Questcor Pharmaceuticals Inc.

Questcor Pharmaceuticals, Inc. (QCOR - Snapshot Report) shares have spiked the past few months as analysts raise estimates and the company continues to repurchase shares.

Company Description

Questcor Pharmaceuticals, Inc. primarily develops pharmaceutical drugs, mainly in the US. Doral and H.P. Acthar Gel are its two products and are used in the treatment of insomnia and multiple sclerosis, respectively.

In addition to marketing these two drugs, the company develops new pharmaceuticals. Questcor is headquartered in California, with roughly 30 employees, and a market cap of just over $500 million.

Sales Up 64%

When the company released its quarterly earnings report on Oct 30, it included sales of $24.2 million, up 64% since this time last year. Net income rose 78% to $15.3, up from $8.6 million.

Earnings per share came in at 13 cents, 30% above the 10 cents anticipated by Wall Street. This was the second consecutive surprise for Questcor.

Repurchasing Stock

Through Sep 2008 Questcor repurchased 7.5 million shares of common stock. The total value was about $46 million, for an average share price of nearly $6.13 per share. Since then, the stock is trading much higher.

Questcor has 3.5 million shares left under its pre authorized repurchase program.

Estimates on the Rise

While 2008 is expected to be a 13% decrease in earnings, 44 cents per share down from 50 cents, analysts are bullish for 2009. The consensus for next year is now 56 cents, a 29% year-over-year growth and up 12% over the past 90 days.

The Chart Shares of QCOR have become increasingly volatile over the past few months and volume continues to grow. Take a look at the chart below.