Acorda Shares Tumble After Court Ruling

  By Micah Maidenberg

A federal court agreed that patents Acorda Therapeutics Inc. (ACOR) holds for a multiple sclerosis drug are invalid, sending the pharmaceutical company's shares sharply lower because competitors have signaled they will create a generic version of it.

The U.S. Court of Appeals for the Federal Circuit voted two to one to affirm a 2017 decision issued by the federal court in Delaware that invalidated four patents Acorda holds for the drug Ampyra, which helps adults with multiple sclerosis walk better, according to a copy of the ruling.

Acorda's stock had fallen more than 21% to $21.60 a share by the early afternoon. The company reported $542 million in net sales of Ampyra in 2017. Its total 2017 revenue was $588 million. Acorda anticipated between $300 million and $350 million in sales from the drug this year.

Three pharmaceutical companies--Roxane Laboratories, Mylan Pharmaceuticals Inc. and a unit of Teva Pharmaceuticals--have submitted applications to the U.S. Food and Drug Administration to market generic versions of Ampyra, according to the ruling.

In 2014, Acorda and a unit of Alkermes plc sued Roxane, Mylan and the Teva unit in Delaware, alleging infringement related to the patents. The court ultimately ruled three years later the patents were "invalid for obviousness," a decision the appeals court upheld.

"We are disappointed by the Court's decision, as we continue to believe that our Ampyra patents reflected true invention and were valid," Acorda Chief Executive Ron Cohen said in prepared remarks. He said the company may appeal the decision. A spokesman for the company had no further comment on the ruling.

In a note to clients, Janney Montgomery Scott analyst Ken Trbovich said he expects the "nearly immediate launch of generic competition that will rapidly capture more than 90% of Acorda's Ampyra prescription volume and lead to the loss of nearly all of Ampyra's revenues over the coming months."

Roxane Laboratories, part of Hikma Pharmaceuticals Plc, Mylan and Teva couldn't immediately be reached for comment.

Acorda is now focusing its efforts on Inbrija, a drug for people with Parkinson's disease. The drug still needs FDA approval, which could come as soon as Oct. 5.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

September 10, 2018 13:43 ET (17:43 GMT)

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