Attached files
| file | filename |
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| 8-K - FORM 8-K - QUESTCOR PHARMACEUTICALS INC | d385342d8k.htm |
| EX-99.2 - TRANSCRIPT OF CONFERENCE CALL - QUESTCOR PHARMACEUTICALS INC | d385342dex992.htm |
| EX-99.1 - QUESTCOR PHARMACEUTICALS, INC. PRESS RELEASE - QUESTCOR PHARMACEUTICALS INC | d385342dex991.htm |
 1
Second Quarter 2012
Conference Call
Second Quarter 2012
Conference Call
NASDAQ:
QCOR
NASDAQ:
QCOR
1
Exhibit 99.3 |
 •
Today’s webcast, accompanying slide presentation
and archived replay are available online at
•
Telephone replay is available by dialing:
–
U.S.: 877-941-9205
–
International: 480-629-9819
•
Replay Passcode: 4550797#
•
Today’s webcast, accompanying slide presentation
and archived replay are available online at
•
Telephone replay is available by dialing:
–
U.S.: 877-941-9205
–
International: 480-629-9819
•
Replay Passcode: 4550797#
Conference Call Logistics
2
2
http://ir.questcor.com/events.cfm |
 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
Rheumatology,
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,
estimated
channel
inventory
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.
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
Rheumatology,
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,
estimated
channel
inventory
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.
3 |
 •
Record financial performance
–
4,710 vials shipped, up 94% YOY
–
$112.5M in net sales, up 145% YOY
–
$0.65 GAAP EPS (diluted), up 210% YOY
•
314 paid NS scripts
•
1,110 paid MS scripts
•
96 paid IS scripts
•
Record financial performance
–
4,710 vials shipped, up 94% YOY
–
$112.5M in net sales, up 145% YOY
–
$0.65 GAAP EPS (diluted), up 210% YOY
•
314 paid NS scripts
•
1,110 paid MS scripts
•
96 paid IS scripts
Strong Second Quarter Results
4 |
 Paid Rxs
Paid Rxs
5
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. NS Scripts-Strong Continued Growth
28
5
Yellow numbers in the bars show the number of NS sales
representatives
making
calls
for
the
majority
of
the
quarter.
Q3
‘11
and
Q2 ‘12 included expansion and training of new sales people.” |
 77
30
38
MS Scripts-Record of Consistent Growth
Paid Rxs
6
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. |
 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. 15-30
reps
30-38
reps
38-77
reps
7
450
0
50
100
150
200
250
300
350
400
450
0
50
100
150
200
250
300
350
400 |
 Growth in Shipped
Vials 8 |
 •
Understanding the biological properties of Acthar
–
Specific biochemical pathways, cells, and tissues
–
Immunomodulation and anti-inflammatory
•
On-label indications
–
Proteinuria in NS, MS flares, Lupus
•
New indications
–
Nephrology (eg, diabetic nephropathy)
–
Indications with autoimmune/inflammatory component (eg,
neurology, cardiovascular, hematology, pulmonary)
•
Understanding the biological properties of Acthar
–
Specific biochemical pathways, cells, and tissues
–
Immunomodulation and anti-inflammatory
•
On-label indications
–
Proteinuria in NS, MS flares, Lupus
•
New indications
–
Nephrology (eg, diabetic nephropathy)
–
Indications with autoimmune/inflammatory component (eg,
neurology, cardiovascular, hematology, pulmonary)
Questcor Acthar R&D Efforts:
> 30 Preclinical and Clinical Studies
9
Understanding Acthar:
science of how it works and clinical use |
 •
Clinical use of Acthar
–
Nonclinical research
–
Clinical research
•
On-label indications
–
Proteinuria in nephrotic syndrome (NS), multiple sclerosis (MS)
flares, infantile spasms, lupus
•
Off-label indications
–
Diabetic nephropathy, traumatic brain injury, autism, MS
maintenance treatment
•
Clinical use of Acthar
–
Nonclinical research
–
Clinical research
•
On-label indications
–
Proteinuria in nephrotic syndrome (NS), multiple sclerosis (MS)
flares, infantile spasms, lupus
•
Off-label indications
–
Diabetic nephropathy, traumatic brain injury, autism, MS
maintenance treatment
Academic Clinical Interest in Acthar:
~ 30
Investigator Initiated Studies 10
Understanding Acthar: clinical use |
 Q2
– 2012
Q2 –
2011
Net Sales ($M)
$112.5
$46.0
Gross Margin
94%
94%
Operating Income ($M)
$61.0
$20.4
Fully Diluted, GAAP EPS
$0.65
$0.21
Q2-2012 Financial Results
•
Second quarter vials shipped: 4,710
•
Second quarter cash flow from operations: $43.2M
•
Channel inventory estimated to be within the normal range
•
Medicaid reserves continue to appear adequate
•
3,730,069 shares repurchased during Q2-2012
Record Net Sales (up 145%) and Solid Earnings (EPS up 210%)
Record Net Sales (up 145%) and Solid Earnings (EPS up 210%)
11 |
 07/23/12
Cash / ST Investments
$129M*
Accounts Receivable
$54M
Questcor is Cash Flow Positive
Debt-free balance sheet
*After return of $264 million of cash to shareholders through share repurchases.
*After return of $264 million of cash to shareholders through share repurchases.
12 |
 Acthar has
sustainable competitive advantages-without FDA approval risk
Acthar is approved for 19 indications-many
in large markets with sizable unmet need
Sales in NS and MS are growing rapidly,
yet market penetration is low
Developing new vertical market -
Rheumatology
High margins provide good
operating leverage
Profitable, cash flow positive, no debt
Investment Highlights
13 |