U.S. Markets open in 48 mins.

Acorda sinks after insurance provider questions MS drug

Acorda Therapeutics (ACOR) is retreating after Group Health, which provides health insurance to over 600,000 people in the Northwest, questioned the necessity of the company's multiple sclerosis treatment, Ampyra. Following Group Health's September 12 meeting, the non-profit organization wrote on its website that Ampyra "provides outcomes of questionable clinical significance and lacks long-term safety data." Moreover, the organization stated that a "medical necessity review" of Ampyra must be conducted. It's unclear exactly when these statements were posted on Group Health's website. As of August 2012, Acorda anticipated that it would generate $255M-$275M in revenue from Ampyra. Analysts on average expect the company to generate total revenue of $299.35M this year. In late morning trading, Acorda fell $1.03, or 3.86%, to $25.63.