Davis Law Group, P.S.

Spinal Cord Injury Patients Could See a Breakthrough With New Treatment

Acorda Therapeutics Inc. (ACOR) will pay up to $35 million to Medtronic Inc. (MDT) for global development and commercialization rights to the medical-device maker's magnesium formulation. This is a potential treatment for neurological traumas like spinal cord and brain injuries.

Medtronic receives a $3 million payment right away and potentially $32 million in milestone payments, including single-digit sales royalties. Medtronic has some nonexclusive rights with Acorda in certain areas.

For spinal cord injury patients, the treatment received FDA designation in February 2009.

Acorda plans to find orphan drug designation in the United States. Fast-track status typically is given for life-threatening circumstances because no other drug works as well.

MDT’s fiscal fourth-quarter earnings fell 19 percent.

Acorda in May reported that its first-quarter performance fell short of estimates due to lack of sales of its Ampyra drug, which is used to improve multiple sclerosis patients’ walking ability.



Source:
http://online.wsj.com/article/BT-CO-20110701-705397.html