Shares of Anaheim-based Questcor Pharmaceuticals Inc. were down in Monday trading after a published report raised concerns over sales of its lead drug.
Questcor shares closed down about 6% after falling as much as twice that earlier Monday.
The company has a market value of $900 million.
An article in Barron’s said Questcor could face vanishing profits on sales of its H.P. Acthar Gel for multiple sclerosis patients covered by Medicaid managed care.
The company may not have sufficient cash reserves to cover federal rebate requests for Acthar, according to the article.
A provision in federal healthcare reform offers a 100% rebate on Acthar to Medicaid plans.
Questcor, which moved to Orange County from the Bay Area last fall, said that it started a $5.6 million reserve in 2010 and expects to record an additional reserve of $2.6 million to account for Medicaid changes.
The company has annual sales of about $120 million. It’s set to report its fourth-quarter and 2010 results on Feb. 23.
Acthar, an injectable drug, is cleared for various usages, including infantile spasms, a rare form of epilepsy, as well as treating a kidney disorder.
