Questcor Pharmaceuticals Expands Repurchase Program
ANAHEIM, Calif., May 16, 2012 /PRNewswire via COMTEX/ -- Questcor
Pharmaceuticals, Inc. (QCOR) announced today that its Board of Directors has
increased the Company's common share repurchase program authorization by an
additional 5 million shares.
Since the beginning of 2008, the Company has returned $236 million to
shareholders through the repurchase of approximately 19.2 million common and
preferred shares, representing approximately 27% of its shares as of the
commencement of the program. Including the additional 5 million share
authorization and its repurchase activity through May 15, 2012, Questcor now has
5.4 million remaining shares authorized under its repurchase program,
representing approximately 9% of the Company's currently outstanding common
stock. As of May 15, 2012, Questcor had 60.2 million common shares outstanding.
On a diluted basis utilizing the treasury method, the Company would have
approximately 63.2 million common shares outstanding as of May 15, 2012.
In 2012, the Company has made the following repurchases:
798,285 shares during March 2012
3,025,300 shares from late April through May 15, 2012. This includes 1,012,700
shares since the Company's Form 8-K filing May 8, 2012.
Questcor executives will be meeting with investors at an investor conference on
May 16, 2012. Information regarding the share repurchase program is included in
the presentation that will be used at the conference. The presentation is
included as an exhibit to a Form 8-K that the Company is filing this morning with
the Securities and Exchange Commission.
"The Company's previous share repurchases have been significantly accretive to
earnings per share," said Michael H. Mulroy, Chief Financial Officer of Questcor.
"The most recent repurchases, like those in the past, were driven by our belief
that there is a substantial difference between the intrinsic value and the market
value of our common stock. This belief is based on several factors, including the
following:
Net sales and earnings per share for the quarter ended March 31, 2012 increased
by more than 60% over the quarter ended September 30, 2011 - the quarter prior to
the initial expansion of our nephrotic syndrome sales force from 5 to 28 Acthar
specialists;
We have gained greater confidence in the long-term potential for Acthar in the
treatment of patients suffering from nephrotic syndrome;
We are in the process of further expanding our nephrology and neurology sales
forces, and similar expansions in the past have resulted in significant growth in
net sales; and
We are preparing to launch a pilot effort in rheumatology, a therapeutic area in
which Acthar has a number of approved indications with sizeable markets with
patients with high unmet needs.
From the beginning of 2008 through May 15, 2012, we have returned approximately
78% of our operating cash flow to shareholders by repurchasing stock at an
average price of $12.26 per share. During that period, we have also been able to
fund other important initiatives, including the significant expansion of our
research and development activities. We have also continued our patient-support
programs, providing $150 million in free Acthar through March 31, 2012. "
Stock repurchases under this program may be made through open market or privately
negotiated transactions in accordance with all applicable laws, rules and
regulations. The transactions may be made from time to time and in such amounts
as management deems appropriate. The number of shares to be repurchased and the
timing of repurchases will be based on several factors, including the price of
the Company's common stock, general business and market conditions, and other
investment opportunities. The stock repurchase program does not have an
expiration date and may be limited, suspended or terminated at any time by the
Board of Directors without prior notice. The authorization to repurchase shares
is not a guarantee that the Company will repurchase additional shares.
About Questcor Questcor Pharmaceuticals, Inc. is a biopharmaceutical company
whose primary product helps patients with serious, difficult-to-treat medical
conditions. Questcor's primary product is H.P. Acthar? Gel (repository
corticotropin injection), an injectable drug that is approved by the FDA for the
treatment of 19 indications. Of these 19 indications, Questcor currently
generates substantially all of its net sales from three indications: the
treatment of proteinuria in idiopathic types of nephrotic syndrome, the treatment
of acute exacerbations of multiple sclerosis in adults, and the treatment of
infantile spasms in children under two years of age. With respect to nephrotic
syndrome, the FDA has approved Acthar to "induce a diuresis or a remission of
proteinuria in the nephrotic syndrome without uremia of the idiopathic type or
that due to lupus erythematosus." Questcor is also currently preparing to launch
a pilot effort in rheumatology, as Acthar is approved for several
rheumatology-related conditions including Lupus, Dermatomyositis, Polymyositis
and Rheumatoid Arthritis. Questcor is also exploring the possibility of
developing markets for other on-label indications and the possibility of pursuing
FDA approval of additional indications not currently on the Acthar label where
there is high unmet medical need. For more information about Questcor, please
visit questcor.com.
Note: Except for the historical information contained herein, this press release
contains forward-looking statements that have been made pursuant to the Private
Securities Litigation Reform Act of 1995. These statements relate to future
events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as "believes," "continue,"
"could," "estimates," "expects," "growth," "may," "plans," "potential," "should,"
"substantial" or "will" or the negative of such terms and other comparable
terminology. These statements are only predictions. Actual events or results may
differ materially. Factors that could cause or contribute to such differences
include, but are not limited to, the following:
Our reliance on Acthar for substantially all of our net sales and profits;
Reductions in vials used per prescription resulting from changes in treatment
regimens by physicians or patient compliance with physician recommendations;
Our ability to continue to generate revenue from sales of Acthar to treat
on-label indications associated with NS, and our ability to develop other
therapeutic uses for Acthar;
Our ability to receive high reimbursement levels from third party payers;
An increase in the proportion of our Acthar unit sales comprised of
Medicaid-eligible patients and government entities;
Our ability to effectively manage our growth, including the expansion of our NS
selling effort, and our reliance on key personnel;
Volatility in Questcor's monthly and quarterly Acthar shipments, estimated
channel inventory, and end-user demand, as well as volatility in our stock price;
and
Other risks discussed in Questcor's annual report on Form 10-K for the year ended
December 31, 2011 as filed with the Securities and Exchange Commission, or SEC,
on February 22, 2012, and other documents filed with the SEC.
The risk factors and other information contained in these documents should be
considered in evaluating Questcor's prospects and future financial performance.
Questcor undertakes no obligation to publicly release the result of any revisions
to these forward-looking statements, which may be made to reflect events or
circumstances after the date of this release.
For more information, please visit questcor.com or
acthar.com. |
