Questcor Pharmaceuticals Inc.
) reported second quarter 2014 earnings per share of $1.71, up from
the year-ago earnings of $1.25 per share. Excluding share- based
compensation expense, one-time items and non-cash expenses,
earnings stood at $1.85 per share.
Excluding share-based compensation expense, earnings came in at
$1.76 per share. The Zacks Consensus Estimate was $1.93.
Questcor Pharmaceuticals, Inc - Earnings
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Second quarter 2014 revenues climbed 51% to $278.8 million,
easily beating the Zacks Consensus Estimate of $264 million.
Quarter in Detail
Higher revenues were driven by increased use of H.P. Acthar Gel
in patients suffering from rheumatoid arthritis, systemic lupus
erythematosus, dermatomyositis, polymyositis, nephrotic syndrome,
multiple sclerosis exacerbations, infantile spasms and symptomatic
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 8,850 vials of Acthar during the
second quarter of 2014, up 26.0% year over year.
In the reported quarter, Acthar's new paid prescriptions were
about 2,775 to 2,800, up 23% from the year-ago quarter.
Research and development (R&D) expenses were $22.0 million
in the reported quarter, up 79.8% year over year. General and
administrative expenses came in at $26.8 million, up 104.5% and
selling and marketing expenses were $57.0 million, up 49.8%.
Questcor is working to expand Acthar's label further for the
indications of amyotrophic lateral sclerosis (ALS), diabetic
nephropathy and acute respiratory distress syndrome (ARDS).
Acquisition by Mallinckrodt
In Apr 2014, Questcor agreed to merge with Mallinckrodt (
). 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 Questcor share held. Based on the closing price of
Mallinckrodt on Jul 18, 2014, the total value comes to $6.3
billion. Mallinckrodt expects to complete the transaction in Aug
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). Some better-ranked
stocks in the healthcare sector include Salix Pharmaceuticals (
) and Ironwood Pharmaceuticals (
). While Salix Pharma carries a Zacks Rank #1 (Strong Buy),
Irownood Pharma is a Zacks Rank #2 (Buy) stock.
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