Leerink Swann Would Buy Questcor (QCOR) on Weakness, Drug Remains Available to Patients
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Price: $93.60 --0%
Rating Summary:
5 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
5 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Leerink Swann reiterated their Outperform rating and $55-$58 target on Questcor Pharmaceuticals (NASDAQ: QCOR) following today's conference call on Acthar reimbursement.
Leerink's analyst noted that they spoke to an Aetna representative who pulled up the formulary and said Acthar "can currently be reimbursed across indications as a second tier drug." They expects this to be primarily in the relapsed or refractory setting. Sales through Aetna represent 5% of Acthar sales, they also note. Citing conversations with the Aetna rep, the firm said, "physicians need consent to overcome Aetna restrictions in order to use the drug but there is no constraint on particular indications."
Anthem Blue Cross inidicated that Acthar is reimbursed as a Tier 3 drug. "Again, a physician needs to specifically request to use the drug in order to overcome restrictions but there is no constraint on particular indications."
On the call, management stressed that case-by-case patient reviews and potential appeals are more important than general insurer policies.
"The important point to us is that the drug remains available to patients, is reimbursed and vial trends continue to demonstrate meaningful growth," the analyst said. "We would be buying the stock on weakness."
For an analyst ratings summary and ratings history on Questcor Pharmaceuticals click here. For more ratings news on Questcor Pharmaceuticals click here.
Shares of Questcor Pharmaceuticals are down 16.8 percent to $30.77.
Leerink's analyst noted that they spoke to an Aetna representative who pulled up the formulary and said Acthar "can currently be reimbursed across indications as a second tier drug." They expects this to be primarily in the relapsed or refractory setting. Sales through Aetna represent 5% of Acthar sales, they also note. Citing conversations with the Aetna rep, the firm said, "physicians need consent to overcome Aetna restrictions in order to use the drug but there is no constraint on particular indications."
Anthem Blue Cross inidicated that Acthar is reimbursed as a Tier 3 drug. "Again, a physician needs to specifically request to use the drug in order to overcome restrictions but there is no constraint on particular indications."
On the call, management stressed that case-by-case patient reviews and potential appeals are more important than general insurer policies.
"The important point to us is that the drug remains available to patients, is reimbursed and vial trends continue to demonstrate meaningful growth," the analyst said. "We would be buying the stock on weakness."
For an analyst ratings summary and ratings history on Questcor Pharmaceuticals click here. For more ratings news on Questcor Pharmaceuticals click here.
Shares of Questcor Pharmaceuticals are down 16.8 percent to $30.77.
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