Investors traded down shares of Questcor Pharmaceuticals Inc. after a short-seller reported in an online newsletter last week that Aetna Inc. intends to limit coverage of the Anaheim-based drug maker’s sole drug.
Questcor makes H.P. Acthar Gel, an injectable drug that is approved for 19 uses. The drug maker primarily sells it for nephrotic syndrome—a kidney disorder—and for treating multiple sclerosis flare-ups.
Hartford, Conn.-based Aetna recently issued a policy bulletin that reversed its previous coverage of Acthar and said clinical research supported use of the drug only for infantile spasms, a rare condition. Questcor markets the drug for several other uses.
Citron Research, a longtime Questcor critic and a short seller of its shares, published an article about Aetna’s policy bulletin on its website. Citron repeatedly has said Acthar’s cost—running $40,000 to $100,000 per treatment—can’t be backed up by superiority claims.
Questcor issued a statement a day after the news regarding Aetna, saying it didn’t expect Aetna’s decision to limit coverage to hurt business. That prompted a partial rebound in Questcor shares.
Questcor Chief Executive Don Bailey said on a call with analysts and investors that Aetna accounts for 5% of Questcor’s prescriptions for H.P. Acthar Gel.
—Vita Reed
