Questcor 3Q profit nearly doubles on sales surge

ANAHEIM, Calif.

Questcor Pharmaceuticals Inc. on Tuesday said its third-quarter profit nearly doubled thanks to a huge increase in the number of prescriptions for its multiple sclerosis treatment H.P. Acthar Gel

For the three months ended Sept. 30, the drug maker said it earned $22.9 million, or 35 cents per share, compared with $11.5 million, or 18 cents per share, in the year-ago quarter.

Revenue also nearly doubled, to $56.1 million, from $29 million last year.

Analysts, on average, expected profit of 25 cents per share, on revenue of $53.2 million.

The surprise results sent shares up sharply in aftermarket trading. Questcor shares rose $4.70, or 14.1 percent, to $38 in the late session, after closing Tuesday's regular session down 99 cents, or 2.9 percent, at $33.30.

Questcor said the number of paid prescriptions for the multiple sclerosis treatment leaped 174 percent from the prior year, to 886 from 323. Use of the treatment for other conditions, including nephrotic syndrome and infantile spasms also rose.

`We believe Acthar has the potential to benefit many more MS, NS, IS and possibly lupus patients in the future," said President and CEO Don Bailey.

The results reflected the company's moves to increase its sales force, particularly in nephrology, where it boosted sales representatives to 28 from 5. That was reflected in selling and marketing expenses, which jumped 79 percent to $13.7 million, from $7.7 million last year.