This Biotech Stock Rocketed 15% On Rumors Biogen C
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Posted On: 01/21/2018 8:31:47 PM
This Biotech Stock Rocketed 15% On Rumors Biogen Could Buy It
ALLISON GATLIN10:27 AM ET
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Acorda Therapeutics (ACOR) rocketed as much as 15% Friday on rumors it could be a takeover target for Biogen (BIIB) as well as a slew of Asian drugmakers.
By the closing bell on the stock market today, Acorda surged 8.8% to 27.20, after earlier soaring to 28.60. Biogen lifted a fraction, near 345.20.
The rumors emerge a week after the annual J.P. Morgan Healthcare Conference when Acorda said it had boosted the potential for an inhaled Parkinson's disease drug known as Inbrija to $800 million in the U.S.
Inbrija has been a sore point for Acorda in recent history, though. In August, the Food and Drug Administration refused to file Acorda's application for Inbrija, saying it was not sufficiently complete to garner a review.
That was a hit to Acorda's already thin pipeline. Last April, Acorda put four drugs on the back burner to focus on Inbrija and a drug called tozadenant after a judge invalidated several patents on key multiple sclerosis drug Ampyra.
But Tozadenant also has been problematic for Acorda. The drug was being tested as a Parkinson's disease therapy when five patients died in late-stage trials. Acorda paused enrollment in long-term safety trials and increased monitoring.
IBD'S TAKE: Biogen stock gained steam this week as its Relative Strength Rating rose to a 72 out of a best-possible 99, up from an earlier rating of 68. This metric shows how a stock's price performance over the trailing 52 weeks compares to the rest of the market. See what went into Biogen's rating by visiting IBD Data Stories.
Already Acorda has been subject to pressure for a sale. Following the FDA's refusal to file for Inbrija last year, a hedge fund acquired a 16.5% stake in the biotech and then urged it to seek a buyer.
In a U.S. Securities and Exchange Commission filing, Acorda said it wouldn't be the best time to pursue a sale as it would not be able to "adequately compensate shareholders for the potential benefits of the company's late-stage program."
Today, Acorda has a market cap near $1.3 billion. As of its third quarter ended Sept. 30, Biogen had more than $3.5 billion in cash, equivalents and securities on hand. It's possible Ampyra would dovetail well with Biogen's large MS franchise.
Biogen declined to comment to Investor's Business Daily. Acorda didn't immediately return an email requesting comment.
ALLISON GATLIN10:27 AM ET
Reprints
Acorda Therapeutics (ACOR) rocketed as much as 15% Friday on rumors it could be a takeover target for Biogen (BIIB) as well as a slew of Asian drugmakers.
By the closing bell on the stock market today, Acorda surged 8.8% to 27.20, after earlier soaring to 28.60. Biogen lifted a fraction, near 345.20.
The rumors emerge a week after the annual J.P. Morgan Healthcare Conference when Acorda said it had boosted the potential for an inhaled Parkinson's disease drug known as Inbrija to $800 million in the U.S.
Inbrija has been a sore point for Acorda in recent history, though. In August, the Food and Drug Administration refused to file Acorda's application for Inbrija, saying it was not sufficiently complete to garner a review.
That was a hit to Acorda's already thin pipeline. Last April, Acorda put four drugs on the back burner to focus on Inbrija and a drug called tozadenant after a judge invalidated several patents on key multiple sclerosis drug Ampyra.
But Tozadenant also has been problematic for Acorda. The drug was being tested as a Parkinson's disease therapy when five patients died in late-stage trials. Acorda paused enrollment in long-term safety trials and increased monitoring.
IBD'S TAKE: Biogen stock gained steam this week as its Relative Strength Rating rose to a 72 out of a best-possible 99, up from an earlier rating of 68. This metric shows how a stock's price performance over the trailing 52 weeks compares to the rest of the market. See what went into Biogen's rating by visiting IBD Data Stories.
Already Acorda has been subject to pressure for a sale. Following the FDA's refusal to file for Inbrija last year, a hedge fund acquired a 16.5% stake in the biotech and then urged it to seek a buyer.
In a U.S. Securities and Exchange Commission filing, Acorda said it wouldn't be the best time to pursue a sale as it would not be able to "adequately compensate shareholders for the potential benefits of the company's late-stage program."
Today, Acorda has a market cap near $1.3 billion. As of its third quarter ended Sept. 30, Biogen had more than $3.5 billion in cash, equivalents and securities on hand. It's possible Ampyra would dovetail well with Biogen's large MS franchise.
Biogen declined to comment to Investor's Business Daily. Acorda didn't immediately return an email requesting comment.
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