Drug Trial's Success Buoys Acorda Stock

READERS WHO BOUGHT SHARES OF ACORDA THERAPEUTICS, a tiny biotech research
outfit we wrote about favorably last winter, were rewarded last week when
its stock roared to a 52-week high. And it looks as if Acorda -- and its
shareholders -- have still better days ahead.

Shares of Nasdaq-listed Acorda (ticker: ACOR) popped by nearly seven points,
or 31.3%, Monday, to close at 28.30 after the Hawthorne, N.Y., company
announced positive results from its second Phase 3 trial of Fampridine-SR,
designed to greatly improve the walking ability of people with multiple
sclerosis. By Thursday's close, the stock had surged to 31.69.

The company said that a significantly greater proportion of trial
participants taking the drug improved their walking speed, compared with
those who were given a placebo.

"About 85% of the people with MS experience some form of walking impairment,
affecting their ability to perform daily tasks," says CEO Ron Cohen. "And
over time, many MS patients require assistance walking, and ultimately may
be unable to walk."

When we last looked at Acorda ("Better the Second Time Around," Jan. 21), it
was midway through its second round of Phase 3 testing, which it hoped would
confirm positive results from a series of clinical trials in 2006. That
turned out to be precisely what happened.

The confirmation means that the company can apply for full approval of the
drug, which it plans to do early next year. A decision by the Food and Drug
Administration could come in late 2009 or early 2010.

In a research note to clients, analyst Phil Nadeau of Cowen & Co. says that
the trial results should provide enough data for the drug to win approval
and drive its use in 15% to 20% of all MS patients. Annual sales in the U.S.
alone could hit $300 million to $500 million.

"We think Fampridine is shaping up to be one of the most interesting product
launches for 2009-10 in small-cap biotech, and that this will drive
increasing interest in the ACOR share price. We expect ACOR to outperform
the market by 30%-plus over the next 12-18 months," Nadeau wrote.

With two other promising drugs in the pipeline aimed at treating
central-nervous system ailments, plus increasing sales of its Zanaflex
capsules for muscle spasms, Acorda's prospects look even healthier.

-- Neil A. Martin

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