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Questcor Ships 1,060 Vials of Acthar
Monday December 3, 11:52 am ET
Questcor Shipped 1,060 Vials of Acthar Drug in October, November
WASHINGTON (AP) -- Questcor Pharmaceuticals Inc. shipped 1,060 vials of multiple sclerosis drug H.P. Acthar Gel in October and November for distribution to hospitals and specialty pharmacies in the U.S, the company disclosed Monday.
Questcor said in a Securities and Exchange Commission filing that it has experienced a consistent level of ordering and insurance reimbursement for Acthar since the inception of a new strategy and business model. The goal of this new strategy is to make manufacturing and distribution of Acthar economically viable on a stand-alone basis.
Under the new strategy, the Union City, Calif.-based specialty pharmaceutical company said it will initiate a new pricing model, create an expanded safety net for patients using Acthar and provide a group of medical science liaisons to work with health care providers who are administering Acthar.
Questcor said that future Acthar orders may be impacted by inventory practices at specialty and hospital pharmacies, greater use of the safety net established for Acthar patients, the pattern of usage by the healthcare community and reimbursement policies of insurance companies.
Questcor believes that about 30 percent of the estimated 425 to 475 monthly Acthar vial demand is used by patients covered by Medicaid and other government related programs, the filing said.
For periods after Sept. 30, the company believes the amount of Medicaid rebates and government chargebacks that reduce its net sales may result in minimal, if any, net revenue from Acthar used by Medicaid patients and certain government entities.
As of Friday, Questcor's cash, cash equivalents and short-term investments totaled around $20 million and its accounts receivable balance was roughly $24 million, according to the filing.
Shares of Questcor rose 43 cents, or 7.4 percent, to $6.23 in late-morning trading Monday.
