Market Overview

Acorda's Prospects Remain Dubious Despite Inbrija Approval, Says Bearish Raymond James

Acorda's Prospects Remain Dubious Despite Inbrija Approval, Says Bearish Raymond James

Acorda Therapeutics Inc (NASDAQ: ACOR) announced FDA approval for its Parkinson's drug Inbrija Monday, boosting the stock in premarket trading. Not everyone is sold on the product’s prospects.

The Analyst 

Raymond James analyst Laura Chico maintained an Underperform rating on the stock.

The Thesis

Raymond James had anticipated a delay of Inbrija's approval following the three-month pushback of its PDUFA date and submission of a Refuse to File Letter.

“Our confidence in a first-cycle Inbrija approval was admittedly not strong, so hats off indeed to the ACOR team for reaching an approval,” Chico said in a Monday note. (See her track record here.) 

The label exclusion of patients with chronic lung disease is seen to limit the drug's market share, but pricing could offset the moderated sales, the analyst said.

Until the official price disclosure near the first-quarter commercial launch, Chico models a doubled rate of $2,600 per quarter based on neurology approvals.

“The net of these changes drops our revenue estimates, necessitates incorporating multiple financings and yields an estimated fair value for ACOR shares [of] $9/share,” she said.

“Bottom line, while we commend the team for getting the approval, the road ahead remains challenging.”

The analyst dropped revenue forecasts to $23 million in 2019 and $82 million, $144 million and $184 million, respectively, in the following three years.

“While ACOR has the benefit of an experienced field force, midcap commercial launches have proven challenging in recent months,” Chico wrote, noting trouble in TESARO Inc (NASDAQ: TSRO)’s Zejula and Dova Pharmaceuticals Inc (NASDAQ: DOVA)’s Doptelet.

Price Action

Acorda shares were trading up slightly at $13.78 at the time of publication Wednesday. 

Related Links:

Bluebird Bio's Competitive Advantage Is Underappreciated, Raymond James Says In Bullish Initiation

Spectrum Pharma Shares Plunge As FDA Refuses Breakthrough Designation For Lung Cancer Drug

Latest Ratings for ACOR

Aug 2019DowngradesBuyNeutral
Aug 2019MaintainsHold
Aug 2019ReiteratesNeutral

View More Analyst Ratings for ACOR
View the Latest Analyst Ratings

Posted-In: Laura Chico Raymond JamesAnalyst Color Biotech Reiteration Analyst Ratings General Best of Benzinga


Related Articles (ACOR + DOVA)

View Comments and Join the Discussion!

Latest Ratings

PNRJefferiesInitiates Coverage On
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Bear in the Woods: Buyers Might Still Be Hard to Find Coming Back From Holiday

Thailand Breaks Medical Marijuana Barrier In Southeast Asia