After winning an arbitration, Acorda Therapeutics Inc. (NASDAQ: ACOR) shares increased 46.53% to trade at $0.4982 in pre-market at the time of the most recent check. The price of ACOR shares decreased by -4.36% on Friday to end at $0.34.
Which settlement has ACOR won?
AMPYRA license fees were the subject of a dispute between Acorda Therapeutics (ACOR) and Alkermes PLC (Nasdaq: ALKS), and a three-judge arbitration panel has now rendered a ruling (dalfampridine).
- Alkermes granted Acorda Therapeutics $15 million in addition to $1.5 million in prejudgment interest.
- Acorda Therapeutics is now free to employ alternative sources for the supply of AMPYRA, which the Company has previously secured, and ACOR will no longer be required to pay Alkermes any royalties on net sales for licensing and supply of AMPYRA as a result of the panel’s decision.
- With the help of this grant, ACOR will be able to purchase AMPYRA at more affordable market rates, greatly lowering our cost of goods and significantly raising the product’s worth to the business.
- Acorda Therapeutics will be able to continue offering Ampyra its typical high level of assistance, enabling it to serve as many MS patients as possible.
- After the parties were unable to settle their disagreement regarding licensing and supply fees following the 2018 expiration of an Alkermes patent pertaining to AMPYRA, ACOR filed an arbitration claim with the American Arbitration Association in July 2020.
The proposal to propose an increase in the number of authorized shares of ACOR stock has recently been removed by Acorda Therapeutics from the ballot for the special meeting of stockholders planned for November 4, 2022.
What other ideas has ACOR put forth?
The question of authorizing a reverse stock split is still up for a vote. With this plan, the Board of Directors of ACOR would have the authority to divide the stock of Acorda in reverse. Acorda Therapeutics (ACOR), which is likewise recommending that the Special Meeting be called back to provide for more time to gather proxies, will also be on the ballot.