Questcor Pharma Shares Jump As Q2 Results Beat View

(RTTNews) - Biotechnology company Questcor Pharmaceuticals Inc. (QCOR) on Tuesday reported a 67 percent surge in profit for the second quarter from last year on strong revenue growth. Both revenue and adjusted earnings per share beat analysts' expectations. Shares of Questcor gained more than 14 percent in extended trades.

The company's results were aided by the expanded usage of H.P. Acthar Gel by rheumatologists in the treatment of patients suffering from dermatomyositis, polymyositis, systemic lupus erythematosus, and rheumatoid arthritis.

In addition, results were driven by increased prescribing by nephrologists in the treatment of nephrotic syndrome or NS and the treatment of multiple sclerosis or MS relapses as well as infantile spasms. BioVectra, the company's specialty manufacturing subsidiary that was acquired in January 2013, had net sales of $7.53 million in the quarter.

California-based Questcor's second-quarter net income was $69.12 million or $1.12 per share, up from $41.51 million or $0.65 per share in the year-ago period.

Excluding items, adjusted net income for the quarter were $83.23 million or $1.35 per share, compared with $44.24 million or $0.69 per share a year ago. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $1.00 per share. Analysts' estimates typically exclude special items.

Consolidated net sales for the quarter surged 64 percent to $184.57 million from $112.45 million in the prior-year period. Analysts had a consensus revenue estimate of $168.98 million for the quarter.

Questcor shipped 7,050 vials of Acthar during the quarter, up 50 percent from last year. The company noted that the first full quarter of its commercial rheumatology effort generated over 300 prescriptions.

Total new paid prescriptions for Acthar were approximately 2,250 to 2,275 in the second quarter, an increase of about 35 percent year-over-year.

QCOR closed Tuesday's regular trading session at $51.91, up $0.89 or 1.74 percent on a volume of 2.93 million shares. In after-hours, the stock further gained $7.64 or 14.72 percent to $59.55.