Navigation Links
Questcor Discusses ISS Proxy Recommendations; Provides Business Update

ANAHEIM, Calif., May 11, 2011 /PRNewswire/ -- Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) today reported that it removed the option re-pricing provision from its Equity Incentive Award Plan.

ISS Proxy Advisory Services ("ISS") has recommended to its clients that they vote at the Company's May 19, 2011 Annual Meeting of Shareholders "Against" the Company's proposal to add shares to its 2006 Equity Incentive Award Plan.  ISS indicated that its "Against" recommendation is based in part on the 2006 Plan allowing for the re-pricing of stock options without shareholder approval.  The Company has amended the 2006 Plan to remove this provision.  ISS has re-published its report reflecting this provision deletion.

ISS also indicated that the number of shares that the Company is requesting causes ISS's self-imposed threshold of 15% (of outstanding shares) to be exceeded. By using the current number of outstanding Questcor shares (62 million), the ISS analysis penalizes Questcor for its shareholder-friendly share repurchase program. The Company has repurchased 15 million shares since early 2008. Had ISS used 77 million shares, the calculated dilution would be much lower.

Additionally, approximately 3.7 million of the Company's outstanding stock options are both vested and deep in-the-money due to the significant increase in its stock price since 2007.  In fact, ISS highlights in its report that Questcor shareholders have enjoyed a 70% annualized return over the past five years compared to less than 1% for the Russell 3000.

The Company views the ISS calculation of the dilutive impact of the 2006 Plan as too simplistic, given its lack of consideration for the factors noted above. Adjusting for the Company's repurchase of approximately 15 million common and preferred shares and for the vested, in-the-money options, the Company believes that the model utilized by ISS would calculate dilution of approximately 12%.

"We appreciate ISS pointing out the legacy re-pricing provision in our 2006 Plan as we never considered utilizing the provision and believe the deletion of the provision is in the best interest of the Company's shareholders.  Accordingly, we have eliminated the option re-pricing provision which the ISS recommendation refers to," said Don M. Bailey, President and CEO of Questcor.  "However, we note that the ISS concern regarding the quantity of options that we are requesting fails to give us appropriate credit for the shares repurchased or take into account the fact that many of our outstanding stock options are vested, deep in-the-money stock options.  This concern appears to be the product of an over-simplistic model, as ISS has recommended "For" votes for each of the other proposals in the proxy statement, including the advisory "say-on-pay" proposal."

Mr. Bailey added, "If the "Against" votes exceed the "For" votes by the time voting is complete, the Company would likely view this result as an ISS-driven, unintended consequence of the Company's share repurchase program.  This would be especially ironic given both how popular the share repurchase program has been among shareholders and the significantly above-market returns shareholders have generated from the extraordinary efforts of our employees."

"We encourage our shareholders to consider this matter very carefully and form their own opinion regarding the Company's 2006 Equity Incentive Award Plan.  We view the Plan as a critical element of our overall compensation structure and do not believe that our ability to incentivize our employees should be negatively impacted by our share repurchase program," Mr. Bailey continued.

Business Update

"Turning to the business, so far in the second quarter, the daily rate for new paid Acthar prescriptions for multiple sclerosis (MS) relapses has increased significantly from the first quarter.  In fact, the second quarter's daily rate of new, paid MS prescriptions is slightly higher than the very strong record daily rate seen in the month of March. We are also seeing similar trends in nephrotic syndrome (NS) prescriptions so far in the second quarter.  We are continuing to plan the next expansion of our sales effort, with a focus on NS this time. We plan to accomplish this expansion without any decrease in the effort or momentum with MS," concluded Mr. Bailey.

Conference Call Details

The Company will host a conference call tomorrow May 12, 2011 at 1:00 p.m. ET/ 10:00 a.m. PT, to discuss this situation and provide an update on the business.  Don Bailey, President and Chief Executive Officer; and other members of the management team will host the call.

To participate in the live call by telephone, please dial 888-549-7880 for domestic participants and 480-629-9678 for international participants.  Participants are asked to call the above numbers 5-10 minutes prior to the starting time.  The call will also be webcast live at  An audio replay of the call will be available for 7 days following the call.  This replay can be accessed by dialing 800-406-7325 for domestic callers and 303-590-3030 for international callers, both using passcode 4441143#.  An archived webcast will also be available at

About Questcor

Questcor Pharmaceuticals, Inc. is a biopharmaceutical company whose primary product helps patients with serious, difficult-to-treat medical conditions.  Questcor's primary product is H.P. Acthar® Gel (repository corticotropin injection), an injectable drug that is approved by the FDA for the treatment of 19 indications.  Of these 19 indications, Questcor currently generates substantially all of its net sales from three indications: the treatment of acute exacerbations of multiple sclerosis in adults, the treatment of nephrotic syndrome, and the treatment of infantile spasms in children under two years of age. With respect to nephrotic syndrome, the FDA has approved Acthar to "induce a diuresis or a remission of proteinuria in the nephrotic syndrome without uremia of the idiopathic type or that due to lupus erythematosus."  Questcor is also exploring the possibility of developing markets for other on-label indications and the possibility of pursuing FDA approval of additional indications not currently on the Acthar label where there is high unmet medical need.  Questcor also markets Doral® (quazepam), which is indicated for the treatment of insomnia characterized by difficulty in falling asleep, frequent nocturnal awakenings, and/or early morning awakenings. For more information, please visit

Note: Except for the historical information contained herein, this press release contains forward-looking statements that have been made pursuant to the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. These statements are only predictions. Actual events or results may differ materially. Factors that could cause or contribute to such differences include, but are not limited to, the following:

  • Our reliance on Acthar for substantially all of our net sales and profits;
  • Our ability to generate revenue from sales of Acthar to treat on-label indications associated with NS, and our ability to develop other therapeutic uses for Acthar;
  • Our ability to effectively manage our growth and our reliance on key personnel;
  • Volatility in Questcor's monthly and quarterly Acthar shipments and end-user demand, as well as volatility in our stock price; and
  • Other risks discussed in Questcor's annual report on Form 10-K for the year ended December 31, 2010, and other documents filed with the Securities and Exchange Commission.

For more information, please visit or  

SOURCE Questcor Pharmaceuticals, Inc.
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Questcor Reports Solid Fourth Quarter Results
2. Questcor to Discuss Results From FDA Panel Meeting
3. Trading Halted Today in Questcor Pharmaceuticals Common Stock
4. Questcor to Present at the Jefferies 2010 Global Life Sciences Conference
5. Questcor Receives Notification of PDUFA Date Extension to September 11, 2010
6. Mitchell J. Blutt, M.D. Appointed to Questcor Board of Directors
7. Questcor to Present at UBS Global Life Sciences Conference
8. Questcor and Child Neurology Foundation Support the 2nd Annual Infantile Spasms (IS) Awareness Week
9. Questcor Teams With Child Neurology Foundation (CNF) to Fund Infantile Spasms Scientific Research
10. Questcor to Present at the 21st Annual Oppenheimer Healthcare Conference
11. Questcor Reports Third Quarter 2010 Results
Post Your Comments:
(Date:10/9/2015)... , October 9, 2015 ... die sich einer Kolonoskopie im Rahmen eines ... unterziehen. Die NOCT-Studie bewertete auch die Compliance, ... --> ® ) an erwachsenen Patienten ... eines Screenings, einer beobachtenden oder einer diagnostischen ...
(Date:10/9/2015)... , October 9, 2015 ... (OTCQB: CNBX) has announced its execution of an Intellectual Property ... Liabilities Agreement with Cannabics, Inc. a Delaware Corporation, related party, ... --> --> These ... of the Company, whereby the Research and Development components ...
(Date:10/9/2015)... India , October 9, 2015 ... --> The report ... market and overall status of the ... of guidance and direction for companies ... . ...
Breaking Medicine Technology:
... PRO-DEX, INC. (Nasdaq: PDEX ) invites investors and ... fiscal 2012 first quarter financial results. (Logo:   ... be broadcast live over the internet on Wednesday, November 9, ... and may be accessed by visiting the Company,s website at ...
... VIEW, Calif., Nov. 3, 2011 VIVUS, Inc. (NASDAQ: ... were published in Obesity, the peer-reviewed journal of The ... the investigational drug Qnexa in 1,267 severely obese (BMI >/= 35 ... addition to average weight loss of 14.4% of initial body weight ...
Cached Medicine Technology:
(Date:10/10/2015)... ... ... Isabel Healthcare will participate in the Cerner Health Conference October 11-14, 2015 ... Institute of Medicine’s latest report “Improving Diagnosis in Healthcare”, Isabel Healthcare will be featuring ... and consumers to potentially reduce the chance of error. The report suggests that most ...
(Date:10/9/2015)... ... October 09, 2015 , ... The American Osteopathic Foundation ... Graduate Medical Education J. Michael Finley, DO, as the recipient of the 2015 ... his impact on graduate medical education opportunities for osteopathic residents, and his dedication ...
(Date:10/9/2015)... ... ... A new health tool that helps identify if a sore throat is ... – just in time for the cold and flu season, which the Center for ... the U.S., the real start of cold/flu season is the start of the school ...
(Date:10/9/2015)... ... October 09, 2015 , ... Dentist in Huntington Beach ... system that uses clear, plastic aligners. This alternative to braces has become wildly ... allow patients to complete treatment in privacy. Additionally, Invisalign aligners are removable, so ...
(Date:10/9/2015)... (PRWEB) , ... October 09, 2015 , ... The Asthma ... the US Centers for Disease Control and Prevention (CDC) to improve the knowledge and ... that AAFA has been awarded a project by the CDC and allows AAFA to ...
Breaking Medicine News(10 mins):
... better diagnosis and drug treatments, study says , , WEDNESDAY, ... most common form of mental retardation -- called nonsyndromic ... that may contribute to the condition, new research finds. ... occurs during development of the child and is not ...
... virus strikes healthy kids, and it affects more youngsters than ... It,s called respiratory syncytial virus (RSV), a childhood infection that,s ... and one of every 38 emergency room trips, a new ... for inpatient hospital stays for one out of every 334 ...
... is a statement by Matthew L. Myers, President, ... and President Obama today are delivering a historic ... increasing federal tobacco taxes, including a 62-cent increase ... Children,s Health Insurance Program (SCHIP). This legislation ...
... Feb. 4 , WHAT: , ... event, with members of the cast,of Broadway,s Tony Award-winning best ... February 6, 2009 , WHO: , ... compelling stories of women making,heart-healthy choices and inspiring others with ...
... seeks new ways to prevent and treat chronic diseases such ... be conducted on the benefits of certain foods in reducing ... often cited as being high in antioxidants, which have the ... within the body, reducing the risk of cancer and other ...
... Feb. 4 Erik Olson, director of chemical and food ... the following statement today in response to the introduction of ... , , "In the midst of ... Safety Modernization Act (FSMA) could not be more timely. The ...
Cached Medicine News:
2.5V Halogen source, fiber-optic delivery, 2.5X magnification....
Pocket-sized instrument with 2.5X magnification....
Pocket-sized instrument. All Keeler otoscopes have bright halogen illumination for clear and accurate visualization of aural canal. Lithium-ion batteries with quick recharge capability. Ring rheos...
Otoscope with 4X magnification lens, swivellable to both sides, with removable cover glass to insert external instruments. Sealed system allowing for pneumatic otoscopy. 2.5V halogen source....
Medicine Products: