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.
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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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.
Zacks Rank
Acorda currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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