Questcor Pop: Acquisition Trumps Competition

Questcor has been beset by short sellers -- over half its float is sold short -- who cite a myriad of issues from reimbursement pressure for its flagship product Achthar to government inquiries and potential competition from overseas.

Well, scratch one concern off the list. Questcor just struck a deal to acquire Novartis drug Synacthen. Shares popped 15% yesterday and tacked on an additional 7% in gains today.

In this video, health-care analyst David Williamson discusses the deal in further detail and the implications for Questcor investors.

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Follow David on Twitter @MotleyDavid.


Read/Post Comments (4) | Recommend This Article (3)

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.

  • Report this Comment On June 13, 2013, at 12:07 AM, NotTheDroid wrote:

    Are all the Motley Fool reporters really this behind in the status of Questcor, let alone the actual real story behind the short attacks?

    All the articles and even this video, is not much more than a 9 month old rehash of debunked information.

    You are also oblivious to the value of Synacthen as a separate chemical entity and the value of helping Novartis rebuild their market overseas. It's been severely lacking for a few years.

    Your blind humor regarding 'burying Synacthen' is also blatantly uneducated. Did you even attempt to contact the company before deciding to make that statement of their intentions.

    You know, like reporters and researchers used to do when they had ethics and weren't just bloggers spewing whatever came to mind.

    You seem like a nice kid with some brains though, so my advice is to separate yourself from the herd of your generation and actually become a researcher and real reporter. Your own investments will benefit too.

  • Report this Comment On June 13, 2013, at 10:41 AM, Grayhouse wrote:

    "MS is their largest revenue generator". Well, that was last years news. Have you heard that Questcor now has a Nephrology division? hmmm... Maybe read the most current earnings report. One point to prove you do ZERO homework before you report on Questcor.

    "Insurance companies are pushing back on paying for Acthar, like Aetna". Name one other insurance company that has released a statement that they won't pay for Acthar. Just one other!! You call out one insurance company vs the multiple companies that have stated they will pay for Acthar on label. Not to mention the Medicaid reimbursement.

    You read that teleprompter so fast you had one run on sentence after another. Nice try, but this news is getting a lot of positive play.

  • Report this Comment On June 13, 2013, at 12:28 PM, drdonrs wrote:

    David, you appear to be so misinformed. Let's start with insurance...Aetna story is old hat and not germane at all. There are reimbursements for Acthar via the appeal process. Ever hear of the "external appeal"?

    As for Synacthen, where do you have the temerity to state that they are burying it? You couldn't be more wrong. The intention is to have it approved here in the US for many other indications.

    If you are going to do a story, do your research, in depth, and present your information and conclusions in an orderly, honest manner. Otherwise you simply fall into the big black hole occupied by "hacks".

  • Report this Comment On June 14, 2013, at 10:32 AM, mapres wrote:

    I understand the need to get a story out quickly on every stock that is making headlines, but there's little excuse for putting out a report that merely rehashes very old news. At least you should read a few quarterly reports and news articles (other than your own) for the past few months before publishing something.

    The worth of your brand is diminished every time slapdash reports like this are produced.

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