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Acorda to Gain From Inbrija Sales and Neurological Pipeline

Zacks Equity Research

On Apr 10, we issued an updated research report on Acorda Therapeutics, Inc. ACOR.

Acorda received a huge boost when the FDA approved its Parkinson's disease (PD) drug, Inbrija (levodopa inhalation powder), late last December. Following this nod, the product became the first and the only approved inhaled levodopa for treating OFF periods in patients suffering Parkinson’s and receiving a carbidopa / levodopa regimen.

In February this year, Inbrija was officially launched in the United States. The drug is also under review in the EU with a decision expected anytime soon.

Notably, more than 350,000 people in the United States are suffering OFF periods related to Parkinson’s disease. Inbrija will help address the large unmet medical need for those afflicted with the ailment. Acorda estimates Inbrija’s market opportunity to exceed $800 million in the United States.

Shares of Acorda have lost 17.9% in the year so far against the industry’s increase of 9.8%.


 

As Inbrija was launched during the first quarter of 2019, Acorda is yet to generate substantial revenues from the drug. Till now, majority of Acorda’s net product revenues came from the company’s key multiple sclerosis (MS) drug, Ampyra. However, sales of the medicine have been declining sharply year over year due to stiff competition from Mylan's MYL unveiled authorized generic version.

Notably, on fourth-quarter 2018 conference call, the company stated that Ampyra sales will see a persistent decline in the quarters ahead this year.

As a result, Inbrija’s successful commercialization is crucial for long-term growth at Acorda, especially as generic rivalry looms large on Ampyra. It remains to be seen if Inbrija can deliver the desired results and be a perfect replacement for Ampyra.

Apart from these two drugs, Acorda has a pipeline of novel neurological therapies, addressing a wide range of disorders. The company is evaluating two phase II candidates — SYN120 and BTT1023 — for the treatment of PD dementia and primary sclerosing cholangitis, respectively.

Another early-stage candidate, CVT-427 — an inhaled zolmitriptan, is being evaluated for the treatment of acute migraine, using Acorda’s ARCUS drug delivery technology.

Approval of these candidates provides long-term growth opportunities for the company, given the lucrative market that is being targeted.

Acorda Therapeutics, Inc. Price and Consensus

Acorda Therapeutics, Inc. Price and Consensus | Acorda Therapeutics, Inc. Quote

Zacks Rank & Stocks to Consider

Acorda currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the healthcare sector include Kamada Ltd. KMDA and PDL BioPharma, Inc. PDLI, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kamada’s earnings estimates have moved 34.3% north for 2019 and 5% for 2020 over the past 60 days. The stock has rallied 19% so far this year.

PDL BioPharma’s earnings estimates have been revised 100% upward for 2019 and 30% for 2020 over the past 60 days. The stock has surged 32.7% year to date.

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Acorda Therapeutics, Inc. (ACOR) : Free Stock Analysis Report
 
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