Biotechnology company Questcor Pharmaceuticals, Inc. (QCOR) reported Tuesday a profit for the first quarter that edged up from last year, reflecting strong double-digit sales growth amid contribution from BioVectra, Inc. acquisition.
However, both adjusted earnings per share and quarterly revenues missed analysts' expectations. The company noted that financial results include BioVectra since January 18, 2013.
"Our first quarter results were below our expectations. However, vial shipment activity and prescription levels in MS and rheumatology in late March and throughout April appear to indicate that positive sales momentum has returned," President and CEO Don Bailey said in a statement.
The company also added that its newest initiative related to the promotion of its blockbuster drug H.P. Acthar Gel for dematomyositis and polymyositis was off to a strong start.
The Anaheimm, California-based company reported net income of $39.06 million or $0.65 per share for the first quarter, higher than $38.54 million or $0.58 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter totaled $45.83 million or $0.76 per share, compared to $40.61 million or $0.61 per share in the year-ago quarter.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.96 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 41 percent to $135.13 million from $95.97 million in the same quarter last year, but missed nine Wall Street analysts' consensus estimate of $157.16 million. BioVectra contributed $8.4 million to total sales.
Net sales growth was primarily driven by the expanded usage of Acthar by nephrologists in the treatment of nephrotic syndrome (NS) and by rheumatologists in the treatment of dermatomyositis, polymyositis, systemic lupus erythematosus, and rheumatoid arthritis.
The continued prescribing of Acthar by neurologists in the treatment of multiple sclerosis (MS) exacerbations and infantile spasms (IS) also aided sales.
Questcor shipped 4,830 vials of Acthar during the quarter, up from 4,111 vials last year. The company added that vial shipments are subject to significant variation due to the size and timing of individual orders received from its distributor.
Meanwhile, the company noted that it shipped 2,550 vials of Acthar to its distributor in April 2013, which is a record number of vials shipped in a single month.
Total new paid prescriptions for Acthar for the quarter increased about 16 percent to about 1,725 to 1,750 from last year.
"In the first quarter, we made several operational changes aimed at ensuring and improving the delivery of Acthar for patients who rely on this important drug," Bailey added.
Total operating expenses surged to $60.59 million from last year, with general and administrative as well as research and development expenses doubling from last year.
"While the second quarter is only about one-third complete, NS continues to grow, MS is on track to recover from first quarter softness, and rheumatology may well be up sharply from the first quarter," Chief Operating Officer Steve Cartt stated.
QCOR closed Tuesday's regular trading session at $30.74, up $1.02 or 3.43% on a volume of 2.56 million shares. However, the stock lost $1.12 or 3.64% in after-hours trading.
For comments and feedback: editorial@rttnews.com