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

9/4/2012 9:02 AM ET

Questcor Pharmaceuticals Inc. (QCOR: Quote,QSC: Quote) 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.

To receive FREE breaking news email alerts for Questcor Pharmaceutical Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

<<Previous 87 Articles

Editors Pick

Fed Concerns Contribute To Lackluster Session On Wall Street - U.S. Commentary

There was a mixed performance on Wall Street on Friday. Shares suffered an early decline, as investors continued to express worries about the Federal Reserve. A recovery through the rest of the day allowed the Dow to edge into positive territory by the close. The Nasdaq and S&P 500 posted fractional losses.

Stocks Come Under Pressure Amid Worries About The Fed - U.S. Commentary

Stocks have shown a notable move to the downside in early trading on Friday amid lingering concerns about the outlook for the Federal Reserve's asset purchase program. The major averages have slid firmly into negative territory, adding to the modest losses posted in the previous session. The major averages are currently posting notable losses, near their lows for the young session.

U.S. Durable Goods Orders Rise 3.3% In April, More Than Expected

After reporting a sharp drop in new orders for manufactured durable goods in the previous month, the Commerce Department released a report on Friday showing that durable goods orders rebounded by more than anticipated in the month of April. The report said durable goods orders surged up by 3.3 percent in April after tumbling by a revised 5.9 percent in March.