Acorda Therapeutics (ACOR) Stock Is Climbing On Milestone Payment News

Acorda Therapeutics ACOR Stock News

Acorda Therapeutics Inc (NASDAQ: ACOR) is screaming for the top in the market this morning, and for good reason. The company issued an SEC filing informing investors that it will soon be receiving a milestone payment from Biogen (NASDAQ: BIIB). Here’s what’s going on:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

ACOR Announces Milestone Payment News

In the SEC filing, available here, Acorda Therapeutics said that it has become entitled to receive a $15 million milestone payment from Biogen International GmbH. The milestone payment is the result of a license agreement with Biogen.

In particular, the agreement stipulates that should Biogen’s ex-U.S. net sales of Fampyra exceed $100 million over four consecutive quarters, ACOR is entitled to receive a $15 million milestone payment. The company said that this milestone was achieved with the four consecutive quarters ending with the third quarter of 2020.

In the release, ACOR said that it will net $14 million from the milestone payment, net of the company’s obligations to another party. It is expected that BIIB will make the milestone payment by the end of October.

This Is Big News

$15 million is a lot of money. Considering that Acorda Therapeutics trades with a market cap of around $33 million, this particular milestone payment represents nearly half of the company’s entire perceived value in the market.

The $15 million payment, $14 million of which ACOR will keep in house, will greatly improve the company’s balance sheet.

ACOR has had a rough go in the market over the past year. As a result, the stock was down heavily and trading with heavy short interest. With the positive news surrounding the milestone payment, a short squeeze seems to be taking place, leading to tremendous volume and tremendous gains.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don't Miss The Next Big Story

Join our free mailing list below to receive real-time news alerts!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.