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Acorda Therapeutics: Managing The Transition

Oct. 04, 2021 4:35 PM ETAcorda Therapeutics, Inc. (ACOR)17 Comments


  • Today, we take our first look at Acorda Therapeutics which has two approved products on the market.
  • One of these is seeing increasing generic competition while the other is ramping up sales.  The company recently announced a significant workforce reduction to reduce costs.
  • Can Acorda manage this transition without diluting shareholders?  A full investment analysis follows in the paragraphs below.
  • I do much more than just articles at The Biotech Forum: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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Man is guaranteed only those rights which he can defend.”― Jack McCoy

Today, we take our first in-depth look at Acorda Therapeutics (NASDAQ:ACOR). The stock has not done its long-term shareholders much of a

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Comments (17)

@Bret Jensen what do you make out of today's news? finance.yahoo.com/...
Bret Jensen profile picture
@Agnee Tips Obviously a positive and reflected in big move in the stock today.
Looks like $ ACOR just wandered into the Buy and HOLD arena on it's own!

$2.50 PT in 23'.
@JohnnyM How good is the news?
@Agnee Tips ACOR news? You must take the time to check the ACOR news headlines as they develop and it's all good.

The company suddenly has done a 180- degree reversal as they were awarded a $16.5 million in the ALKS arbitration case and no longer have to pay royalties to ALKS! Huge news!

They voted down a share increase recently.

They announced today that they won't use shares to pay their DEC 22 debt obligation.

ACOR is a sweet Buy and HOLD which should push the stock well over the dollar mark and beyond in 23' as more revs hit the bottom line imo. jm
different ways to see it in a short time: seekingalpha.com/...
fffgp profile picture
07 Oct. 2021
In this week's 'deep dive' we look at Acorda Therapeutics (ACOR) and benefit from research published last week on this name over at our sister publication, The Insiders Forum. 15Sept2017
Hey Bret, thanks for your perspective. I agree the incertainty in sales growth and debt situation is holding back this company's MC valuation. I'm not saying this company should be valued at 600m, or even 200m... but at 50m seems like there is some opportunity for appreciation. The debt is convertible to shares and not due to 2024. The restricted cash is to service the interest and is expected to be paid in shares twice annually, essentially the dilution you are referring to is already priced in. Initially skeptical of thier claims to be run rate neutral in 2022 but with recent cost cutting now seems feasible. Combined with very much certain catalyst of increasing royalties to come back on balance sheet and expected foriegn partnership announcements I disagree that this equity isn't a buy at 4.5 a share.
Bret Jensen profile picture
@RobertB78 And that is what makes a market. Best
@Bret Jensen any thoughts on Acorda following sell of $ADMS?
Bret Jensen profile picture
@RobertB78 Doesn't change my view on it. Looks like SUPN got a good deal given their stock went up which usually doesn't happen to the acquiring firm in a deal. JMTC
The company has guided to be cash flow positive by year end 2022…Howmany small biotech companies you follow have 120 million in revenue and 50 mil market cap..and 12-15 mil / year royalty payments.. name few if you can please..
Bret Jensen profile picture
@vivek5959 I think you might be overlooking their debt. Obviously they have some cash burn concerns as well as I doubt they would be announcing layoffs otherwise. Wish you the best in your position, this one just isn't for me at this time.
@vivek5959 company also have royalty payment coming in 12-15 mil / year
@Bret Jensen I am aware about their debt Bret and that’s the reason it’s trading about $50 million market cap ..just like it going to go BK..i am not saying there is no risk associate but the risk reward looks compiling to me… X USA partnership is another catalyst and their arcus technology has a potential for future(just FYI their pipeline are not progressing they stopped it to conserve cash sometime back in 2019 if I not wrong
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