Acorda discontinuation of Tozadenant a 'good strategic step,' says Leerink
Leerink analyst Paul Matteis points out that Acorda Therapeutics announced the discontinuation of Tozadenant development in Parkinson's disease in light of a recent safety update last week, noting a significant imbalance in agranulocytosis, sepsis and mortality on drug versus placebo. The analyst notes that he had removed tozadenant from his valuation based on his view that even if the drug had succeeded, these safety issues and related monitoring requirements would be too great of a cost in the context of a moderate symptomatic benefit. The discontinuation of Tozadenant should conserve some cash, he contends, adding that the company's decision is smart as the strategic focus fully shifts to CVT-301, also for Parkinson's Disease. Matteis reiterates a Market Perform rating on the shares.