Some companies were happy to see the end of 2012. Questcor Pharmaceuticals Inc (NASDAQ:QCOR) was one of them. The company had a terrible second half of the year, due to fears about insurance coverage and some bad press. The stock lost more than half of its value after reports came out about the suspect marketing practices of the company.
An investigation into the marketing practices of the company created significant doubts in investor’s minds. Despite the negative press and investigation, the company carried on its impressive performance and reported impressive earnings.
Questcor Pharmaceuticals Inc (NASDAQ:QCOR) has beaten analyst expectations on more than ten occasions now, which shows that there are no signs of slowing revenue growth. Of course, there will always be concerns about sustainability of the company with only one product in the pipeline. However, if the product is good enough, having just one product may not be a bad thing. In case of Questcor, the product, Acthar, is extremely effective and beneficial. Once again, the company exceeded analyst expectations and reported extremely impressive earnings figures.
Earnings: Impressive as always.
There are a few companies that can match earnings growth shown by Questcor Pharmaceuticals Inc (NASDAQ:QCOR). Fourth-quarter adjusted earnings per share were $1.09, 132% higher than the earnings for the same quarter last year. This is astonishing growth in earnings for a company with only one product in the pipeline, right? As I said, Acthar is an extremely effective product, and there is still a lot of room for the company to grow revenue.
Questcor beat analyst estimates by $0.16; the consensus earnings estimate for the quarter was $0.93 per share. Revenue growth was impressive, and it was the main reason for growth in earnings. Questcor’s revenue grew 113% for the quarter to $160.5 million.
Massive growth in revenue was due to the solid performance of Acthar Gel in nephrotic syndrome, infantile spasms, and multiple sclerosis (MS). Questcor has been trying to increase revenue from nephrotic syndrome, and recent results indicate that the firm is able to achieve considerable success. Prescriptions in nephrotic syndrome have increased substantially over the past year.
A total of 6,330 vials of Acthar were shipped during the fourth quarter, 88% more than the same quarter last year. For the full year, the company reported net income of $197.7 million, or $3.14 per share. Earnings almost tripled for the company, from $1.21 per share reported at the end of 2011.
Questcor Pharmaceuticals Inc (NASDAQ:QCOR) is also trying to augment its pipeline, and the company spent $12.1 million in research and development, 111.6% more than the previous year. Although operating expenses have also skyrocketed, revenue has grown at a higher rate than the expenses.