Leerink Trims Valuation Range on Questcor (QCOR); Still Sees Broader Acthar Risk
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Price: $93.60 --0%
Rating Summary:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Questcor Pharmaceutical (Nasdaq: QCOR) shares are higher amid a solid third-quarter report issued Tuesday night. However, one firm still sees some risk ahead.
Leerink Swann said it is keeping a Market Perform rating, but has adjusted its valuation range from $34 to $36 per share down to $24 to $25 per share. Leerink commented, "we believe the reasons for Aetna’s (NYSE: AET) 3Q12 red flagging of Acthar may be a prelude to broader insurance reimbursement risk. This decision was driven by: 1) publicity around QCOR; 2) 2012 price increases; 3) lack of clinical data supporting use in approved indications, and; 4) lack of support by National Medical Societies (MS, ANA)."
More on Acthar: "Based on the reasons for Aetna (OP) red flagging Acthar, we believe there is longer term risk that other large insurers may follow suit. Our due diligence suggests Anthem and Cigna (NYSE: CI) (OP) both currently continue to cover Acthar. We discovered that Anthem reviewed Acthar on 5/10/12 with the policy effective on 7/10/12. Cigna’s policy review is effective as of 7/15/12. The next review date will be 7/15/13. We believe there could be increased risk associated with future reviews."
Amid Leerink's concerns, Questcor is up about 1.2 percent Wednesday morning.
Leerink Swann said it is keeping a Market Perform rating, but has adjusted its valuation range from $34 to $36 per share down to $24 to $25 per share. Leerink commented, "we believe the reasons for Aetna’s (NYSE: AET) 3Q12 red flagging of Acthar may be a prelude to broader insurance reimbursement risk. This decision was driven by: 1) publicity around QCOR; 2) 2012 price increases; 3) lack of clinical data supporting use in approved indications, and; 4) lack of support by National Medical Societies (MS, ANA)."
More on Acthar: "Based on the reasons for Aetna (OP) red flagging Acthar, we believe there is longer term risk that other large insurers may follow suit. Our due diligence suggests Anthem and Cigna (NYSE: CI) (OP) both currently continue to cover Acthar. We discovered that Anthem reviewed Acthar on 5/10/12 with the policy effective on 7/10/12. Cigna’s policy review is effective as of 7/15/12. The next review date will be 7/15/13. We believe there could be increased risk associated with future reviews."
Amid Leerink's concerns, Questcor is up about 1.2 percent Wednesday morning.
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