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Questcor drops after potential competitor receives orphan status

Questcor (QCOR) is dropping after a drug which could compete with the company’s Acthar gel was granted orphan status by the FDA. The FDA disclosed late yesterday that it had granted orphan status to Cerium Phamacutical's experimental tetracosactide hexaacetate drug, a treatment for infantile spasms. The FDA grants orphan drug status to drugs that show potential for treating rare diseases and conditions. As a result of the FDA's decision, Cerium would be able to sell the drug without any competition in the U.S. for seven years if the treatment is approved by the agency. Questcor's Acthar gel is also a treatment for infantile spasms, but the product is also used as a treatment for multiple sclerosis, nephrotic syndrome and several other diseases and disorders. In mid-morning trading, Questcor sank $2.45, or 9.63%, to $22.