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Acorda (ACOR) to Reduce Workforce, Focus on Product Pipeline
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Acorda Therapeutics, Inc. recently announced plans to reduce its workforce by approximately 20%.
The workforce reduction, which is expected to be completed in Apr 2017, is part of the company’s strategy to significantly lower its operating expenses. The company expects this move to result in annualized cost savings of more than $21 million.
Acorda recently lost certain patents for its multiple sclerosis (MS) drug, Ampyra. Hence, it expects the cost reduction will enable it to focus on its two late-stage studies for Parkinson's disease – CVT-301 and tozadenant. The company also intends to forge ahead with the commercial launch of CVT-301. Please note that the company plans to file a new drug application (NDA) for CVT-301 with the FDA in the second quarter of 2017.
Acorda’s shares have underperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Shares of the company lost 9.6%, while the industry registered an increase of 3.6%.
We note that the District Court for the District of Delaware invalidated four patents of Ampyra last week, making way for generic versions of the drug by companies including Mylan Inc and Roxane Laboratories Inc. However, the company appealed the ruling, seeking a court declaration that its patents on the drugs were valid.
We remind the investors that a total of 10 generic drug manufacturers have submitted abbreviated new drug applications (ANDA) to the FDA, seeking marketing approval for generic versions of Amypra. In 2015 and 2016, Acorda reached settlement agreements with seven of the generic companies, including Allergan plc and Par Pharmaceuticals.
Apart from Mylan and Roxane, Teva Pharmaceutical Industries (TEVA - Free Report) Ltd. refused any settlement agreement with Acorda for the patent litigation of Ampyra.
Ampyra is Acorda’s flagship product, which is currently approved in the U.S. for the improvement of walking in multiple sclerosis patients. It is available outside the U.S. under the trade name Fampyra. The drug registered sales of $492.8 million in 2016, reflecting an increase of 12.8%. Acorda has a licensing agreement with Biogen (BIIB - Free Report) for marketing Fampyra outside the U.S.
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Acorda (ACOR) to Reduce Workforce, Focus on Product Pipeline
Acorda Therapeutics, Inc. recently announced plans to reduce its workforce by approximately 20%.
The workforce reduction, which is expected to be completed in Apr 2017, is part of the company’s strategy to significantly lower its operating expenses. The company expects this move to result in annualized cost savings of more than $21 million.
Acorda recently lost certain patents for its multiple sclerosis (MS) drug, Ampyra. Hence, it expects the cost reduction will enable it to focus on its two late-stage studies for Parkinson's disease – CVT-301 and tozadenant. The company also intends to forge ahead with the commercial launch of CVT-301. Please note that the company plans to file a new drug application (NDA) for CVT-301 with the FDA in the second quarter of 2017.
Acorda’s shares have underperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Shares of the company lost 9.6%, while the industry registered an increase of 3.6%.
We note that the District Court for the District of Delaware invalidated four patents of Ampyra last week, making way for generic versions of the drug by companies including Mylan Inc and Roxane Laboratories Inc. However, the company appealed the ruling, seeking a court declaration that its patents on the drugs were valid.
We remind the investors that a total of 10 generic drug manufacturers have submitted abbreviated new drug applications (ANDA) to the FDA, seeking marketing approval for generic versions of Amypra. In 2015 and 2016, Acorda reached settlement agreements with seven of the generic companies, including Allergan plc and Par Pharmaceuticals.
Apart from Mylan and Roxane, Teva Pharmaceutical Industries (TEVA - Free Report) Ltd. refused any settlement agreement with Acorda for the patent litigation of Ampyra.
Ampyra is Acorda’s flagship product, which is currently approved in the U.S. for the improvement of walking in multiple sclerosis patients. It is available outside the U.S. under the trade name Fampyra. The drug registered sales of $492.8 million in 2016, reflecting an increase of 12.8%. Acorda has a licensing agreement with Biogen (BIIB - Free Report) for marketing Fampyra outside the U.S.
Acorda Therapeutics, Inc. Price
Acorda Therapeutics, Inc. Price | Acorda Therapeutics, Inc. Quote
Zacks Rank
Acorda currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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