Questcor Pharmaceuticals, Inc. (QCOR): Here’s What Mr. Market Thinks

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is a $19 billion company with one marketed drug that has returned sales of $1.23 billion over the last 12 months and saw growth of 38.5% during its last quarter. Granted Alexion’s drug does produce higher sales than Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR)’s Acthar, yet in terms of logic, is it more reasonable to suggest that Questcor presents greater upside with its $535 million in sales over the last 12 months and its $1.60 billion market cap or that Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) presents more upside with its $1.23 billion in sales and its $19 billion market cap?

Now, before you answer the question above, be sure to remember that both companies have one product and that both companies are seeing near equal growth. However, only one company pays a dividend yield over 3% and has a forward P/E ratio of 6.0, and that one company is Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR).

Hence without painting the picture for you I will allow you to soak in those numbers, think about it, and then explain how in the world is Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) worth $19 billion if Questcor is only worth $1.75 billion? My opinion, the market has this wrong, there is a clear distinction in value, and Questcor Pharmaceuticals is presenting value with its current market capitalization.

The article The Market’s Got This Biotech All Wrong originally appeared on Fool.com.

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