Acorda Therapeutics (NASDAQ:ACOR) reported 3Q 2012 revenues and EPS of $77.4 million and $0.24, vs. the Consensus estimates of $75.1 million and $0.10, respectively. Sales of lead product Ampyra came in at $69M for the period, up 5% year over year, and above the Consensus expectations of $68M. Some health insurance companies have limited access to the drug in the past by requiring a rigorous walk test before patients can receive Ampyra. Based on information on the earnings call, reimbursement appears to be improving for Ampyra, which is used by patients with multiple sclerosis to help them walk better. The $280 million run-rate for the drug is impressive, and the company hopes to expand Ampyra’s label with potential new indications for cerebral palsy and other conditions in which patients have spasticity. Clinical trials for new indications are ongoing. Acorda reiterated its 2012 Ampyra sales guidance range of between $255 million and $275 million, however, the 3Q results suggest this guidance could be conservative and the company could deliver results at the high end of guidance or beat expectations. Additionally, the company lowered its expectations for R&D this year to $45 million from the prior run-rate of about $50 million. Higher Ampyra sales and lower costs could mean additional upside for the remainder of the years, hence analyst estimates are likely to rise. Expect ACOR to trade up today and through the remainder of the week as estimates are revised upwards. With cash of nearly $8 a share and growing, and Ampyra worth about $20 per share (using a conservative 3x multiple on revenues), ACOR appears undervalued and could approach the high-$20 level.
