Back to top

Analyst Blog

Questcor Pharmaceuticals Inc. reported second quarter 2013 earnings per share, excluding the impact of a negative Medicaid adjustment, of $1.25, up 92.3% from the year-ago period. Earnings surpassed the Zacks Consensus Estimate of $1.13 per share. Including one time items, second quarter 2013 earnings were $1.12 per share.

Second quarter 2013 revenues climbed 64.1% to $184.6 million, surpassing the Zacks Consensus Estimate of $168 million. Revenues consisted of $177 million from Acthar and the remaining from BioVectra. Excluding a one-time charge related to an incremental Medicaid rebate liability of $11.5 million, total revenues amounted to $196.1 million.Strong performance of H.P. Acthar Gel in the nephrotic syndrome (NS), dermatomyositis, polymyositis, systemic lupus erythematosus, rheumatoid arthritis, multiple sclerosis (MS) relapses and infantile spasms (IS) indications contributed to the massive growth. 

Acthar, an injectable drug, is the only marketed product at Questcor. It is approved by the U.S. Food and Drug Administration (FDA) for as many as 19 indications. The company shipped 7,050 vials of Acthar during the second quarter of 2013, up 50% year over year and 46% sequentially.

In the reported quarter, Acthar’s new paid prescriptions were about 2,250 to 2,275, up 35% year over year.

In the second quarter of 2013, research and development (R&D) expenses were $12.2 million, up 44.3%. The increase was attributable to the company’s efforts to develop its pipeline. In the reported quarter, general and administrative expenses were $13.1 million, up 51.8% and selling and marketing expenses were $37.9 million, up 37.3%.

Acthar is currently under evaluation for amyotrophic lateral sclerosis (phase II), diabetic nephropathy (phase II), idiopathic membranous nephropathy (phase IV), lupus (phase IV) and lupus exacerbations (investigator-initiated study).

Questcor acquired development and commercialization rights to Synacthen and Synacthen Depot from Novartis AG (NVS - Analyst Report) in Jun 2013.

Our Take

This was a strong quarter for Questcor with demand for Acthar rising mainly because of expanded commercialization efforts. Questcor’s efforts to educate rheumatologists about Acthar also improved revenues. The purchase of Synacthen and Synacthen Depot rights along with the acquisition of BioVectera Inc. completed earlier this year provides Questcor an opportunity for international expansion and diversification of revenues. Moreover, the FDA approval of Synacthen would consolidate Questcor’s presence in the U.S.

Questcor carries a Zacks Rank #3 (Hold). Currently, companies like Avanir Pharmaceuticals, Inc. (AVNR - Snapshot Report) and Auxilium Pharmaceuticals Inc. (AUXL - Analyst Report) look more attractive with a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%