Merz Pharmaceuticals GmbH

Acorda says it will continue normal operations until the sale is closed. After years of struggling with hurdles such as generic competition and significantly lower-than-expected sales of its top meds, Acorda Therapeutics is hanging up the gloves with a $185 million deal to sell off its assets and a bankruptcy filing. Germany’s Merz therapeutics, known for its Botox rival Xeomin, has stepped in to pick up the company’s Parkinson’s disease med Inbrija and multiple sclerosis drug Amprya (or Fampyra in Europe and Canada). Acorda came to the decision after it explored a “wide range” of options during a lengthy strategic review, the company said in its Monday press release.   "Acorda’s management team and board have evaluated all of our strategic options, and following an exhaustive process believe that this option is in the best interest of stakeholders,” CEO Ron Cohen, M.D., said. One of the company’s top priorities is to ensure patients can continue receiving their medicines. Acorda is “confident that Merz Therapeutics, if they are the ultimate acquirer, will be able to seamlessly continue serving these patients’ needs,” Cohen added. Merz is serving as a “stalking horse bidder,” a bankruptcy move intended to maximize the value of a company’s assets through a more competitive auction process ahead of a court auction.  Acorda will continue with its normal operations until the U.S. Bankruptcy Court for the Southern District of New York approves the sale, which is expected in June.  Meanwhile, Merz looks to use the products to bolster its presence in North America, Merz Group’s chief commercial officer Jörg Bergler noted in Merz’s press release. “We recognize the responsibility of providing continued patient care and support for Acorda’s well-established and innovative therapies and see this as an optimal potential portfolio expansion that underscores our ambition in key therapeutic areas,” Merz Therapeutics’ CEO Stefan König noted. The deal is a way out after years of struggles for New York-based Acorda. In 2018, Inbrija was approved as a treatment for “off” episodes for Parkinson’s patients, which is when symptoms return between regular medication doses. The company initially projected $800 million in peak sales, but it later adjusted the estimate to between $350 million and $500 million. That range still proved far too lofty, with global sales coming in at $30.9 million in 2022. Ampryva, meanwhile, generated $455 million in 2018 but quickly slid to $163 the following year after losing four patents. Most recently, that drug collected $15.7 million over 2023’s third quarter in the face of immense generic competition. The company responded to the challenges with several rounds of layoffs, including cutting 25% of its workforce in 2019, 16% in early 2021 and another 15% later that year in an attempt to save some $20 million annually.

The deal includes Inbrija (levodopa inhalation powder) and Fampyra (fampridine), the latter marketed as Ampyra (dalfampridine) in the US. Image credit: Shutterstock/Andrii Sedykh. Merz Therapeutics has entered an agreement to buy three commercial assets from Acorda Therapeutics for $185m, a day after the latter biotech filed for bankruptcy. Germany-based Merz is acting as a “stalking horse” bidder, meaning the assets could be sold for more than the $185m opening bid if another company decides to swoop in at a higher price. These types of bids come into play in cases involving bankrupt companies. The sale process is expected to end in June 2024, according to a 2 April press release by Merz. The deal is for all US-based Acorda’s assets, including Inbrija (levodopa inhalation powder), and Ampyra (dalfampridine), the latter marketed as Fampyra (fampridine) outside of the US. Inbrija is used to treat patients with Parkinson’s disease whilst Ampyra/Fampyra is approved to help the improve walking ability in patients with multiple sclerosis. Inbrija and Fampyra generated global sales of $31m and $73m respectively in 2023. According to GlobalData’s Pharma Intelligence Centre, Fampyra used to see sales of over $500m in 2017. But once it lost exclusivity in 2018, generics flooded the market. See Also: BioGaia gets grant for therapeutic microvesicles from probiotic bacteria Elanco Animal Health gets grant for reducing ammonia and carbon dioxide emissions from bovines GlobalData is the parent company of Pharmaceutical Technology. A few years ago, Acorda was a big player in the neurodegenerative disorder space, splashing $363m to acquire Finnish biopharma Biotie Therapies, a developer of Parkinson’s disease therapies, in 2016. Acorda has since struggled financially as sales of its drugs weakened. Biogen, which had a 2009 license agreement for Fampyra outside the US, returned the rights to Acorda earlier this year. Shares in the company continued to dive and Acorda ultimately filed for bankruptcy, announced via a 1 April press release. Merz will add Acorda’s medicines to a pipeline which includes Xeomin (incobotulinumtoxinA). As per its US Food and Drug Administration (FDA) label, the botulinum compound is approved to treat chronic sialorrhea – otherwise known as excessive drooling, upper limb spasticity, and cervical dystonia, amongst others. Merz Group’s COO Jörg Bergler said: “This investment would add significantly to Merz Therapeutics’ growth strategy and expand our portfolio in the field of movement disorders and neurodegeneration.” Commenting on the company’s bankruptcy filing, Acorda’s CEO Ron Cohen said: “Acorda’s management team and board have evaluated all of our strategic options, and following an exhaustive process believe that this option is in the best interest of stakeholders.” Merz already has experience buying US-listed companies, having acquired the medical device company Ulthera for $600m in 2014.

Dive Brief:Acorda Therapeutics has filed for bankruptcy and, on Monday, announced it has reached an agreement to sell essentially all its assets to another drugmaker.Acorda said it chose to pursue Chapter 11 bankruptcy, which aims to reorganize a business and repay creditors, following a lengthy strategic review. The company markets three products: a Parkinsons disease medication, Inbrija, and two treatments called Ampyra and Fampyra that are meant to help multiple sclerosis patients walk.Merz Therapeutics, one of the businesses under German company Merz Group, has decided to buy rights to those three drugs and Acordas other assets for $185 million. Merz is acting as a stalking horse bidder, meaning other potential buyers may come forward. The sale will be conducted through a court-supervised process and is expected to conclude in June.Dive Insight:Founded in 1995, Acorda hit a series of setbacks over the past decade that have significantly whittled its share price.In April 2017, a court invalidated key patents protecting Amypra, which, at the time, accounted for almost all of the companys revenue. By August, one of Acordas main shareholders, the asset management firm Scopia Capital Management, was pushing for a strategic review and the consideration of a sale. Later that month, the Food and Drug Administration rejected an approval application for Inbrija, which Acorda got through a $525 million acquisition of Civitas Therapeutics in 2014.Not long after, Acorda discontinued development for one of the drugs it secured through the $363 million purchase of a Finland-based biotechnology company.Acorda had answers to most of these challenges. It appealed the patent ruling, refiled the Inbrija application and set up a poison pill to discourage investors from siding with Scopia.The latter two pieces of that plan ultimately worked. The FDA approved Inbrija in December 2018, and Acorda never sold. But with the Ampyra case, which went all the way up to the U.S. Supreme Court, the company lost. A couple weeks after the high court refused to take the case, Acorda announced plans to lay off a quarter of its workforce, or about 120 employees, as part of a larger restructuring designed to cut costs.Acorda hasnt rebounded since. Following the bankruptcy announcement, company shares lost more than three-quarters of their value.“Acordas management team and board have evaluated all of our strategic options, and following an exhaustive process believe that this option is in the best interest of stakeholders, said Ron Cohen, the companys CEO, in a statement.One of our top priorities is to ensure an uninterrupted supply of our medications to people with multiple sclerosis and Parkinsons disease. We are confident that Merz Therapeutics, if they are the ultimate acquirer, will be able to seamlessly continue serving these patients needs, Cohen added.To continue to fund operations during the bankruptcy process, Acorda said it and certain noteholders have entered a financing agreement that will provide $20 million in new money. As of Sept. 30, the company had $33.6 million in cash, cash equivalents and restricted cash.While biotech bankruptcies are relatively rare, Acorda wasnt alone in its announcement. Eiger BioPharmaceuticals, a drugmaker focused on rare metabolic diseases, filed for Chapter 11 protection on Monday as well.Eiger has already agreed to sell its only product to a stalking horse bidder for up to $26 million. '