Shares in Acorda Therapeutics Inc (NASDAQ:ACOR) fell inexplicably by 15.73% to $22.99 yesterday. Even though 2.84 million shares were traded, there was no announcement from the company to account for the sudden bearish action in the stock.
Acorda Therapeutics is a biotechnology company focused on developing therapies that restore function and improve the lives of people with neurological disorders.
Its current pipeline addresses therapies for Parkinson’s Disease, Post-stroke Walking Difficulties, Primary Sclerosing Cholangitis, Migraine and MS.
Acorda Therapeutics Inc (NASDAQ:ACOR)’s gap down plunge
A reference to Acorda’s daily chart shows how bulls were led into a trap, and that the stock only flattered to deceive.
The stock rose from a low of $23.75 on September 12 to a high of $27.62 on September 23. In doing so the stock took out a series of previous highs clustered in the region between $26 and $27.
The bulls may have been forgiven for thinking that resistances had been demolished and that a clear path lay towards the July 6 high of $29.77.
Yesterday, however, the stock opened at $25.00, far below the Friday close of $27.28, and cracked further to a low of $22.81 before closing a shade higher at $22.99.
Bears evidently had a field day, and managed to push the price far below the previous lows of $23.72 (Sept 9) and $23.59 (August 10). This is highly significant.
Is bad news around the corner, and could the stock be readying for another leg down?
Acorda Therapeutics Inc (NASDAQ:ACOR) to ward off generic competition
It may be noted that Acorda is likely to commence litigation against various generic drug manufacturers in an effort to block applications for generic drug rivals to its Ampyra drug for walking in multiple sclerosis.
Unfavorable legal developments could cause difficulties for Acorda, which is still consolidating its acquisition of Biotie Therapies Corp., a Finnish bio-pharmaceutical company. Biotie’s current development products include tozadenant for Parkinson`s disease, which is in Phase 3 development, and two additional compounds which are in Phase 2 development for cognitive disorders including Parkinson`s disease dementia, and primary sclerosing cholangitis (PSC), a rare fibrotic disease of the liver.
These are all products that are crucial to the future of Acorda.