of Ampyra in a phase III study for post-stroke deficits.
Ampyra is marketed in ex-U.S. markets under the trade name Fampyra by Biogen BIIB. Fampyra royalties slipped 10.7% from the year-ago period to $2.5 million.
Zanaflex capsules and tablets recorded revenues of $3.2 million, down 27.3% from the year-ago period.
Acorda’s research and development (R&D) expenses increased 90.2% to $31.2 million. Selling, general and administrative (SG&A) expenses came in at $52.8 million, up 4.3% from the year-ago period.
Narrows Ampyra Guidance
Acorda narrowed its 2015 Ampyra revenue guidance range to $410 million – $420 million from $405 million – $420 million.
The company now expects R&D spend of $140 million – $150 million, down from the earlier guidance of $150 million – $160 million and reiterated its SG&A guidance of $180 million – $190 million.
The company said that it will be conducting three additional studies on Plumiaz nasal spray (treatment of patients with epilepsy who experience cluster seizures) before re-submitting the regulatory application, potentially in the first quarter of 2017. Acorda had received a complete response letter (CRL) for Plumiaz last year.
Our Take
Acorda’s second quarter results were better-than-expected with the company beating on the top- and bottom-line. Moreover, Ampyra sales improved on a sequential basis. With Ampyra facing several patent challenges, focus increases on the company’s pipeline development efforts and ability to bring new products to market. The Ampyra patent challenge situation will remain an overhang with a trial scheduled for Sep 2016.
Acorda is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the healthcare sector include Ligand Pharmaceuticals Inc. LGND and AMAG Pharmaceuticals, Inc. AMAG are better-ranked stocks in the health care sector – both hold a Zacks Rank #1 (Strong Buy).
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