Feb. 24 (Bloomberg) -- Biogen Idec Inc. is in talks to buy Acorda Therapeutics Inc. to gain an experimental pill for patients with multiple sclerosis, people familiar with the discussions said.

Acorda shares surged 19 percent, the most since June 2, when the company said its lead experimental drug, Fampridine, helped MS patients walk. Biogen, the world’s largest maker of medicines for multiple sclerosis, is also talking about buying rights to market Fampridine, the people said. The pill may be cleared for U.S. sale this year.

Cambridge, Massachusetts-based Biogen is racing Merck KGaA and Novartis AG to market the first pill for multiple sclerosis, a disease currently managed by injected medicines that generate $6 billion a year worldwide. Acorda, based in Hawthorne, New York, today said its 2008 net loss doubled from the previous year and the company is trying to sell marketing rights to Fampridine to fund operations beyond 2010.

“The next rational step is exploratory discussions with potential partners,” Acorda Chief Executive Officer Ron Cohen said today during a conference call with investors. “That does not in any way preclude us from exploring other options.”

Acorda spokesman Jeff Macdonald and Biogen spokeswoman Naomi Aoki declined to comment.

Acorda shares rose $4.15, or 19 percent, to $25.61 at 4 p.m. in Nasdaq stock market trading, boosting the company’s market value to about $966 million. Before today, the shares fell 4.3 percent in the past 12 months.

Biogen rose 27 cents, less than 1 percent, to $49.65 on the Nasdaq. The shares have declined 18 percent in the 12 months before today, and the company has a market capitalization of about $15 billion.

Biogen’s top-selling MS medication, Avonex, generated $2.2 billion last year. Its fastest growing product is the MS drug Tysabri, which had 2008 sales of $589 million. The company’s oral MS drug, BG-12, is in final human tests. Biogen is also developing at least three other experimental treatments, daclizumab, CDP323 and Lingo, for MS.

To contact the reporter on this story: Lisa Rapaport in New York at lrapaport1@bloomberg.net

Last Updated: February 24, 2009 16:18 EST