" The revenue from N/S sales calls was stated at $800,000 (4 scripts) in essence from 1 rep if you listen to the conference call. They also received 3 scripts in July. The cost of 38 new hire reps are 3 million a quarter. I will do the math for you. It is 38 X $800,00 = $30,200,000 for $3,000,000 in new expenses if all reps are working on N/S physicians. A ten fold return on investment. I can see why they want to focus on the pipeline of Acthar. I expect flat to down earnings next quarter due to the ramp up of reps, yet the last quarter should show some growth. Next year may be a gang-buster. The other thing I picked up was the stock buyback was on hold because of the FDA decision on IS. I expect the buyback to begin again soon after the FDA decision in September"
Plus QCOR HAS NO DEBT AT ALL.
What else to say after that?
This company is damned well managed and know how to generate CASH and GROW.
Trying to find a better company than this one at this price is a pure loss of time.
"I know you guys have talked a lot about the Nephrotic Syndrome market, are there other markets that you are already starting to take a look at, certainly at an early level, other disease states that Acthar might be applied for?
Yes. It's something we're very interested in and we have been looking at additional markets. Of course, we've already announced we're funding a couple of preclinical studies in ALS and traumatic brain injury. We'll have to wait over time to see how those initial studies go, but given our label and a number of possible off-label uses that we might want to pursue indications for. We have a wealth of opportunities and we are stepping through those and developing a better sense of what the market potential might be.
Acthar seems to have a role at a minimum in those diseases and conditions, where prednisone or other steroids are used and where the outcome can be devastating if the patient doesn't respond to those steroids. There is quite a few diseases and conditions, where that's the case."
My comment, This is a very important decision that Don has made. It is a typical treatment (prednisone or other steroids) for many diseases and yet many patients do not respond to this treatment. Even if a drug company comes along with a cure for MS or IS, it does not change the fact that Acthar is a very potent treatment for those in desperate situations with life threatening illnesses. Expensive, yes, other options, no. I am impressed that they are also giving or helping fund patients in need who can not afford or do not have insurance to cover Acthar usage. A clever way to make insurance companies cover non insured patients through high cost of Acthar. It also keeps the government off their back, since they really do have a monopoly on the product. In reality, anyone could step in and start producing Acthar, but would they? It will be a long time coming to have the know how. I predict they will double their sales force again about the same time next year.
given the upcoming investor conferences, the solid execution, and the imminent approval for IS, I think the stock goes back toward $11+ and retest old high. Imho, QCOR is still undervalued here...and should get toward $15...perhaps by yr end, as investors begin to look at 2011 rev/eps.