54.7 F
Laguna Hills
Tuesday, Mar 19, 2024
-Advertisement-

Questcor Shares Soar on More Prescriptions for Flagship

“We believe we may still be early on in penetrating this market.” —Questor Chief Executive Dan Bailey

Questcor Pharmaceuticals Inc.’s ability to capitalize on multiple uses for its sole drug continues to fuel sales and earnings growth.

The Anaheim-based drug maker’s third-quarter profit nearly doubled on more prescriptions for its Acthar injectable gel, sending shares soaring.

Acthar is used to treat multiple sclerosis flare-ups, infantile-spasm epilepsy and the kidney disorder nephrotic syndrome.

The drug maker said third-quarter profit grew 96% to $22.9 million from a year ago.

Analysts on average expected Questcor’s third-quarter profit to come in at $16.5 million.

Questcor’s quarterly revenue shot up 93% to $56.1 million, surpassing Wall Street projections of $53.2 million.

Investors responded, sending Questcor’s shares up about 13% in after-hours trading immediately after it reported results. The company had a market value of some $2.6 billion at midweek.

“The highlights demonstrate that Questcor’s strategy to sell more Acthar continues to generate increasing revenue and earnings,” Don Bailey, Questcor’s chief executive, said in a conference call with investors and analysts.

Much of Questcor’s third-quarter performance was driven by a big increase in the number of prescriptions for Acthar in treating multiple sclerosis flare-ups. Paid prescriptions were up 174% from the same quarter a year ago, to 886 from 323.

Acthar multiple sclerosis prescriptions are growing, according to Bailey, because of “positive outcomes” for patients and more productivity from its commercial teams, including its sales force.

Questcor is “steadily expanding the number of both new and repeat Acthar prescribers and broadening participation across all regions of the country,” said Steve Cartt, the drug maker’s chief business officer, on the call.

With 500 doctors currently prescribing Acthar for multiple sclerosis and the Questcor sales force calling on more than 4,000 neurologists, the drug maker sees an opportunity for continued growth, Cartt noted.

“We believe we may still be early on in penetrating this market,” Bailey said.

Bailey estimated that there are 200,000 multiple sclerosis relapses annually in the U.S., and based on “the annualized third-quarter prescription count of about 4,000 Acthar MS prescriptions, we likely only have single-digit penetration of this market.”

· Headquarters: Anaheim

· Business: drug maker

· Founded: 1990

· Ticker symbol: QCOR (Nasdaq)

· Market value: about $2.6 billion

· Notable: Q3 profits nearly doubled to $22.9 million on sales of Acthar drug

Common Competitor

Steroids are the most common competitor for Acthar in terms of multiple sclerosis flare-up treatments.

Acthar for multiple sclerosis “growth was particularly strong, with added benefit of only 19% sales discounts due to mix of paid/rebated (prescriptions) that appears sustainable, as well as lower spending,” said Mario Corso, an analyst with Caris & Co. in Del Mar.

Questcor said that use of Acthar for infantile-spasm epilepsy and nephrotic syndrome also increased in the quarter, with the company hiring sales representatives for nephrotic syndrome, growing that part of its sales force from five to 28 workers. As a result, Questcor’s third-quarter sales and marketing expenses grew 79% to $13.7 million, up from $7.7 million in last year’s third quarter.

Acthar prescription growth for nephrotic syndrome, which is characterized by a high level of protein in patients’ urine, was roughly tracking the pattern Questcor saw for multiple sclerosis three years ago, Bailey said.

“It’s important to note that each Acthar nephrotic syndrome (prescription) generates more net sales than MS due to the higher number of vials needed to complete the treatment for nephrotic syndrome,” he said.

Analyst Corso wrote that while investors are interested in Acthar for nephrotic syndrome, “MS is stealing the show and net pricing is cranking the model.”

No Generics

Also, Questcor should be unconcerned about possible generic competition, according to Corso.

“We believe that the ‘trade secrets’ involved in the formulation/manufacture of Acthar and the absence of full characterization provide significant protection against the FDA approving generic/bioequivalent products,” he wrote.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-