Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Questcor: A Risky Proposition?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

There's no shortage of reporting around the risks facing Questcor Pharmaceuticals'  (Nasdaq: QCOR  ) . Still, the insurance reimbursement risks and an ongoing government investigation into sales practices have left investors scratching their heads. But those aren't the only issues investors need to be aware of with this stock.

In a brand-new premium report I created along with Brenton Flynn, we outline all of the key issues surrounding Questcor. Follow along below for a short preview of the "Risks" section of this report.

Multiple single points of failure
Questcor currently relies on one source for Acthar's active pharmaceutical ingredient and uses one manufacturer for the final product. These multiple single points of failure present risks for the company should problems develop with any of its business partners.

The company contracts with BioVectra to supply the active pharmaceutical ingredient for Acthar. It contracts with Cangene for the finished product. One threat from these single-source relationships is that one or both of the companies could cancel agreements with Questcor. That risk is mitigated to some extent with long lead-time clauses. However, if a cancellation occurred, Questcor could encounter difficulties securing alternate sources.

The bigger threat is from either BioVectra or Cangene encountering major problems in fulfilling their obligations to Questcor. Any difficulties of this kind would jeopardize Questcor's ability to ship Acthar and could hurt revenue.

Challenges from new products
Questcor faces two major risks on the competitive front. The more serious risk is that another company develops a product that treats multiple sclerosis flares more effectively or even prevents the flares.

The FDA recently approved Sanofi's new MS drug, Aubagio. The drug holds promise for helping patients who experience a relapsing form of the disease. Biogen Idec is also developing another drug that could be effective in reducing the likelihood of MS relapses.

The lesser risk for Questcor is that another company could make its own version of Acthar. The company does not hold any current patents for the drug. The most likely reason why no one has yet made a generic version is that the manufacturing process is very complex. However, a real possibility exists that other competitors could emerge in the future.

We hope you enjoyed this sneak peek at our brand-new premium research report on Questcor. To get a more in-depth view of the company, multiple reasons to buy and sell the stock, and a full year of analyst updates, claim a copy today by clicking here now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2099039, ~/Articles/ArticleHandler.aspx, 10/25/2016 4:46:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
QCOR.DL $0.00 Down +0.00 +0.00%
Questcor Pharmaceu… CAPS Rating: **
BIIB $290.78 Up +0.13 +0.04%
Biogen CAPS Rating: *****
SNY $37.76 Up +0.01 +0.03%
Sanofi CAPS Rating: *****