Questcor Pharmaceuticals Inc. (NASDAQ: QCOR) is a situation that has gone from bad to worse. Last week there was a huge drop on the news Aetna Inc. (NYSE: AET) was altering its reimbursement coverage, but now comes new news that it is being investigated by the U.S. government over its promotional practices.
Its SEC Filing noted:
On September 21, 2012, Questcor Pharmaceuticals, Inc. (the “Company”) became aware of a U.S. government investigation involving the Company’s promotional practices. The Company intends to cooperate with the government in its investigation. Company representatives will not be able to provide any additional information on this matter, other than through potential public Regulation FD-compliant disclosures.
Last week we saw shares literally fall from just over $50.00 all the way down to $26.35 in one day. Shares closed at $30.13 by the end of the week as some investors and traders were hoping that the sell-off had dropped shares too far and too fast. That was then. Shares are trading down another 17.5% at $24.75 in early Monday trading.
The only good news is that the drop so far has not gone under the low last week of $22.26.
JON C. OGG
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