MKM senior analyst expects significant run in ACOR's stock price
TLSR: What company would you like to speak about next?
JL: I'll touch on Acorda Therapeutics Inc. (ACOR), a specialty pharma company with a market cap of nearly $900M. It markets one primary product, Ampyra (dalfampridine), which is approved to help patients with multiple sclerosis [MS] walk better. The product is on track to sell more than $250M in its second full year on the market. The drug is sold by Biogen Idec Inc. (BIIB) in Europe, and it is doing extremely well there, picking up a lot of steam.
We view MS as an underserved market. One of the company's biggest advantages is that it can charge high prices for its drugs, due to the severity of that disease and because there is no cure for it. Anything that can help MS patients is in demand by both physicians and patients.
Acorda stock has had an overhang due to a post-approval trial that the company just reported. The trial compared the approved 10 milligram (MG) dose and a 5 mg dose, which previously had not been studied in a big trial. With that data now behind them, we think the stock could have a significant run in H2/12.
The company hopes to expand the Ampyra market out of MS, targeting several other diseases. In the near term, the company is looking at the drug in stroke and cerebral palsy. That could multiply potential market penetration. We expect the cerebral palsy data at the end of 2012, and that indication could potentially double the market opportunity. We could see results from a stroke trial in early 2013. This, too, would be a huge indication for the drug. There will be a decent amount of data and a really good opportunity for Acorda's value to grow over the next 6-12 months.