💥New Chapter 11 Bankruptcy - Acorda Therapeutics Inc. ($ACOR)💥

Biopharma company files bankruptcy with stalking horse purchaser.

Another day, another biopharma bankruptcy. This one has even got a stalking horse!

On April 1, 2024, NY-based Acorda Therapeutics Inc. ($ACOR) and five affiliates (collectively, the “debtors”) filed chapter 11 bankruptcy cases in the Southern District of New York (Judge Jones).

The debtors market two main products, both targeted at neurological disorders: Ampyra and Inbrija.

Ampyra is an extended-release tablet approved by the US Food and Drug Administration (“FDA”) in 2010 as a treatment to improve walking in adults with multiple sclerosis. Ampyra is marketed and distributed as Fampyra outside of the United States pursuant to a Collaboration and License Agreement with Biogen International GmbH (“Biogen”).

The debtors do not manufacture Ampyra or Fampyra. Patheon Inc is the company’s sole manufacturer and packager of Ampyra for sales in the United States while Alkermes Plc, through an arrangement with Biogen, is the sole manufacturer and packager of Fampyra for sales outside of the United States.

The debtors’ second product, Inbrija, is the first and only levodopa (dopamine replacement) inhalation powder approved by the FDA (in ‘18) for the treatment of episodic motor fluctuations in adults with Parkinson’s disease. The debtors rely on Catalent Massachusetts LLC (“Catalent”) for manufacturing of Inbrija. The debtors have entered into agreements to commercialize Inbrija in Spain, Germany, Latin America, and China.

So what went wrong? Well, for one, there was the ‘16 acquisition of Biotie Therapies Ltd for $363mm that turned out to be a total dud. The debtors acquired Biotie to gain access to the phase 3 Parkinson’s drug, Tozadenant. Unfortunately the clinical development for Tozadenant took quite a turn when five patients died during phase 3 studies and development had to be paused. Biotie never ended up generating any revenue.