Management Is Buying at Questcor, Should You?

After a panicked Questcor (Nasdaq: QCOR  ) sell-off on Friday, the stock has stabilized. What was the cause for alarm? It turns out that Questcor's champion drug, Acthar -- which has an orphan designation from the Food and Drug Administration for the treatment of infantile spasms and is the major money-maker for Questcor -- may have a major new generic competitor from abroad poised to challenge its position. And the competition is a lot cheaper. Motley Fool health care bureau chief Brenton Flynn takes us through what this may mean for the company, why the alarm over this may all be just a storm in a teacup, and what to keep your eye on going forward.

Questcor is one of the most debated names in all of biotech. Its key drug Acthar is growing at a torrid pace -- and minting money in the process. However, these recent events have created significant doubts about Questcor's future. Can this drug stay ahead of the competition and continue to be a win for investors? Will insurance companies continue to cover the drug? Will a government investigation lead to huge fines? We highlight these high-profile issues inside our brand new premium research report on Questcor. In it, you'll learn about the key opportunities and threats facing the company, as well as multiple reasons to buy and sell the stock. We're providing a full year of analyst updates as key news hits, so make sure to claim a copy today by clicking here now.

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  • Report this Comment On November 08, 2012, at 2:34 PM, goodvsevil wrote:

    First of all, you should do your research accurately. That product is NOT bioequivalence. The product that you mention is counter-indicated in children UNDER 3. What this means is that you CANNOT use it in children under 3 because of toxicity issues. That is why that product is not used in the US

    You should stop writing these FALSE articles for the short sellers. Why do you people want to take QCOR down? Making money by cheating people.

    QCOR does not have competition because it is a highly complex formulation and this Ceruim group certainly does NOT have the formula. How do you have a product for Infantile Spasms when you cant use in children under 3. Also it would take years of clinical trials and $700m-$1B to take a product to market!

  • Report this Comment On November 09, 2012, at 7:23 AM, XMFNoonan wrote:

    Hi goodsvsevil,

    Perhaps generic isn't the proper term, but I think impact from a competitor like this would be comparable to that of a generic competitor for any other drug.

    If you watch the full video I don't claim to know what the odds are that this will be a real issue. Anyone claiming that they do is doing so through pure speculation. It's simply something to keep an eye on.

    Take a look at this data that Questcor cites on it's website regarding the use of ACTH in Nephrotic Syndrome. The chart is at the bottom under the title "ACTH Efficacy Comparable to the Ponticelli Regimen".

    While the footnote makes it clear that Acthar and Syncathen aren't exactly the same, you wouldn't think Acthar would use that data in its own promotional material if they weren't, at a minimum, comparable.


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