Acorda Therapeutics, Inc. (NASDAQ: ACOR) is watching its shares slide on Monday after the company gave an update on a recent clinical study. Essentially, the company announced that its Milestone clinical study did not show sufficient efficacy to support further development of dalfampridine to improve post-stroke difficulties (PSWD).

The primary outcome measure of the study was the proportion of participants who showed at least a 20% improvement on the two-minute walk test at week 12 as compared to baseline. However, this was not statistically significant enough to further develop.

In this study, dalfampridine was well tolerated in the post-stroke population. The safety profile overall was similar to that observed in multiple sclerosis clinical trials and post-marketing surveillance.

Acorda Therapeutics was founded in 1995 and is a biotechnology company focused on developing therapies that restore function and improve the lives of people with neurological disorders.

Ron Cohen, M.D., President and CEO of Acorda, commented:

We are disappointed by this outcome. The study indicated there was activity related to walking in people with PSWD, as suggested by the prior Phase 2 study, but overall this was not sufficiently clinically meaningful. I want to express our gratitude to the study participants, their care partners and clinicians, who gave their time and commitment to this research. This outcome underscores the risks that companies in the biopharmaceutical industry must take in order to develop innovative medicines. Over the past three years, we have successfully diversified our pipeline portfolio to account for this risk. We plan to focus R&D resources on developing our promising late-stage Parkinson’s disease therapies, CVT-301 and tozadenant, as well as advancing our earlier stage assets, CVT-427 in migraine, SYN120 in Parkinson’s disease dementia, and rHIgM22 in MS.

Shares of Acorda were last trading down about 5% at $20.23, with a consensus analyst price target of $38.14 and a 52-week trading range of $16.40 to $43.63.

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