Questcor Pharmaceuticals Inc.
) reported first quarter 2014 earnings per share of $1.24, up
from the year-ago earnings of $0.85 per share. Excluding share
based compensation expense and one-time items, earnings stood at
$1.40 per share. The Zacks Consensus Estimate was $1.71.
First quarter 2014 revenues climbed 68% to $227.1 million, but
missed the Zacks Consensus Estimate of $241 million.
Quarter In Detail
The higher revenues were driven by increased use of H.P.
Acthar Gel in patients suffering from dermatomyositis,
polymyositis, rheumatoid arthritis, and systemic lupus
Strong performance of H.P. Acthar Gel in the nephrotic
syndrome (NS), multiple sclerosis (MS) relapses and infantile
spasms (IS) indications also contributed to the substantial
growth in revenues.
We note that Acthar, an injectable drug, has been approved by
the U.S. Food and Drug Administration for as many as 19
indications. Questcor shipped 7,080 vials of Acthar during the
first quarter of 2014, up 47.0% year over year.
In the reported quarter, Acthar's new paid prescriptions were
about 2,325 to 2,350, up 35% from the year-ago quarter. Acthar's
new paid prescriptions for the treatment of rheumatology-related
indications were between 570 and 580, up significantly from 140
to 150 prescriptions filled in the year-ago quarter.
Research and development (R&D) expenses were $19.9 million
in the reported quarter, up 84.0% year over year. General and
administrative expenses came in at $22.6 million, up 80.3% and
selling and marketing expenses were $47.0 million, up 32.7%.
We remind investors that Questcor acquired development and
commercialization rights to Synacthen and Synacthen Depot from
) in Jun 2013.
Acquisition by Mallinckrodt.
) announced that it will acquire Questcor for $5.6 billion.
As per the terms of the agreement, shareholders of Questcor
will receive $30.00 per share in cash and 0.897 Mallinckrodt
shares for each share of Questcor common stock. The total
consideration comes to $86.10 per Questcor share. Mallinckrodt
expects to complete the transaction in the third quarter of
Post merger, Mallinckrodt shareholders will own approximately
50.5% while former Questcor shareholders will own approximately
49.5% of the combined company's stock.
Questcor carries a Zacks Rank #3 (Hold). Currently, companies
) look attractive with a Zacks Rank #1 (Buy).
MALLINCKRODT PL (MNK): Free Stock Analysis
NOVARTIS AG-ADR (NVS): Free Stock Analysis
QUESTCOR PHARMA (QCOR): Free Stock Analysis
SALIX PHARM-LTD (SLXP): Free Stock Analysis
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