Acorda Beats Q4 Earnings Estimates; Ampyra Sales Grow - Analyst Blog
Acorda Therapeutics, Inc.’s (ACOR) fourth quarter earnings of 33 cents per share surpassed both the Zacks Consensus Estimate and the year-ago earnings of 15 cents per share.
Acorda Therapeutics Inc. - Earnings Surprise | FindTheBest
Total revenues for the quarter were $117.9 million, up 27.3% from the year-ago quarter. Revenues surpassed the Zacks Consensus Estimate of $111 million.
In 2014, Acorda reported earnings of 80 cents per share, beating the Zacks Consensus Estimate of 54 cents and the year-ago earnings of 42 cents per share. Total revenues in 2014 came in at $401.5 million, up 19.3% from the year-ago quarter and above the Zacks Consensus Estimate of $393 million.
Strong Quarter for Ampyra
The bulk of net product revenues at Acorda came from Ampyra, which generated $109.9 million in the reported quarter, up 29.9% from the year-ago period, benefiting from the company’s efforts to increase awareness about the drug. Ampyra revenues improved 14% on a sequential basis.
The company said that it has received eight Paragraph IV certification notice letters stating that some companies have submitted Abbreviated New Drug Applications (ANDA) in the U.S. requesting permission to manufacture and market generic versions of Ampyra.
Ampyra is marketed in ex-U.S. markets under the trade name Fampyra by Biogen Idec (BIIB). Fampyra royalties grew 4.5% from the year-ago period to $2.3 million.
Zanaflex capsules and tablets recorded revenues of $3.2 million in the fourth quarter of 2014, up 3.1%.
Acorda’s research and development (R&D) expenses increased 88.9% to $24.1 million. Selling, general and administrative (SG&A) expenses came in at $49.5 million, up 19.5% from the year-ago period.
2015 Guidance
Acorda expects 2015 Ampyra revenues in the range of $405 million to $420 million. The company expects Zanaflex franchise and ex-U.S. Fampyra revenues of approximately $25 million.
The company continues to expect R&D spend of $150 million to $160 million and SG&A spend of $180 million to $190 million. The increased R&D expenses in 2015 will be primarily directed to phase III studies on dalfampridine and CVT-301.
Pipeline Update
Acorda is working on refiling the new drug application for Plumiaz nasal spray for the treatment of patients with epilepsy who experience cluster seizures. The company had received a complete response letter (CRL) for Plumiaz last year.
Meanwhile, Acorda moved a twice-daily formulation of Ampyra into a phase III study for post-stroke deficits last year. Additionally, Acorda expects to start a second phase I study on rHIgM22 for remyelination in multiple sclerosis (MS) this year.
Acorda completed its acquisition of Civitas Therapeutics in Oct 2014 – the deal has added Parkinson’s disease (PD) candidate, CVT-301, to Acorda’s portfolio. In Dec 2014, Acorda initiated a phase III program on the candidate for the treatment of OFF episodes in PD patients.
Our Take
Acorda’s fourth quarter results were better than expected with Ampyra sales picking up. We are also positive on the company’s progress with its pipeline. However, we remain concerned about the fact that several companies are looking to get their generic versions of Ampyra approved. Sooner-than-expected entry of generics will be a huge blow to the company.
Meanwhile, we expect Acorda to expand its pipeline and product portfolio through in-licensing deals and product acquisitions. Investor focus will remain on the company’s pipeline going forward.
Acorda is a Zacks Rank #3 (Hold) stock. Better-ranked biotech stocks include Achillion Pharmaceuticals, Inc. (ACHN) and BioMarin Pharmaceutical Inc. (BMRN). Both stocks carry a Zacks Rank #2 (Buy).
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