It has been an interesting 48 hours for Questcor Pharmaceuticals (QCOR). Yesterday in an SEC filing the company reported blockbuster sales of it's sole drug Acthar. The stock surged. Today, mid-day, Citron Research (a noted short seller) issued a stinging report on the company that was very similar to the attack by another website back in January of this year. That attack dropped the stock from the low $40s to the mid $30s instantly, and we had a similar reaction today. The timing was excellent since I believe the company is not allowed to respond to the "allegations" (which are things such as there will be a generic drug coming down the pike someday to compete with Acthar) as it is in a quiet period ahead of earnings. That said they are at a conference this Friday so should be interesting, although they will probably repeat the exact same defense they rolled out 6 months ago.
Can't win for losing on this one – a day after reporting this type of data the company gets blasted.
- The company estimated it sold 400 to 410 paid prescriptions for the leading indication, multiple sclerosis, up at least 50% from June 2011. Anti-nephrotic syndrome prescriptions, which Questcor started actively marketing last year, jumped more than fivefold to 115 to 120.
- Jefferies analyst Biren Amin raised his Q2 revenue estimate to $111 million from $100 million, more than double the year-ago quarter. He accordingly added 10 cents to his EPS estimate, now 64 cents. That would be a 178% advance from the year earlier. Amin raised his price target to 60 from 56.
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