Acorda Therapeutics was up over 4% Monday morning after hedge fund Scopia Capital Management LP disclosed in a filing with U.S. regulators a 16.5% equity interest in the company.
In a letter to management, Scopia Capital urged the company’s board to pursue an immediate review of all strategic alternatives, including a sale of the company. “We are highly confident that multiple qualified, potential buyers would be interested in engaging with Acorda at a significant premium to its present value,” Scopia said in a statement. “Pursuing an independent strategy now is gambling with shareholder capital. Selling the company is being a responsible steward of capital. We expect the company to make the correct choice.”