ARTICLE | Company News

Acorda adopts shareholder rights plan

September 8, 2017 8:42 PM UTC

On Sept. 1, Acorda Therapeutics Inc. (NASDAQ:ACOR) said its board adopted a shareholder rights plan, commonly referred to as a poison pill, giving shareholders the right to purchase one preferred share for every share held. Broadly speaking, poison pills are designed to dilute the ownership stake of investors with large positions, typically greater than 10%.

Acorda said the move is in response to "the recent accumulations of significant portions" of Acorda's stock. According to an SEC filing dated Aug. 29, Scopia Capital Management LP holds an 18.2% stake in Acorda. The biotech said the rights plan will be triggered if any person or group acquires a 15% stake in the company. Acorda said the rights plan exempts any shareholder currently owning 15% or more shares, but added that it will be triggered if those investors acquire additional shares...

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Acorda Therapeutics Inc.