Acorda Therapeutics Overvalued

Tags: acor
23 Sep 3:32am
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Acorda Therapeutics (ACOR) is a biotechnology company whose mission is to develop and market therapies to restore neurological function in people with spinal cord injury (SCI), multiple sclerosis (MS) and related conditions of the nervous system. Core technologies developed by Acorda for SCI and MS have potentially broad applicability for other neurologic conditions.


The company released full data from its phase III MS-F204 clinical trial this month. The data is consistent with previous phase III data on Fampridine-SR showing improvement in walking speed and leg strength for the responder population.


The next step for Acorda is the NDA filing early in 2009. And, given the two positive pivotal trials, we believe the odds favor approval in 2010.


However, we remain unconvinced that Fampridine-SR will see significant use upon approval. And, at the current level, we believe Acorda's stock is overvalued and expectations for profitability and future cash flow are too high. Our target is $22.



Read the full analyst report on ACOR


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