Acorda Therapeutics, Inc. (ACOR - Free Report) announced second-quarter 2018 earnings per share of 140 cents, comprehensively beating the Zacks Consensus Estimate of 75 cents. Moreover, the figure came ahead of the year-ago bottom line of 29 cents.
Acorda generated total revenues of $153.3 million in the second quarter, also surpassing the Zacks Consensus Estimate of $128.7 million.
Sales of Acorda rose 9.9% year over year, driven by the strong sales of the company’s multiple sclerosis drug Ampyra. Shares were up 5.05% following its earnings release on Aug 2.
The stock has rallied 21.3% so far this year against the industry’s decrease of 4%.
Quarter in Detail
Majority of Acorda’s net product revenues were contributed by the company’s key drug Ampyra, which raked in sales of $150.3 million in the reported quarter.
However, Ampyra is likely to face generic competition from mid-2018 onward in the United States. However, the company is still heavily dependent on the drug for growth.
Acorda is facing patent challenges for Ampyra in the United States. Several companies have filed abbreviated new drug applications (ANDAs) for their generic versions of Ampyra.
However, in July, the company's plea for a preliminary injunction to prevent generics from launching at risk was denied by the Federal Court.
Notably, in the quarter under review, royalty revenues declined 34% to $2.9 million from the year-ago figure of $4.4 million.
Acorda’s research and development (R&D) expenses (excluding share-based compensation expenses) decreased 49.4% year over year owing to corporate restructuring, which occurred in 2017.
Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) also dipped 2.2% year over year.
During the quarter under discussion, Acorda announced that the European Medicines Agency has accepted the marketing application for its Parkinson’s candidate, Inbrija (levodopa inhalation powder). The company is seeking approval for Inbrija as a treatment option for symptoms of OFF periods in people with Parkinson’s, who are receiving a carbidopa / levodopa regimen. A decision in the EU is expected by the end of 2018.
Notably, in February, the FDA accepted the new drug application (NDA) for Inbrija’s review. A response from the FDA is expected on Oct 5. The acceptance was supported by positive safety and efficacy data from a phase III SPAN-PD study as well as results from the two long-term safety studies on PD patients.
The company maintained its Ampyra net sales view for 2018 in the range of $330-$350 million.
The company continues to retain its R&D and SG&A expenses (excludingshare-based compensation) for the current year in the band of $100-$110 million and $170-$180 million, respectively.
Acorda expects positive cash balance in excess of $300 million by the end of 2018.
Zacks Rank & Other Key Picks
Acorda currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the health care sector include Eagle Pharmaceuticals, Inc. (EGRX - Free Report) , Gilead Sciences, Inc. (GILD - Free Report) and Vanda Pharmaceuticals Inc. (VNDA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Eagle Pharmaceuticals’ earnings estimates have been moved 15.1% north for 2018 and 26% for 2019 over the past 60 days. The stock has soared 40.8% year to date.
Gilead Sciences’ earnings estimates have been revised 7.7% upward for 2018 and 2.2% for 2019 over the past 60 days. The stock has gained 8.4% year over year.
Vanda Pharmaceuticals’ earnings estimates have been raised 11.1% for 2018 and 3.9% for 2019 over the past 60 days. The stock has surged 42.8% so far this year.
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