Questcor Pharmaceuticals Inc. (QCOR) provided an update regarding its Medicaid rebate position with respect to the company's primary product, H.P. Acthar Gel. The company said it currently provides Acthar to Medicaid participants and pay mandatory rebates to state Medicaid programs on the Acthar provided to those patients. Currently, the rebate amount is nearly 100% of the amount we charge our distributor for Acthar.
The government has informed the company that Acthar is eligible for a lower Medicaid rebate amount. As a result, the company is in the process of taking the necessary steps to effect this change, also estimating that it would take nearly 3 - 6 months to implement this change and that the new rebate may become 23.1%. If it ultimately implements this change in the Medicaid rebate amount for Acthar, such change could have a materially positive impact on our financial results, the company added.
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