Acorda Therapeutics Could Be a Stock to Watch in 2013

Acorda Therapeutics

has been off to a hot start in 2013. The stock is already up around 16 percent on the year and shares are trading near 52-week high levels at roughly $29. The company has a market cap of $1.16 billion at current levels and the stock has risen over 9 percent over the last year. Shares trade at a trailing P/E of 33.6, and a forward P/E of just over 43. The company's primary revenue driver is its approved product Ampyra, which is indicated in the United States as a treatment to improve walking in patients with multiple sclerosis (MS). The company also has an agreement with Biogen Idec

to market the product outside of the United States as Fampyra. Acorda also markets Zanaflax Capsules for the short-acting treatment and management of spasticity. Revenue has been surging in recent years, going from just under $55 million in fiscal 2009 to over $267 million in fiscal 2011. Revenue is projected to be up $303 million for fiscal 2012 and up almost 12 percent to more than $338 million in fiscal 2013. The company is exploring additional indications for its top selling drug Ampyra and this could drive the stock price higher in 2013. Acorda is looking at Ampyra as a potential treatment for Cerebal Palsy and stroke. A Phase II trial for the use of Ampyra in helping stroke patients walk is currently ongoing and results are expected to be published in the second-quarter. If the trial goes well and the drug moves into a Phase III trial, it should result in a move in the stock price. Wall Street analysts are moderate to positive on the name. The current median price target on the stock is $31.75 with a mean target of $30.55. The low target on Acorda is $25.00. Acorda was most recently downgraded by MKM partners on January 7, 2012 after being upgraded the year prior. The firm has a Neutral rating on the stock.