Dividend Raise Pushes Questcor Higher - Analyst Blog

By
A A A

The share price of Questcor Pharmaceuticals, Inc. ( QCOR ) is on the rise since the announcement of a hike in its quarterly dividend payment. Questcor declared a 20% rise in dividend to 30 cents from 25 cents per share, which is payable on Oct 30 to shareholders of record as on Oct 22, 2013.

Prior to this, Questcor had increased its quarterly dividend by 25% in Feb 2013. Questcor's dividend policy aims at a payout ratio of 20% of its annual net income.

A strong cash position and robust Acthar usage led to the rise in dividends. On Oct 4, 2013, cash and investments were $278 million. The company intends to utilize its cash balance for research and development activities and investment purposes.

Acthar, an injectable drug, is the only marketed product at Questcor. Acthar generated sales of $177 million in the second quarter of 2013. It is approved by the U.S. Food and Drug Administration (FDA) for as many as 19 indications, including nephrotic syndrome (NS), dermatomyositis, polymyositis, systemic lupus erythematosus, rheumatoid arthritis, multiple sclerosis (MS) relapses and infantile spasms (IS).

The company shipped 7,050 vials of Acthar during the second quarter of 2013, up 50% year over year and 46% sequentially. Acthar's new paid prescriptions climbed 35% year over year in the second quarter of 2013.

Questcor carries a Zacks Rank #3 (Hold). Currently, companies like Roche ( RHHBY ), Isis Pharmaceuticals, Inc. ( ISIS ) and Actelion Ltd. ( ALIOF ) look more attractive with a Zacks Rank #1 (Strong Buy).



ACTELION LTD (ALIOF): Get Free Report

ISIS PHARMACEUT (ISIS): Free Stock Analysis Report

QUESTCOR PHARMA (QCOR): Free Stock Analysis Report

ROCHE HLDG LTD (RHHBY): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ALIOF , IS , ISIS , MS , NS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

83,946,369
  • $16.40 ▼ 1.20%
65,919,147
  • $102.99 ▲ 0.51%
63,004,409
  • $42 ▲ 4.53%
42,618,740
  • $7.93 ▼ 2.94%
41,388,613
  • $78.37 ▼ 0.41%
40,438,996
  • $3.81 ▲ 14.76%
39,835,674
  • $12.32 ▲ 2.41%
38,147,728
  • $12.83 ▼ 2.80%
As of 10/22/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com