Questcor Increases Quarterly Cash Dividend 20 Percent
Dividend Increased to $1.20 per Share on an Annual Basis
Second Dividend Increase in 2013 Reflects Growing Cash Flow
ANAHEIM, Calif., Oct. 10, 2013
ANAHEIM, Calif., Oct. 10, 2013 /PRNewswire/ -- Questcor Pharmaceuticals, Inc.
(Nasdaq: QCOR) today announced that its Board of Directors has declared a
quarterly cash dividend of $0.30 per share ($1.20 per share on an annual
basis), reflecting a 5 cent or 20 percent increase over the previous quarter's
dividend, and a 50 percent increase year over year. The dividend will be paid
on or about October 30, 2013 to shareholders of record at the close of
business on October 22, 2013.
"Our second dividend increase this year reflects our strong financial
performance to date, driven by increasing usage of Acthar among physicians to
treat patients with serious, difficult to treat medical conditions," said Don
M. Bailey, President and CEO of Questcor. "Our business is generating a
growing amount of cash flow, as evidenced by Questcor's $278 million in cash
and investments at October 4, 2013.Our cash position includes $75 million in
restricted cash, unchanged from the second quarter 2013. We remain committed
to using our strong cash flow to invest in our business, including significant
investments in R&D, while returning cash to shareholders. To date we have
maintained a payout ratio—dividends paid per share divided by earnings per
share—of approximately 20%."
Questcor Pharmaceuticals, Inc. is a biopharmaceutical company focused on the
treatment of patients with serious, difficult-to-treat autoimmune and
inflammatory disorders. Questcor also provides specialty contract
manufacturing services to the global pharmaceutical industry through its
wholly-owned subsidiary BioVectra Inc. 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 the following approved indications: the treatment of proteinuria in the
nephrotic syndrome of the idiopathic type, or NS, the treatment of acute
exacerbations of multiple sclerosis, or MS, in adults, the treatment of
infantile spasms, or IS, in infants and children under two years of age, and
the treatment of certain rheumatology related conditions. 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 has announced
its intent to initiate a pilot commercialization effort for Acthar for the
treatment of respiratory manifestations of symptomatic sarcoidosis.The FDA
approved package insert for Acthar includes "symptomatic sarcoidosis" under
the heading "Respiratory Diseases". 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 has
agreed to acquire certain international rights for Synacthen® (tetracosactide)
and Synacthen Depot®, and has licensed the right to develop and seek FDA
approval for these products in the United States.For more information about
Questcor, please visit www.questcor.com.
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. In some cases, you can
identify forward-looking statements by terminology such as "believes,"
"continue," "could," "ensuring," "estimates," "expects," "growth," "may,"
"momentum," "plans," "potential," "remain," "should," "start," "substantial,"
"sustainable" or "will" or the negative of such terms and other comparable
terminology. 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:
oOur reliance on Acthar for substantially all of our net sales and profits;
oOur ability to continue to generate revenue and free cash flow from sales
of Acthar to treat on-label indications associated with NS, MS, IS or
rheumatology-related conditions, and our ability to develop other
therapeutic uses for Acthar;
oOur ability to effectively manage our growth, including the expansion of
our sales forces, planned international expansion, recent acquisitions,
and our reliance on key personnel;
oOur ability and willingness to continue to pay our quarterly dividend or
make future increases in our quarterly dividend; and
oOther risks discussed in Questcor's annual report on Form 10-K for the
year ended December 31, 2012 as filed with the Securities and Exchange
Commission, or SEC, on February 27, 2013, and other documents filed with
The risk factors and other information contained in these documents should be
considered in evaluating Questcor's prospects and future financial
Questcor undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements, which may be made to reflect
events or circumstances after the date of this release.
SOURCE Questcor Pharmaceuticals, Inc.
Contact: EVC Group, Gregory Gin/Patty Eisenhaur, 646-445-4801/951-316-0577;
Janine McCargo, 646-688-0425
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