Acorda Therapeutics Reports First Quarter 2006 Financial Results

Financial Results

For the quarter ended March 31, 2006, gross sales of ZanaflexCapsules(TM) (tizanidine hydrochloride) were $2.3 million and grosssales of Zanaflex(R) tablets were $1.6 million providing combinedgross sales of $3.9 million, compared to $0 for the same quarter in2005. Gross sales are recognized using a deferred revenue recognitionmodel, meaning Zanaflex product shipments to wholesalers are recordedas deferred revenue and only recognized as revenue or gross sales whenend-user prescriptions of Zanaflex Capsules and tablets are reported.Zanaflex Capsule shipments to wholesalers for the quarter ended March31, 2006 were $2.5 million and Zanaflex tablet shipments were $1.3million providing total shipments of $3.8 million, compared to $3.2million in Zanaflex tablet shipments for the same quarter in 2005.

Net loss for the quarter ended March 31, 2006 was $44.1 million or$4.05 per share, compared to a net loss of $13.4 million or $67.65 pershare for the same quarter in 2005. The net loss in the quarter endedMarch 31, 2006 included $37.2 million in non-cash charges associatedwith the remaining unamortized portion of beneficial conversioncharges and issuance costs and reversal of accrued preferred dividendsrecorded as a result of our initial public offering.

As of March 31, 2006, the Company held cash, cash equivalents andshort-term investments of $30.0 million.

"We're pleased with the substantial growth in sales during thefirst quarter, during which we expanded the sales force andstrengthened the Company's commercial infrastructure," stated RonCohen, M.D., President and CEO. "We also announced the completion ofenrollment for our Phase 3 clinical trial of Fampridine-SR in multiplesclerosis and had encouraging results from an additional analysis ofleg strength data from the previous Phase 2 study."

Zanaflex Capsules Highlights

-- In March 2006, Acorda initiated a primary care pilot program with Innovex, using six part-time representatives making exclusive calls for Zanaflex Capsules. These sales representatives have now been trained and are currently calling on high prescribing primary care physicians.

Fampridine-SR Highlights

-- On March 3, 2006 Acorda announced the completion of enrollment of its Phase 3 clinical trial of Fampridine-SR in multiple sclerosis (MS). The study, which is based on a Special Protocol Assessment (SPA) from the Food and Drug Administration (FDA), is evaluating the safety and efficacy of Fampridine-SR in improving walking ability in people with MS. Based on enrollment, the trial is powered at greater than 90% for the demonstration of efficacy.

-- On April 17, 2006 Acorda disclosed a new evaluation of leg strength data from the 2004 MS-F202 Phase 2 clinical study of Fampridine-SR. The Fampridine-SR Timed-Walk responder group and the non-responder group both showed significant improvement in leg strength compared to the placebo group (p less than 0.001 for each group). These data suggest that Fampridine-SR may also have benefits for patients who do not experience a consistent improvement in walking speed with treatment.

Conference Call and Webcast

Ron Cohen, President and Chief Executive Officer, David Lawrence,Chief Financial Officer, and Mary Fisher, Chief Operating Officer willhost a conference call today at 8:30 am Eastern Time to review theCompany's first quarter 2006 results. To access the call, please dial800-599-9795 (domestic) or 617-786-2905 (international) five minutesprior to the start time, and provide the access code 58128848. Areplay of the call will be available from 10:30 a.m. Eastern Time onMay 5, 2006 until 11:59 p.m. Eastern Time on June 5, 2006. To accessthe replay, please dial 888-286-8010 (domestic) or 617-801-6888(international), and provide the access code 73965243. A live audiowebcast of the call can also be accessed from the Company's website,at http://www.acorda.com, for the next 30 days.

Forward Looking Statements

This press release includes forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Allstatements, other than statements of historical facts, regardingmanagement's expectations, beliefs, goals, plans or prospects shouldbe considered forward-looking. These statements are subject to risksand uncertainties that could cause actual results to differmaterially, including Acorda Therapeutics' ability to successfullymarket and sell Zanaflex Capsules , the risk of unfavorable resultsfrom the Phase 3 clinical trial of Fampridine SR, delays in obtainingor failure to obtain FDA approval of Fampridine-SR, competition, theability to obtain additional financing to support Acorda Therapeutics'operations, unfavorable results from its preclinical programs, andfailure to protect its intellectual property or to defend against theintellectual property claims of others. These and other risks aredescribed in greater detail in Acorda Therapeutics' filings with theSecurities and Exchange Commission. Acorda Therapeutics may notactually achieve the goals or plans described in its forward-lookingstatements, and investors should not place undue reliance on thesestatements. Acorda Therapeutics disclaims any intent or obligation toupdate any forward-looking statements as a result of developmentsoccurring after the date of this press release.

About Acorda Therapeutics

Acorda Therapeutics is a biotechnology company developingtherapies for SCI, MS and related nervous system disorders. TheCompany's marketed products include Zanaflex Capsules(TM) (tizanidinehydrochloride), a short-acting drug indicated for the management ofspasticity. For full prescribing information, please go towww.zanaflexcapsules.com. Acorda's lead clinical-stage product isFampridine-SR, which is in a Phase 3 clinical trial for MS. TheCompany's pipeline includes a number of products in development forthe treatment, regeneration and repair of the spinal cord and brain.

Acorda Therapeutics, Inc
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)

Three Months Ended
March 31,
2006 2005
----------- -----------

Gross sales - Zanaflex $ 3,874 $ -
Less: discounts and allowances (196) (140)
----------- -----------
Net sales 3,678 (140)
Grant revenue 122 25
----------- -----------
Total net revenue 3,800 (115)
Less: cost of sales (1,041) (481)
----------- -----------
Gross profit 2,759 (596)


Operating expenses:
Research and development 3,277 2,103
Sales and marketing 4,562 2,302
General and administrative 2,278 2,112
----------- -----------
Total operating expenses 10,117 6,517

----------- -----------
Operating loss (7,358) (7,113)
----------- -----------

Other income (expense):
Interest and amortization of debt discount
expense (304) (149)
Interest income 262 110
Other income 2 -
----------- -----------
(40) (39)
Cumulative effect of change in accounting
principle 454 -
----------- -----------
Net loss (6,944) (7,152)

Beneficial conversion feature, accretion of
issuance costs, preferred dividends, and
fair value of warrants issued to
convertible preferred stockholders (37,168) (6,212)
----------- -----------
Net profit (loss) allocable to common
shareholders $ (44,112) $ (13,364)
=========== ===========

Net loss per share allocable to common
stockholders - basic and diluted $ (4.05) $ (67.65)


Weighted average common shares outstanding
used in computing net loss per share
allocable to common stockholders -
basic and diluted 10,879 198




Acorda Therapeutics, Inc
Consolidated Balance Sheet Data
(in thousands)
(Unaudited)

March 31, Dec. 31,
2006 2005
------ ------

Assets
Cash and cash equivalents $ 25,961 $ 11,761
Short-term investments 3,990 2,001
Finished goods inventory held by the Company 5,208 5,587
Property and equipment, net 1,577 1,707
Intangible assets, net 5,768 5,952
Total assets $ 49,553 $ 33,912


Liabilities and stockholders' equity (deficit)
Accounts payable, accrued expenses and other
liabilities $ 4,808 $ 14,060
Deferred product revenue 16,516 16,736
Total current liabilities 26,554 35,858
Long term liabilities 23,282 23,377
Stockholders deficit (283) (116,536)
Total Liabilities and Stockholders deficit $ 49,553 $ 33,912