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Questcor Says Results May Benefit From Medicaid Rebate Amount Change For Acthar

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Questcor Pharmaceuticals Inc. (QCOR, QSC) said Tuesday in a regulatory filing that its financial results could be boosted by a change in the Medicaid rebate amount for its primary product H.P. Acthar Gel or repository corticotropin injection. The shares are surging close to 9 percent in pre-market activity.

Acthar Gel is a naturally-derived formulation of adrenocorticotropic hormones used in several disorders having an inflammatory component.

The Anaheim, California-based company said today that it currently provides Acthar to Medicaid participants and pay mandatory rebates to state Medicaid programs on the Acthar provided to those patients. At present, the rebate amount is about 100 percent of the amount the distributor is charged for Acthar.

The government has informed the company that Acthar is eligible for a lower Medicaid rebate amount. Thus, the company is in the process of taking necessary steps to effect this change.

Questcor estimates that it will take 3 - 6 months to implement this change and the new rebate may become 23.1 percent.

''If we ultimately implement this change in the Medicaid rebate amount for Acthar, such change could have a materially positive impact on our financial results,'' the firm added.

Questcor is focused on the treatment of patients with serious, difficult-to-treat autoimmune and inflammatory disorders. The biopharmaceutical firm concentrates on neurology and nephrology, which have significant unmet medical needs.

QCOR, which closed at $43.44 on Monday, is climbing 8.7 percent in pre-market activity.

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