Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - QUESTCOR PHARMACEUTICALS INC | d301915d8k.htm |
| EX-99.1 - PRESS RELEASE - QUESTCOR PHARMACEUTICALS INC | d301915dex991.htm |
| EX-99.2 - TRANSCRIPT OF CONFERENCE CALL - QUESTCOR PHARMACEUTICALS INC | d301915dex992.htm |
 1
1
Fourth Quarter 2011
Conference Call
Fourth Quarter 2011
Conference Call
NASDAQ:
QCOR
NASDAQ:
QCOR
Exhibit 99.3 |
 2
•
Today’s webcast, accompanying slide presentation
and archived replay is available online at
http://ir.questcor.com/events.cfm
•
Telephone replay is available by dialing:
–
U.S.: 800-406-7325
–
International: 303-590-3030
–
Replay Passcode: 4480054
•
Today’s webcast, accompanying slide presentation
and archived replay is available online at
http://ir.questcor.com/events.cfm
•
Telephone replay is available by dialing:
–
U.S.: 800-406-7325
–
International: 303-590-3030
–
Replay Passcode: 4480054
Conference Call Logistics
2 |
 3
Safe Harbor Statement
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," "estimates," "expects," "growth,"
"may," "plans," "potential," "should," "substantial" 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: Our reliance on Acthar
for substantially all of our net sales and profits; Reductions in vials used per prescription resulting from
changes in treatment regimens by physicians or patient compliance with physician
recommendations; The complex nature of our manufacturing process and the potential for
supply disruptions or other business disruptions; The lack of patent protection for
Acthar; and the possible FDA approval and market introduction of competitive products; Our ability to continue 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; Research and development risks,
including risks associated with Questcor's work in the area of NS and potential work in
the area of Lupus, and our reliance on third-parties to conduct research and development and the ability of research
and development to generate successful results; Our ability to comply with federal and state
regulations, including regulations relating to pharmaceutical sales and marketing
practices; Regulatory changes or other policy actions by governmental authorities and
other third parties in connection with U.S. health care reform or efforts to reduce federal and state government
deficits; Our ability to receive high reimbursement levels from third party payers; An increase
in the proportion of our Acthar unit sales comprised of Medicaid-eligible patients
and government entities; Our ability to estimate reserves required for Acthar used by
government entities and Medicaid-eligible patients and the impact that unforeseen invoicing of historical Medicaid
prescriptions may have upon our results; Our ability to effectively manage our growth, including
the expansion of our NS selling effort, and our reliance on key personnel; The impact to
our business caused by economic conditions; Our ability to protect our proprietary
rights; The risk of product liability lawsuits; Unforeseen business interruptions and security breaches; 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, 2011 as filed with the Securities and Exchange
Commission, or SEC, on February 22, 2012, and other documents filed with the SEC.
The risk factors and other information contained in these documents should be considered in
evaluating Questcor's prospects and future financial performance.
|
 4
•
945 paid MS scripts
–
Up 167% YOY
•
146 paid NS scripts
•
120 paid IS scripts
•
Record financial performance
–
3,360 vials
–
$75.5M in net sales
–
$0.48 EPS (diluted)
•
945 paid MS scripts
–
Up 167% YOY
•
146 paid NS scripts
•
120 paid IS scripts
•
Record financial performance
–
3,360 vials
–
$75.5M in net sales
–
$0.48 EPS (diluted)
Strong Fourth Quarter Results |
 5
MS Scripts-Record of Consistent Growth
77
77
30
30
38
38
Paid Rxs
78
124
141
213
231
304
323
354
508
751
886
945
Q1 '09
Q2 '09
Q3 '09
Q4 '09
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Notes: Historical trend information is not necessarily indicative of future
results. Acthar is marketed for the on-label indication of MS
exacerbations
in
adults,
though
the
chart
includes
"Related
Conditions"
-
diagnoses
that
are
either
alternative
descriptions
of
the
condition
or
are closely related to the medical condition which is the focus of the chart. About
5% of the prescriptions in the tables are for related conditions. Yellow
numbers in the bars show the number of MS sales representatives making calls for the majority of the quarter.
Notes: Historical trend information is not necessarily indicative of future
results. Acthar is marketed for the on-label indication of MS
exacerbations
in
adults,
though
the
chart
includes
"Related
Conditions"
-
diagnoses
that
are
either
alternative
descriptions
of
the
condition
or
are closely related to the medical condition which is the focus of the chart. About
5% of the prescriptions in the tables are for related conditions. Yellow
numbers in the bars show the number of MS sales representatives making calls for the majority of the quarter. |
 6
Monthly MS Scripts History
Notes: Historical trend information is not necessarily indicative of future
results. Acthar is marketed for the on-label indication of MS
exacerbations
in
adults,
though
the
chart
includes
"Related
Conditions"
-
diagnoses
that
are
either
alternative
descriptions
of
the
condition
or
are closely related to the medical condition which is the focus of the chart. About
5% of the prescriptions in the tables are for related conditions. Notes:
Historical trend information is not necessarily indicative of future results. Acthar is marketed for the on-label indication of MS
exacerbations
in
adults,
though
the
chart
includes
"Related
Conditions"
-
diagnoses
that
are
either
alternative
descriptions
of
the
condition
or
are closely related to the medical condition which is the focus of the chart. About
5% of the prescriptions in the tables are for related conditions. 0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
350
15-30
reps
30-38
reps
38-77
reps |
 7
Paid Rxs
Paid Rxs
NS Scripts-Strong Q4 Growth
11
4
8
7
18
45
60
146
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
5
5
28
Notes: Historical trend information is not necessarily indicative of future results.
Chart includes "Related Conditions" - diagnoses that are either alternative
descriptions of the condition or are closely related to the medical condition which is the focus of the chart.
Yellow numbers in the bars show the number of NS sales
representatives making calls for the majority of the quarter. Q3 ‘11
included expansion and training of new sales people.
|
 8
Q4 –
2011
Q4 –
2010
Net Sales ($M)
$75.5
$29.3
Gross Margin
95%
94%
Operating Income ($M)
$42.7
$10.8
Fully Diluted, GAAP EPS
$0.48
$0.10
Q4-2011 Financial Results
•
Fourth quarter vials shipped: 3,360
•
Fourth quarter cash flow from operations: $31.4M
•
Channel inventory estimated to be within historic range
•
Medicaid reserves continue to appear adequate
•
No shares repurchased
•
Fourth quarter vials shipped: 3,360
•
Fourth quarter cash flow from operations: $31.4M
•
Channel inventory estimated to be within historic range
•
Medicaid reserves continue to appear adequate
•
No shares repurchased
Record Net Sales (up 158%) and Solid Earnings (EPS up 380%)
Record Net Sales (up 158%) and Solid Earnings (EPS up 380%) |
 9
2011
2010
Net Sales ($M)
$218.2
$115.1
Gross Margin
94%
93%
Operating Income ($M)
$113.1
$53.8
Fully Diluted, GAAP EPS
$1.21
$0.54
2011 Financial Results
•
Total vials shipped: 10,710
•
Cash flow from operations: $85.6M
•
Channel inventory estimated to be within historic range
•
Medicaid reserves continue to appear adequate
•
884,300 shares repurchased
•
Total vials shipped: 10,710
•
Cash flow from operations: $85.6M
•
Channel inventory estimated to be within historic range
•
Medicaid reserves continue to appear adequate
•
884,300 shares repurchased
Record Net Sales (up 90%) and Solid Earnings (EPS up 124%)
Record Net Sales (up 90%) and Solid Earnings (EPS up 124%) |
 10
02/15/12
Cash / ST Investments
$226M*
Accounts Receivable
$44M
Questcor is Cash Flow Positive
Debt-free balance sheet
Debt-free balance sheet
*After
return
of
$78
million
of
cash
to
shareholders
through
share
repurchases.
*After
return
of
$78
million
of
cash
to
shareholders
through
share
repurchases. |
 11
Acthar has sustainable competitive
Acthar has sustainable competitive
advantages-without FDA approval risk
advantages-without FDA approval risk
Acthar is approved for 19 indications-many
Acthar is approved for 19 indications-many
in large markets with sizable unmet need
in large markets with sizable unmet need
Sales in MS and NS are growing rapidly,
Sales in MS and NS are growing rapidly,
yet market penetration is low
yet market penetration is low
Developing new vertical market -
Developing new vertical market -
Lupus
Lupus
High margins provide good
High margins provide good
operating leverage
operating leverage
Profitable, cash flow positive, no debt
Profitable, cash flow positive, no debt
Investment Highlights |