Questcor Pharmaceuticals Inc., one of Orange County’s more volatile public companies, recently released a lengthy federal filing addressing what it characterized as a “bear raid” by short sellers.
The Anaheim-based drug maker’s primary drug, H.P. Acthar Gel, has been in the crosshairs of short sellers of its stock who question the drug’s effectiveness, among other things.
Acthar is used to treat several conditions, including rheumatoid arthritis, multiple sclerosis flare-ups, and nephrotic syndrome, a kidney disorder.
“Despite [our] focus on, and track record of creating value for Questcor’s stakeholders, including patients, physicians and shareholders, since at least January 2012, Questcor has been the subject of a ‘short attack’ or a ‘bear raid,’ ” the drug maker said in a Securities and Exchange Commission filing.
Questcor said it believed the attack “has taken several forms” and said “one entity” has published several reports about the drug maker, including one on Feb. 27 “that has resulted in volatility in the company’s share price.”
It didn’t name the entity in its filing, but longtime Questcor critic and short seller Citron Research published a report on Feb. 27 claiming Acthar faced “severe risk” of being taken off the market by the Food and Drug Administration.
Questcor shares are up 16% since the start of the year, with a recent market value of $3.6 billion, even with the gyrations. It said it expects the short attack will continue, “although it is unclear what future attempts will be made in an effort to reduce the price of [our] stock.”
The company followed that statement with excerpts from an earlier federal filing addressing short sellers’ concerns. Those excerpts addressed whether or not Acthar was a steroid, how many doctors prescribed the drug, and Questcor’s support of programs designed to help patients pay for Acthar.
“The key point often overlooked in all of this background noise, however, is something that Questcor employees hear regularly from doctors—that Acthar often helps patients with serious medical conditions who are in need of an alternative treatment option,” Questcor said.
Medical Resorts for Boomers
Mission Viejo-based Ensign Group Inc. is adding a new branch to its tree.
The operator of nursing homes and other healthcare facilities said this month that it was working with Carmel, Ind.-based Mainstreet Property Group LLC to open what it called “medical resorts” that target baby boomers.
The two companies will build and operate the medical resorts, known as NextGeneration, in Texas and Kansas, according to Ensign.
The company said in a news release that the resorts will have “a wide array of activities and services in comfortable, spa-like surroundings.”
Adding medical resorts “provides another lever we can pull as we seek to become the provider of choice in every market we serve,” said Christopher Christensen, Ensign’s chief executive.
The release noted that Ensign and Mainstreet also signed a development deal to grow the relationship and partner on medical resorts in more locations.
Dental Pay Plan Grows
Santa Monica-based Brighter.com introduced its Brighter Pro product in Orange County.
The company operates an online marketplace that allows patients who pay for their services with cash to find and book appointments with dentists.
The company said on its website that the service allows such patients to “manage their dental health by giving them free access to pre-negotiated prices” at hundreds of dentists.
It said Brighter Pro will be available through brokers and employers and that patients with dental insurance can use the service for online scheduling, although the rates it’s negotiated apply to patients who pay for procedures out of pocket.
Brighter.com was founded by Jake Winebaum, an entrepreneur whose past companies include Business.com, which he sold to R.H. Donnelley Corp. Brighter.com’s venture capital backers include Menlo Park-based Mayfield Fund.
Bits & Pieces
San Clemente-based Sensory Medical Inc. raised $500,000, according to a Securities and Exchange Commission filing. Sensory Medical makes devices used to treat restless leg syndrome, a neurological disorder. The company didn’t reveal the investor or plans for the proceeds. … InstaMed Inc., a healthcare payment processing company with offices in Newport Beach and Philadelphia, introduced an app that allows providers to collect patients’ payments from any location where the doctor and patient interact.
