The share price of
Questcor Pharmaceuticals, Inc.
) 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
Isis Pharmaceuticals, Inc.
) look more attractive with a Zacks Rank #1 (Strong Buy).
ACTELION LTD (ALIOF): Get Free Report
ISIS PHARMACEUT (ISIS): Free Stock Analysis
QUESTCOR PHARMA (QCOR): Free Stock Analysis
ROCHE HLDG LTD (RHHBY): Get Free Report
To read this article on Zacks.com click here.