Ampyra Settlement Surprising for Acorda (ACOR); May be Strategic Move by Actavis - Leerink

Leerink affirmed Acorda Therapeutics (Nasdaq: ACOR) at Market Perform with a price target of $35 after the company announced that it entered into a settlement agreement with Actavis Laboratories FL, Inc., to resolve pending patent litigation brought by the Company against Actavis involving Ampyra (dalfampridine) Extended-Release Tablets.

Analyst Paul Matteis commented, This morning ACOR announced it has settled its Ampyra litigation with Actavis. As a result of the settlement agreement, Actavis will be permitted to market a generic version of Ampyra in the US in 2027, the year of expiry for Ampyra's latest expiring orange book listed patent. The news comes as a significant surprise as investors perceive ACOR as having limited negotiating power with the presence of 10 total ANDA filers and a Markman Hearing slated for 3/2016. Moreover, while unconfirmed, there is some speculation that AGN may have been "first-to-file," as Actavis stated that it "believes it may be first applicant" for Ampyra in a July 2014 press release. Conversely, it is also possible that Actavis's settlement could strategically be driven by a pending sale of its generic business to TEVA (OP), which is also an ANDA filer in the Ampyra case. Eliminating one of two filings for the same product may be a strategic move ahead of FTC review/approval of the deal, or could just be a way to save money by avoiding redundant legal expenses.

For an analyst ratings summary and ratings history on Acorda Therapeutics, Inc. click here. For more ratings news on Acorda Therapeutics, Inc. click here.

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