Acorda Therapeutics Inc (NASDAQ: ACOR)
Acorda Therapeutics is having a rough day in the market today, and for good reason. The company made an announcement early this morning that it will discontinue the development of a nasal spray that it was working on. Today, we’ll talk about the discontinuation, how the market reacted to the news, and what we can expect to see from ACOR moving forward. So, let’s get right to it…
ACOR Discontinues PLUMIAZ Development
Acorda therapeutics has been working on an investigational therapy that was designed for the treatment of seizure clusters in consumers that suffer from epilepsy. This investigational treatment was known as PLUMIAZ Nasal Spray. Unfortunately, data from ongoing clinical trials failed to demonstrate bioequivilence to Diastat rectal gel. This was a needed factor in order for the company to re-file its New Drug Application with the FDA under section 505(b)(2). In a statement, Ron Cohen, M.D., CEO and President at ACOR, had the following to offer:
“We are very disappointed by this outcome, and for those in the epilepsy community who experience seizure clusters. I want to thank the many clinicians, caregivers, people with epilepsy and their families involved with the PLUMIAZ clinical studies for their efforts to advance care for people with seizure clusters… We will continue to focus on development of our other high potential pipeline programs, including CVT-301 and tozadenant for Parkinson’s disease, and dalfampridine for post-stroke walking difficulty.”
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time there is positive news circulating with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when negative news is released, we can expect to see declines. In this particular case, the news surrounding ACOR was overwhelmingly negative. After all, the company has spent a massive amount of money developing PLUMIAZ, and the fact that development will be discontinued means that this money has now gone down the drain. As a result, we’re seeing a negative reaction in the value of the stock today. Currently (10:36), ACOR is trading at $25.27 per share after a loss of $0.44 per share or 1.71% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from Acorda Therapeutics. In the short term, I wouldn’t be surprised to see more declines. After all, the announcement that the company would be discontinuing development of PLUMIAZ is indeed negative news that will likely lead to fear among investors. However, the effects on the stock won’t be so dire. After all, ACOR has filed an NDA on the treatment that was rejected. So, the hopes weren’t too high. On the other hand, I am expecting to see overwhelmingly positive movement in the long run. When we talk about ACOR, we’re talking about a company that has strong treatments on the market already and an incredible pipeline to add to its value. The company’s team is a great one, and management keeps their eyes on the prize. While today’s news was far from positive, I’m expecting to see positive news surface in time, and Acorda Therapeutics will likely see gains in the long run as a result.
What Do You Think?
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