Acorda Therapeutics files for $86.25 million initial public offering

By Ted A. Knutson

Washington, Oct. 5 - Acorda Therapeutics, Inc. filed for an $86.25 million initial public offering in an S-1 registration with the Securities and Exchange Commission.

The Hawthorne, N.Y.-based firm is a commercial-stage biopharmaceutical company dedicated to the identification, development and commercialization of therapies that improve neurological function in people with multiple sclerosis, or MS, spinal cord injury and other disorders of the central nervous system.

Its marketed product, Zanaflex capsules, is approved by the Food and Drug Administration for the management of spasticity while Acorda's lead product candidate, Fampridine-SR, is in a phase 3 clinical trial for the improvement of walking ability in people with MS.

The company had its first sales of Zanaflex in the first six months of this year. Sales were $478,000 with a net loss of $18.48 million for the period.

Banc of America Securities LLC is the lead manager for the offering. Co-managers are Lazard Capital Markets, Piper Jaffray and SG Cowen and Co.

IPO proceeds are being targeted for sales, marketing, clinical development and general corporate purposes.

MPM/BB Bioventure Group is the largest shareholder with 1.64 million shares, 12.1% of the pre-IPO total. The Elan Corp. is second with 998,000 shares for 7.4% of the total.

Acorda bought the rights to Zanaflex capsules and tablets from Elan in 2004. Elan is the manufacturer of Zanaflex for Acorda.

Acorda will apply to list its common stock on the Nasdaq National Market under the symbol "ACOR."

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