Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) today reported financial results for the fourth quarter and full year ended December 31, 2011.
Net sales for the fourth quarter were $75.5 million, reflecting continued physician acceptance of H.P. Acthar® Gel (Acthar) for treating serious, difficult-to-treat medical conditions. Net sales in the fourth quarter 2010 were $29.3 million.
GAAP net income for the fourth quarter of 2011 was $31.6 million or $0.48 per diluted common share. GAAP net income for the fourth quarter of 2010 was $6.4 million, or $0.10 per diluted common share. Non-GAAP net income (which excludes non-cash share-based compensation expense, depreciation and amortization expense, tax adjustments and a goodwill impairment charge) for the quarter ended December 31, 2011 was $31.6 million or $0.47 per diluted common share. Non-GAAP net income for the year ago quarter was $8.0 million, or $0.12 per diluted common share.
For the year ended December 31, 2011, net sales totaled $218.2 million, compared to $115.1 million in the prior year. GAAP net income for the year ended December 31, 2011 was $79.6 million or $1.21 per diluted share, compared to GAAP net income of $35.1 million or $0.54 per diluted share for the year ended December 31, 2010. Non-GAAP net income was $84.0 million or $1.27 per diluted share for the year ended December 31, 2011, compared to non-GAAP net income of $39.0 million or $0.60 per diluted share for the year ended December 31, 2010.
"Net sales growth in the fourth quarter was driven by the increasing numbers of physicians who are recognizing the potential for Acthar to help patients with MS and NS," said Don M. Bailey, President and CEO of Questcor. "We are particularly encouraged by the growing number of physicians who recognize the therapeutic value of Acthar in their practices, especially for those patients who have not adequately responded to other treatments. At the same time, we are continuing to build our understanding of the potential immune-modulating properties of Acthar, and are considering how best to study the broader possible therapeutic applications in other inflammatory and autoimmune diseases, many of which are already in the list of approved indications on the Acthar label."
"The planned expansion of our nephrology sales force from 28 to 58 representatives is underway and should be completed during the second quarter, ahead of our original schedule," noted Steve Cartt, Chief Operating Officer. "We are also planning to increase the number of neurology representatives after the nephrology expansion is complete. Furthermore, a possible pilot commercial effort in rheumatology is being carefully considered for the fourth quarter of this year."
"Paid prescriptions in IS were higher in the fourth quarter, reflecting a growing recognition of the important role of Acthar in treating this devastating condition. As announced yesterday, we were pleased to accept the award from the Child Neurology Foundation (CNF) for outstanding corporate responsibility and leadership, and have further increased our funding to CNF so that they can continue their important research and education efforts related to childhood neurological conditions like IS," added Mr. Cartt.
"Our scientific research and investments continue to expand. In addition to our ongoing studies in NS and MS, we are planning new efforts in Lupus, Diabetic Nephropathy and other auto-immune and inflammatory conditions with unmet medical need," commented Dr. David Young, Chief Scientific Officer. "We have also increased our investigation into better understanding how Acthar works and how its biological activity differs from that of corticosteriods such as methylprednisolone and prednisone."
The Company continues to invest in its management systems and infrastructure, including those related to scientific research, medical affairs, and compliance. Last week, Questcor announced the appointment of Scott Whitcup, M.D., Chief Scientific Officer of Allergan, Inc., to Questcor's Board of Directors. Also, the Company has recently promoted:
-Steve Cartt to Chief Operating Officer
-Dave Medeiros to Executive Vice President and Chief Technical Officer
-Eldon Mayer to Senior Vice President of Commercial Operations
-Ray Furey to Vice President, Compliance and Chief Compliance Officer
-Gary Hogge, PhD, to Vice President, Medical Affairs.
In addition, Questcor has recently hired Darlene Romine as Vice President, Sales Operations.
"These promotions and additions reflect the expanded needs of Questcor as our sales and headcount have grown and are expected to continue to increase," noted Don Bailey. "I want to congratulate all of these executives on their well-deserved promotions."
Questcor Pharmaceuticals, Inc.