Questcor Pharmaceuticals Inc (NASDAQ:QCOR) has faced the affects of bad press more than once in the past. The stock lost more than half of its value last year, after reports about its questionable marketing practices spurred a federal investigation. While that drop was extremely painful for long-term investors, it gave speculators and short-term traders an opportunity to make substantial profits, and let long-term investors add to their positions. The stock has recovered much of its losses since then — but it still has a long way to go to reach its previous highs.
Impressive Revenue Growth
Few companies can match Questcor Pharmaceuticals Inc (NASDAQ:QCOR)’s revenue growth. The company reported 133.3% year-over-year rise in its revenue. Net income also increased by a tremendous 148% year over year.
An increase in prescriptions for H.P. Acthar gel helped boost sales volume, as the FDA approved Acthar to treat a more diverse range of illnesses. Acthar can be prescribed for a number of conditions, including kidney ailments; a rare seizure disorder that affects infants; and multiple sclerosis, which attacks the brain and spinal cord. Together, these ailments help provide nearly three-fourths of Questcor Pharmaceuticals Inc (NASDAQ:QCOR)’s business.
Furthermore, the company is trying to get Acthar approved for three more conditions, which would expand the drug’s horizon. Acthar’s incredibly strong label should allow the company to keep growing revenue at a healthy clip for years to come.
Dividends and Growth Prospects
Questcor Pharmaceuticals Inc (NASDAQ:QCOR) distributed dividends of $0.25 per share, yielding 3.15% and repurchased shares of $18.6 million. The company has been returning capital to its shareholders, and it looks like Questcor Pharmaceuticals Inc (NASDAQ:QCOR) is now becoming a dividend stock. Declaration of dividend also indicates that the company is confident about the future cash flows and revenue, which should allay the fears about the future of the company.
The management has doubled the expenditure on research and development since innovation is the key to excel given the nature of the industry. The company is currently running clinical trials on three conditions to expand usage of its core drug, H.P. Acthar. Questcor has also planned to increase the size of its sales force to create awareness about the usage of the drug.
Acthar’s status as an “orphan drug” — a treatment for rare but serious medical conditions — allows the company to charge heavy prices. If Questcor Pharmaceuticals Inc (NASDAQ:QCOR) can keep expanding the drug’s label at regular intervals, its current sales growth could continue well into the future.