Acorda Therapeutics (ACOR) is a commercial stage biotech company focused on neurological conditions. The company is best known for its multiple sclerosis [MS] treatments. Its two largest revenue streams are US sales of dalfampridine, a treatment intended for MS patients to walking ability, and tizanidine, a short acting manager of spasticity.
Despite recent strength across the biotech sector, Acorda has recently been trading at just over 10 times trailing twelve month earnings. With just two years of positive cash flows under its belt, generics are already taking a bite out of Acorda's tizanidine sales. Let's take a closer look at Acorda's pipeline and decide if the market has presented us a long-term opportunity, or a trap.