Acorda Therapeutics sets IPO price talk at $11-$13 per share for 5.5 million shares

By Ted A. Knutson

Washington, Jan. 23 - Acorda Therapeutics, Inc. set the beginning price talk for its initial public offering at $11 to $13 per share for 5.5 million shares in an amendment to its S-1 registration with the Securities and Exchange Commission.

There is an over-allotment option for up to 825,000 shares.

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, 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 multiple sclerosis.

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.

At the midpoint of price talk, the offering will generate gross proceeds of $66 million or up to $75.9 million if the over-allotment option is fully exercised. At the same pricing, net IPO proceeds are estimated at $59.3 million and at up to $68.5 if the greenshoe is fully exercised.

Proceeds will be used for sales, marketing, clinical development and general corporate purposes.

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

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