Acorda Therapeutics Secures $185M Asset Sale Deal with Merz Under Chapter 11 Framework

Neurological medication developer Acorda Therapeutics has revealed a landmark acquisition agreement with Merz Therapeutics, valuing the transaction at $185 million. This strategic transaction encompasses Acorda’s core product portfolio, including INBRIJA (levodopa inhalation powder), AMPYRA (dalfampridine), and FAMPYRA—medications serving patients with Parkinson’s disease and multiple sclerosis.

Chapter 11 Path Chosen to Maximize Value

Rather than pursuing a direct sale, Acorda Therapeutics initiated voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of New York. This legal structure enables the company to conduct a competitive auction process, with Merz serving as the baseline bidder. The approach allows other potential acquirers to submit competing offers through a court-supervised mechanism under Section 363 of the Bankruptcy Code, with the final outcome expected by June 2024.

Ron Cohen, M.D., who leads Acorda Therapeutics as CEO and President, explained the rationale: “Our comprehensive strategic assessment led us to conclude this path best serves all stakeholders. Ensuring uninterrupted medication supply to neurological patients remains our paramount concern, and Merz demonstrates the capability and commitment to maintain continuity of care.”

Financing and Operational Continuity

Supporting the restructuring process, Acorda Therapeutics secured a $20 million debtor-in-possession financing facility from existing noteholders. This capital injection enables normal business operations throughout the bankruptcy timeline. Additionally, holders representing over 90% of Acorda’s 6.00% Convertible Senior Secured Notes have committed to a Restructuring Support Agreement, establishing key milestones and conditions for the asset sale process.

The company has petitioned the court for operational authorizations that would minimize disruption to employees, suppliers, customers, and patients relying on Acorda Therapeutics’ medications. This includes protections for critical supply contracts and vendor relationships.

Transaction Framework and Advisory Support

Merz Therapeutics, a neurotoxin-focused division of the global Merz conglomerate headquartered in Frankfurt, brings substantial expertise in movement disorders and neurological conditions. The company’s acquisition aligns with its strategic focus on advancing therapies for complex neurological indications.

Acorda Therapeutics engaged Baker McKenzie (legal), Ernst & Young (financial advisory), and banking firms Ducera Partners and Leerink Partners. The Merz side retained Freshfields Bruckhaus Deringer US LLP, Morgan Stanley, and Deloitte. Secured noteholders received counsel from King & Spalding and Perella Weinberg Partners, ensuring multiple stakeholders received independent expertise throughout negotiations.

Market Implications

This transaction reflects market realities for specialized pharmaceutical companies, where maintaining development momentum and patient access requires capital intensity and operational scale. By structuring the deal through Chapter 11’s auction framework, Acorda Therapeutics creates opportunity for competing bidders while providing transaction certainty through Merz’s committed baseline offer. The June 2024 timeline establishes a defined endpoint for the competitive process, allowing stakeholders—patients, employees, and creditors—to navigate the transition period with reasonable visibility.