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Acorda Therapeutics Reports Fourth Quarter and Full Year 2012 Financial Results



  Acorda Therapeutics Reports Fourth Quarter and Full Year 2012 Financial
  Results

  * AMPYRA^® (dalfampridine) Fourth Quarter Net Revenue of $72.7 Million; Full
    Year 2012 Net Revenue of $266.1 Million
  * Combined Fourth Quarter Zanaflex^® Franchise and ex-U.S. FAMPYRA^® Royalty
    Revenue of $6.5 Million; Full Year Combined Revenue of $30.6 Million
  * Full Year 2013 Guidance for AMPYRA Net Revenue of $285-$315 Million
  * Full Year 2013 Guidance for Combined Zanaflex Franchise and ex-U.S.
    FAMPYRA Royalty and License Revenue of $25 Million
  * Full Year 2013 Guidance for SG&A Expense of $170-$180 Million, Excluding
    Share-Based Compensation
  * Full Year 2013 Guidance for R&D Expense of $60-$70 Million, Excluding
    Share-Based Compensation

Business Wire

ARDSLEY, N.Y. -- February 13, 2013

Acorda Therapeutics, Inc. (Nasdaq: ACOR) today announced its financial results
for the fourth quarter and full year ended December 31, 2012.

“We are pleased with the performance of AMPYRA in 2012, and excited about the
franchise’s potential to expand in future years. AMPYRA sales grew
approximately 26% in 2012 over 2011, and we expect sales to continue to
increase in 2013. In addition, results from our life cycle management programs
in post-stroke deficits and cerebral palsy are projected to read out in the
second quarter of 2013,” said Ron Cohen, M.D., Acorda Therapeutics’ President
and CEO.

“We believe we have one of the most interesting neurology pipelines in the
industry. Pending additional clinical and manufacturing data, we plan to
submit a New Drug Application to the FDA for Diazepam Nasal Spray in 2013. We
also anticipate having three additional clinical stage programs by mid-year.
The continued growth of AMPYRA, coupled with near-term pipeline milestones,
has created the potential for meaningful growth in shareholder value.”

FINANCIAL RESULTS

The Company reported GAAP net income of $133.0 million for the quarter ended
December 31, 2012, or $3.27 per diluted EPS, including share-based
compensation charges totaling $6.1 million and a $132.7 million non-recurring
tax benefit. For the full year 2012, the Company reported GAAP net income of
$155.0 million, or $3.84 per diluted EPS, including share-based compensation
charges totaling $21.4 million and a $132.7 million non-recurring tax benefit.
GAAP net income in the same quarter of 2011 was $12.7 million, or $0.32 per
diluted EPS, including share-based compensation charges totaling $5.5 million,
and $30.6 million, or $0.76 per diluted EPS, including share-based
compensation charges totaling $19.3 million for the full year 2011.

Non-GAAP net income, excluding the non-recurring tax benefit, share-based
compensation charges and payments in connection with the acquisition of
Neuronex, Inc., for the quarter ended December 31, 2012 was $9.8 million, or
$0.24 per diluted EPS, and $50.3 million, or $1.25 per diluted EPS for the
full year 2012. Non-GAAP net income in the same quarter of 2011 was $18.2
million or $0.45 per diluted EPS. Non-GAAP net income for full year 2011,
before share-based compensation charges and other adjustments, was $45.1
million or $1.13 per diluted EPS.

AMPYRA^® (dalfampridine) Extended Release Tablets, 10 mg net revenue - For the
quarter ended December 31, 2012, the Company reported AMPYRA net revenue of
$72.7 million, compared to $57.2 million in net revenue for the same quarter
in 2011. For the year ended December 31, 2012, the Company reported AMPYRA net
revenue of $266.1 million, compared to $210.5 million in net revenue in 2011.
AMPYRA revenue is recognized following shipment of the product from the
Company’s distribution facility to its network of specialty pharmacies.

ZANAFLEX CAPSULES^® (tizanidine hydrochloride), ZANAFLEX^® (tizanidine
hydrochloride) tablets and authorized generic capsules net revenue and
royalties - For the quarter ended December 31, 2012, the Company reported
combined net revenue from ZANAFLEX CAPSULES and ZANAFLEX tablets sales of $1.6
million; revenue from the sale of authorized generic tizanidine hydrochloride
capsules to Actavis, Inc. totaled $1.1 million and royalties from Actavis for
the sale of authorized generic tizanidine hydrochloride capsules were $2.5
million, for combined total net revenue of $5.2 million. Combined net revenue
from ZANAFLEX CAPSULES and ZANAFLEX tablets sales were $11.8 million for the
same quarter in 2011. The decrease is due to the launch of generic versions of
ZANAFLEX CAPSULES during the first quarter of 2012.

For the full year ended December 31, 2012, the Company reported combined net
revenue from ZANAFLEX CAPSULES and ZANAFLEX tablets sales of $13.2 million;
revenue from the sale of authorized generic tizanidine hydrochloride capsules
to Actavis, Inc. totaled $3.1 million and royalties from Actavis for the sale
of authorized generic tizanidine hydrochloride capsules were $7.2 million, for
combined total net revenue of $23.5 million. Combined net revenue from
ZANAFLEX CAPSULES and ZANAFLEX tablets sales were $45.8 million for the full
year 2011. The decrease is due to the launch of generic versions of ZANAFLEX
CAPSULES during the first quarter of 2012.

ZANAFLEX revenue is recognized using a deferred revenue recognition model,
meaning ZANAFLEX CAPSULES and ZANAFLEX tablets shipments to wholesalers are
recorded as deferred revenue and only recognized as revenue when end-user
prescriptions of ZANAFLEX CAPSULES and ZANAFLEX tablets are reported.
Authorized generic product sold to Actavis is recorded as sales when shipped.

FAMPYRA^® (prolonged-release fampridine tablets) royalties - For the quarter
ended December 31, 2012, the Company reported FAMPYRA royalties from sales
outside of the U.S. of $1.3 million, compared to $1.3 million for the same
quarter in 2011. For the full year 2012, the Company reported FAMPYRA
royalties from sales outside of the U.S. of $7.1 million, compared to $1.9
million in 2011.

Cost of sales for the quarter ended December 31, 2012 were $16.2 million,
compared to $13.4 million for the same quarter in 2011. Included in cost of
sales for the quarter ended December 31, 2012 was $1.1 million in cost of
authorized generic tizanidine hydrochloride capsules sold to Actavis. Cost of
sales for the full year 2012 were $57.0 million, compared to $64.2 million for
the full year 2011. The decrease in cost of sales was primarily due to the
$14.1 million in accounting adjustments in 2011 related to the Apotex patent
infringement trial court decision.

Research and development (R&D) expenses for the quarter ended December 31,
2012 were $18.2 million, including $1.4 million of share-based compensation,
compared to $10.3 million including $1.7 million of share-based compensation
for the same quarter in 2011. R&D expenses for the full year 2012 were $53.9
million, including $5.1 million of share-based compensation, compared to $42.1
million including $5.8 million of share-based compensation for the full year
2011. R&D expenses for the full year ended December 31, 2012 included costs
related to the Neuronex agreement, AMPYRA post-marketing studies and life
cycle management programs, including AMPYRA proof-of-concept cerebral palsy
and post-stroke deficits studies, and the development of the Company’s
pipeline products, including expenses for Glial Growth Factor 2 (GGF2).

Sales, general and administrative (SG&A) expenses for the quarter ended
December 31, 2012 were $45.6 million, including $4.6 million of share-based
compensation, compared to $35.7 million including $3.8 million of share-based
compensation for the same quarter in 2011. SG&A expenses for the full year
2012 were $168.7 million, including $16.3 million of share-based compensation,
compared to $148.5 million including $13.5 million of share-based compensation
for the full year 2011.

Recognition of tax benefit and reversal of valuation allowance - During the
quarter ended December 31, 2012, as a result of its sustained profitability
and forecasts for future taxable earnings, and in accordance with GAAP, the
Company released the valuation allowance on all of its deferred tax assets.
The valuation release resulted in the recognition of a non-recurring tax
benefit of $132.7 million, which is reflected in the Company’s GAAP results
for the quarter ended December 31, 2012. In order to provide comparable
information about its earnings, the Company reported the reversal of this
non-recurring tax benefit for non-GAAP purposes.

For 2012, the Company was cash flow positive and closed the year in a strong
financial position with cash, cash equivalents and short-term and long-term
investments of $333.2 million, an increase of $14.5 million over the third
quarter of 2012 and $37.3 million over our 2011 ending cash, cash equivalents
and short-term and long-term investments.

GUIDANCE FOR 2013

  * The following guidance does not include potential expenditures related to
    the acquisition of new products or other business development activities.
  * The Company expects AMPYRA 2013 full year net revenue of $285-$315
    million.
  * In 2013, the Company expects Zanaflex franchise and ex-U.S. FAMPYRA
    revenue of $25 million, which includes sales of branded Zanaflex products,
    royalties from ex-U.S. FAMPYRA and authorized generic tizanidine
    hydrochloride capsules sales, and $9.1 million in amortized licensing
    revenue from the $110 million payment the Company received from Biogen
    Idec in 2009 for FAMPYRA ex-U.S. development and commercialization rights.
  * SG&A expenses for the full year 2013 are expected to be $170-$180 million,
    excluding share-based compensation. SG&A will be primarily driven by
    commercial and administrative costs related to AMPYRA. The majority of the
    increase in SG&A in 2013 over 2012 is related to Diazepam Nasal Spray
    expenses.
  * R&D expenses for the full year 2013 are expected to be $60-$70 million,
    excluding share-based compensation. R&D expenses in 2013 related to AMPYRA
    include proof-of-concept studies in cerebral palsy and post-stroke
    deficits, and sponsorship of investigator-initiated studies. Additional
    expenses include clinical trials for AC105 and rHIgM22, continued
    development of Diazepam Nasal Spray and GGF2, as well as ongoing
    preclinical studies. A substantial portion of the increase in R&D in 2013
    over 2012 is related to Diazepam Nasal Spray expenses.
  * The Company expects to be cash flow positive in 2013.

AMPYRA UPDATE

  * Between its launch in March 2010 and the end of 2012, more than 73,000
    people with multiple sclerosis have tried AMPYRA.
  * The Company reported top-line data from a post-marketing commitment study
    evaluating a 5 mg dose of dalfampridine-ER to improve walking in people
    with MS. The study failed to confirm efficacy of the 5 mg dose.

PIPELINE UPDATE

  * Following the December 2012 acquisition of Neuronex, Inc., the Company
    began preparing a New Drug Application (NDA) for Diazepam Nasal Spray.
    Pending additional clinical and manufacturing data, the Company plans to
    submit the NDA to the U.S. Food and Drug Administration (FDA) in 2013,
    with potential approval and commercial launch in 2014.
  * The Company initiated proof-of-concept clinical studies exploring the use
    of AMPYRA in patients with post-stroke deficits and cerebral palsy.
    Results from both of these trials are expected in the second quarter of
    2013.
  * The GGF2 Phase 1 clinical trial in heart failure was completed. This was a
    dose-escalating trial designed to test the maximum tolerated single dose.
    The Company plans to present findings in a platform presentation at this
    year’s American College of Cardiology (ACC) annual meeting in March, and
    will discuss the data with the FDA before proceeding to a multiple dose
    study.
  * The Company submitted the Phase 2 clinical trial protocol for AC105 for
    acute treatment of spinal cord injury to its IND on file with the FDA, and
    expects to initiate the trial in the first half of 2013.
  * The Department of Defense awarded the Company a contract for $2.67 million
    to support the Phase 2 clinical trial of AC105.
  * The Company opened an Investigational New Drug (IND) application for
    rHIgM22, a remyelinating antibody for the treatment of multiple sclerosis
    and plans to begin a Phase 1 clinical trial in the first half of 2013.

CORPORATE UPDATE

  * The Company completed its acquisition of Neuronex, Inc., a privately held
    company developing Diazepam Nasal Spray.
  * For the second year in a row, the Company was ranked in the top 10 of the
    Best Companies to Work for in New York in the large company category,
    based on an independent survey identifying the best places of employment
    in the State of New York. Acorda was ranked seventh among large companies,
    defined as employing more than 250 people. This ranking reflected feedback
    from employees about company culture, benefits and overall job
    satisfaction.
  * The Company named Jane Wasman as President, International. In this role,
    Ms. Wasman will lead the Company’s efforts to identify and launch
    in-licensing and commercial opportunities outside the United States. She
    will also be responsible for managing Acorda’s collaboration with Biogen
    Idec (Nasdaq: BIIB) in their international development and
    commercialization of FAMPYRA.

This press release includes financial results prepared in accordance with
accounting principles generally accepted in the United States (GAAP), and also
certain historical and forward-looking non-GAAP financial measures. In
particular, Acorda has provided income, adjusted to exclude share-based
compensation charges, the payments associated with Neuronex in 2012, the tax
benefit relating to the reduction of the deferred tax asset valuation
allowance in 2012, the net milestone revenue relating to Biogen Idec’s receipt
of conditional approval from the European Commission for FAMPYRA in 2011, the
ZANAFLEX CAPSULES adjustments due to the Apotex patent infringement trial
court decision in 2011 and the AC105 license fee in 2011. Also, Acorda has
provided projected amounts of research and development (R&D) and sales,
general, and administrative (SG&A) expenses excluding share-based compensation
charges and future expenditures related to the potential acquisition of
Neuronex and diazepam nasal spray. These non-GAAP financial measures are not
an alternative for financial measures prepared in accordance with GAAP.
However, we believe the presentation of these non-GAAP financial measures when
viewed in conjunction with our GAAP results, provide investors with a more
meaningful understanding of our ongoing and projected operating performance
because they exclude non-cash charges that are substantially dependent on
changes in the market price of our common stock and expenses and income that
do not arise from the ordinary course of our business. We believe these
non-GAAP financial measures help indicate underlying trends in the company’s
business and are important in comparing current results with prior period
results and understanding projected operating performance. Also, management
uses these non-GAAP financial measures to establish budgets and operational
goals, and to manage the company’s business and to evaluate its performance. A
reconciliation of the historical non-GAAP financial results presented in this
release to our GAAP financial results is included in the attached financial
statements.

WEBCAST AND CONFERENCE CALL

Ron Cohen, President and Chief Executive Officer, and David Lawrence, Chief
Financial Officer,  will host a conference call today at 8:30 a.m. ET to
review the Company’s fourth quarter and full year 2012 results.

To participate in the conference call, please dial 866-356-3095 (domestic) or
617-597-5391 (international) and reference the access code 66159419. The
presentation will be available via a live webcast on the Investor section of
www.acorda.com.

A replay of the call will be available from 10:30 a.m. ET on February 13, 2013
until midnight on March 13, 2013. To access the replay, please dial
888-286-8010 (domestic) or 617-801-6888 (international) and reference the
access code 55654711. The archived webcast will be available for 30 days in
the Investor Relations section of the Acorda website at www.acorda.com.

Important New Safety Information

AMPYRA is contraindicated in patients with a history of hypersensitivity to
Ampyra or 4-aminopyridine.

Important Safety Information

AMPYRA is contraindicated in patients with a history of seizures, or with
moderate or severe renal impairment (CrCl ≤ 50 mL/min), or history of
hypersensitivity to AMPYRA or 4-aminopyridine.

AMPYRA can cause seizures; the risk of seizures increases with increasing
AMPYRA doses. Discontinue AMPYRA and do not restart if seizure occurs.

AMPYRA should not be taken with other forms of 4-aminopyridine (4-AP,
fampridine), since the active ingredient is the same.

AMPYRA can cause anaphylaxis and severe allergic reactions. Signs and symptoms
have included respiratory compromise, urticaria, and angioedema of the throat
or tongue. If an anaphylactic or other serious allergic reaction occurs,
AMPYRA should be discontinued and not restarted.

The risk of seizures in patients with mild renal impairment (CrCl 51-80
mL/min) is unknown, but AMPYRA plasma levels in these patients may approach
those seen at a dose of 15 mg twice daily, a dose that may be associated with
an increased risk of seizures; estimated CrCl should be known before
initiating treatment with AMPYRA.

The most common adverse events (incidence greater-than or equal to 2% and at a
rate greater than the placebo rate) for AMPYRA in MS patients were urinary
tract infection, insomnia, dizziness, headache, nausea, asthenia, back pain,
balance disorder, multiple sclerosis relapse, paresthesia, nasopharyngitis,
constipation, dyspepsia, and pharyngolaryngeal pain.

For full U.S. Prescribing Information and Medication Guide for AMPYRA, please
visit: www.AMPYRA.com.

About AMPYRA (dalfampridine)

AMPYRA is a potassium channel blocker approved as a treatment to improve
walking in patients with multiple sclerosis (MS). This was demonstrated by an
increase in walking speed. AMPYRA, which was previously referred to as
Fampridine-SR, is an extended release tablet formulation of dalfampridine
(4-aminopyridine, 4-AP), and is known as prolonged-, modified, or
sustained-release fampridine (FAMPYRA^®) in some countries outside the United
States (U.S).

In laboratory studies, dalfampridine extended release tablets has been found
to improve impulse conduction in nerve fibers in which the insulating layer,
called myelin, has been damaged. AMPYRA is being developed and commercialized
in the U.S. by Acorda Therapeutics; FAMPYRA is being developed and
commercialized by Biogen Idec in markets outside the U.S. based on a licensing
agreement with Acorda. AMPYRA and FAMPRYA are manufactured globally by
Alkermes Pharma Ireland Limited, a subsidiary of Alkermes plc, based on a
supply agreement with Acorda.

AMPYRA is available by prescription in the United States. For more information
about AMPYRA, including patient assistance and co-pay programs, healthcare
professionals and people with MS can contact AMPYRA Patient Support Services
at 888-881-1918. AMPYRA Patient Support Services is available Monday through
Friday, from 8:00 a.m. to 8:00 p.m. Eastern Time.

For full U.S. Prescribing Information and Medication Guide, please visit:
www.AMPYRA.com.

About Acorda Therapeutics

Acorda Therapeutics is a biotechnology company focused on developing therapies
that restore function and improve the lives of people with MS, spinal cord
injury and other neurological conditions.

Acorda markets AMPYRA^® (dalfampridine) Extended Release Tablets, 10 mg, in
the United States as a treatment to improve walking in patients with multiple
sclerosis (MS). This was demonstrated by an improvement in walking speed.
AMPYRA is marketed outside the United States as FAMPYRA^® (prolonged-release
fampridine tablets) by Biogen Idec under a licensing agreement from Acorda.
AMPYRA and FAMPYRA are manufactured under license from Alkermes Pharma Ireland
Limited.

The Company also markets ZANAFLEX CAPSULES^® (tizanidine hydrochloride) and
Zanaflex tablets, a short-acting drug for the management of spasticity. Acorda
also receives sales royalties on tizanidine hydrochloride capsules, an
authorized generic version of ZANAFLEX CAPSULES, distributed by Actavis, Inc.
under its agreement with Acorda.

Acorda has an industry-leading pipeline of novel neurological therapies. The
Company is developing Diazepam Nasal Spray for treatment of certain epileptic
seizures. It is also studying AMPYRA to improve a range of functional
impairments caused by MS, as well as its potential for use in other
neurological conditions, including cerebral palsy and post-stroke deficits. In
addition, Acorda is developing clinical stage compounds AC105 for acute
treatment of spinal cord injury, GGF2 for treatment of heart failure and
rHIgM22, a remyelinating monoclonal antibody, for the treatment of MS. GGF2 is
also being investigated in preclinical studies as a treatment for neurological
conditions such as stroke and spinal cord injury. Chondroitinase, an enzyme
that encourages nerve plasticity in spinal cord injury, is in preclinical
development.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, regarding management's expectations,
beliefs, goals, plans or prospects should be considered forward-looking. These
statements are subject to risks and uncertainties that could cause actual
results to differ materially, including our ability to successfully market and
sell Ampyra in the U.S.; third party payers (including governmental agencies)
may not reimburse for the use of Ampyra or our other products at acceptable
rates or at all and may impose restrictive prior authorization requirements
that limit or block prescriptions; the risk of unfavorable results from future
studies of Ampyra or from our other research and development programs,
including Diazepam Nasal Spray or any other acquired or in-licensed programs;
we may not be able to complete development of, obtain regulatory approval for,
or successfully market Diazepam Nasal Spray or other products under
development; the occurrence of adverse safety events with our products; delays
in obtaining or failure to obtain regulatory approval of or to successfully
market Fampyra outside of the U.S. and our dependence on our collaboration
partner Biogen Idec in connection therewith; competition, including the impact
of generic competition on Zanaflex Capsules revenues; failure to protect our
intellectual property, to defend against the intellectual property claims of
others or to obtain third party intellectual property licenses needed for the
commercialization of our products; failure to comply with regulatory
requirements could result in adverse action by regulatory agencies; and the
ability to obtain additional financing to support our operations. These and
other risks are described in greater detail in Acorda Therapeutics' filings
with the Securities & Exchange Commission. Acorda may not actually achieve the
goals or plans described in its forward-looking statements, and investors
should not place undue reliance on these statements. Forward-looking
statements made in this release are made only as of the date hereof, and
Acorda disclaims any intent or obligation to update any forward-looking
statements as a result of developments occurring after the date of this
release.

Financial Statements

Acorda Therapeutics, Inc.

Condensed Consolidated Balance Sheet Data

(in thousands)

(Unaudited)
                                                                 
                                               December 31,       December 31,

                                               2012               2011
                                                                   
Assets
Cash, cash equivalents, short-term and         $   333,188        $   295,907
long-term investments
Trade receivable, net                              26,327             22,828
Other current assets                               16,863             13,825
Finished goods inventory                           20,957             28,382
Property and equipment, net                        16,706             3,858
Deferred tax asset                                 136,727            -
Intangible assets, net                             9,319              8,769
Other assets                                       5,245              5,919
Total assets                                   $   565,332        $   379,488
                                                                   
Liabilities and stockholders' equity
Accounts payable, accrued expenses and         $   58,261         $   45,542
other liabilities
Deferred product revenue                           29,275             30,599
Current portion of deferred license                9,057              9,057
revenue
Current portion of notes payable                   1,144              1,144
Current portion of revenue interest                1,134              1,001
liability
Long-term liabilities                              10,415             6,266
Non-current portion of revenue interest            1,440              2,928
liability
Non-current portion of deferred license            68,685             77,742
revenue
Stockholders' equity                               385,921            205,209
Total liabilities and stockholders' equity     $   565,332        $   379,488
                                                                   

Acorda Therapeutics, Inc.

Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)
                                                     
                       Three Months Ended             Twelve Months Ended
                       December 31,                   December 31,
                       2012          2011             2012          2011
                                                                     
Revenues:
Net product            $ 75,390      $ 69,049         $ 282,381     $ 256,271
revenues
Royalty                  3,819         1,331            14,376        1,909
revenues
Milestone                -             -                -             25,000
revenue
License                  2,264         2,264            9,057         9,057    
revenue
Total revenues           81,473        72,644           305,814       292,237
                                                                     
Costs and
expenses:
Cost of sales            16,205        13,434           57,007        64,183
Cost of
milestone and            159           159              634           2,384
license
revenue
Research and             18,191        10,304           53,881        42,108
development
Selling,
general and              45,594        35,720           168,690       148,508  
administrative
Total
operating                80,149        59,617           280,212       257,183
expenses
                                                                     
Operating              $ 1,324       $ 13,027         $ 25,602      $ 35,054
income
                                                                     
Other expense,           (226    )     (85    )         (1,334  )     (3,036  )
net
Income before            1,098         12,942           24,268        32,018
income taxes
Benefit from
(provision               131,875       (248   )         130,690       (1,413  )
for) income
taxes
                                                                     
Net income             $ 132,973     $ 12,694         $ 154,958     $ 30,605   
                                                                     
Net income per
common share -         $ 3.36        $ 0.32           $ 3.93        $ 0.78
basic
Net income per
common share -         $ 3.27        $ 0.32           $ 3.84        $ 0.76
diluted
Weighted
average per              39,597        39,178           39,459        39,000
common share -
basic
Weighted
average per              40,661        40,152           40,332        40,064
common share -
diluted
                                                                               

Acorda Therapeutics, Inc.

Non-GAAP Income and Income per Common Share Reconciliation

(in thousands, except per share amounts)

(Unaudited)
                                                             
                        Three Months Ended                    Twelve Months Ended
                        December 31,                          December 31,
                        2012               2011               2012               2011
                                                                                  
GAAP net                $ 132,973          $ 12,694           $ 154,958          $ 30,605
income
Pro forma
adjustments:
Neuronex
payments                  3,453              -                  6,653              -
included in
R&D (Note 1)
                                                                                  
Tax benefit
adjustment                (132,743 )         -                  (132,743 )         -
(Note 2)
                                                                                  
Collaboration
milestone                 -                  -                  -                  (25,000 )
revenue (Note
3)
                                                                                  
Cost of
milestone                 -                  -                  -                  1,750
revenue (Note
3)
                                                                                  
Zanaflex
Capsule                   -                  -                  -                  15,477
adjustments
(Note 4)
                                                                                  
License
agreement                 -                  -                  -                  3,000
expense in
R&D (Note 5)
                                                                                  
Share-based
compensation
expenses                  1,440              1,680              5,122              5,801
included in
R&D
Share-based
compensation
expenses                  4,630              3,777              16,296             13,502   
included in
SG&A
Total
share-based               6,070              5,457              21,418             19,303
compensation
expenses
                                                                                  
Total pro
forma                     (123,220 )         5,457              (104,672 )         14,530
adjustments
                                                                                  
Non-GAAP net            $ 9,753            $ 18,151           $ 50,286           $ 45,135   
income
                                                                                  
Net income
per common              $ 0.25             $ 0.46             $ 1.27             $ 1.16
share - basic
Net income
per common              $ 0.24             $ 0.45             $ 1.25             $ 1.13
share -
diluted
Weighted
average per               39,597             39,178             39,459             39,000
common share
- basic
Weighted
average per               40,661             40,152             40,332             40,064
common share
- diluted
                                                                                            

Note 1: $6,800 closing consideration for Neuronex in fourth quarter less net
assets acquired of $3,726 which were primarily the taxable amount of Neuronex
net operating loss carryforwards plus $2,000 upfront payment and $1,579 in R&D
payments.

Note 2: Tax benefit recorded for reduction of deferred tax asset valuation
allowance in fourth quarter.

Note 3: $25,000 milestone revenue relating to Biogen Idec receipt of
conditional approval from the European Commission for Fampyra in Q3 2011.
Based on Acorda’s worldwide license and supply agreement with Elan, Elan
received 7% of this milestone payment from Acorda during the same period which
was recorded as cost of milestone revenue.

Note 4: Adjustments relating to Zanaflex Capsules due to Apotex patent
infringement trial court decision in Q3 2011. ($13,038 Intangible asset
impairment included in cost of sales, $1,020 commercial inventory reserve
included in cost of sales, $1,083 PRF put/call liability adjustment included
in SG&A, $336 sample inventory reserve included in SG&A).

Note 5: $3,000 upfront expense related to licensed worldwide development and
commercialization rights to a proprietary magnesium formulation from
Medtronic, Inc. (AC105) included in R&D in 2011.

Contact:

Acorda Therapeutics
Jeff Macdonald, 914-326-5232
jmacdonald@acorda.com
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