What to Make of Questcor Management

One of the top issues we focus on at the Fool is understanding the quality of a company's management team. More specifically, we place a particular focus on the top dog at a company: its chief executive officer. In this video, Brenton Flynn looks at Questcor Pharmaceuticals (NASDAQ: QCOR  ) President and CEO Don Bailey. While his reign took the company to unforeseen heights, there's been plenty of debate around how he went about it -- shrewd business or profiteering?

Questcor is one of the most debated names in all of biotech. Its premium-priced drug, Acthar, is growing at a torrid pace -- and minting money in the process. However, recent events have created significant doubts about Questcor's future. 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.


Read/Post Comments (5) | Recommend This Article (3)

Comments from our Foolish Readers

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  • Report this Comment On February 04, 2013, at 11:33 AM, NotTheDroid wrote:

    Too funny... Brenton can let 4 days go by without making another bash video and he still hasn't come up with anything new... just rehashing same old claims time and time again.

    I wonder who has a short position?

    Yes, The Fool used to be good, then fools took it over, and now we have this....

  • Report this Comment On February 04, 2013, at 6:05 PM, drdonrs wrote:

    What a sham MF and Brenton Flynn are. You latch onto a company, show your lack of knowledge, and look all the while like a real huckster shilling reports that are anything but premium. You almost sound like a devotee of Andrew Left and his "Shitron". Get a life Brenton and learn about the subject for which you are masquerading as an expert.

  • Report this Comment On February 05, 2013, at 2:29 AM, Grayhouse wrote:

    Exactly how many "millions & millions" of dollars has Don Bailey cashed in? Can you be more specific on this very important piece of investigative reporting? What percent of his portfolio does this make up? Wouldn't any financial investor advise clients to diversify? Don Bailey has been with Questcor for "years and years" even when they were going bankrupt and his stock was worth zero. Now that it has appreciated, does it make sense to diversify some of that? Funny how you think that Questcor being "savvy" and buying Acthar cheap is a bad thing. In most investments you would be applauding management for being so smart and getting a good deal. Once again, you can't even get through a video pronouncing words correctly. Why should we think your investment advice is any better?

  • Report this Comment On February 05, 2013, at 4:45 PM, samhorn31 wrote:

    Just an fyi. Bailey has been exercising options consistently every month since 2011. Some of these options were exercised from $0.44 to $57.89 per share, and has continued to do so after the fall in the stock. Although investors do not like to see insiders selling, Bailey has been selling since his start at QCOR. So, it is hard to make an argument that he only exercised this options at the height of the stock.

    http://biz.yahoo.com/t/41/4165.html

  • Report this Comment On February 07, 2013, at 8:13 AM, TMFNoonan wrote:

    "Mr. Bailey joined Questcor in May 2007 as Interim President, and was appointed to his current position in November 2007. Mr. Bailey joined Questcor's Board of Directors in May 2006"

    That's not an incredibly long time in my book. I know there are some time limitations with regards to option exercise, but the fact of the matter is Bailey's timing was nothing short of impeccable, and he hasn't been exercising options for years and years as some commenters have suggested. Just take a peak at these insider transactions in the google doc below.

    https://docs.google.com/spreadsheet/ccc?key=0ApdsyEd0pm33dEJ...

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