Questcor Pharmaceuticals Inc (QCOR): Impressive Revenue Growth

Other BioPharma Players

Sarepta Therapeutics Inc (NASDAQ:SRPT) is working on its own orphan drug for Duchenne Muscular Dystrophy, a rare disease in young boys. If the company is able to get approval from FDA, then Sarepta Therapeutics Inc (NASDAQ:SRPT) will have an extremely attractive drug, which it intends to sell for $150,000-$200,000 per course of treatment. As a result, revenues of Sarepta Therapeutics Inc (NASDAQ:SRPT) will go through the roof, and so will its stock price. I would strongly recommend buying Sarepta; there is need for the treatment, and the drug is likely to be approved.

Dendreon Corporation (NASDAQ:DNDN) has faced almost the same fate as Questcor – the stock is down about 60% over the past year. Dendreon Corporation (NASDAQ:DNDN), however, is a completely different story when it comes to the business. Questcor Pharmaceuticals Inc (NASDAQ:QCOR) has a product that has been bringing in massive revenues and cash flows for the company; Dendreon Corporation (NASDAQ:DNDN), whose cancer treatment drug Provenge has struggled since its approval three years ago, does not. For the future, Analysts are pessimistic about the company and believe the revenue will remain under pressure for some time.

Conclusion

Questcor is undervalued, in my opinion. All the fundamentals are solid for the company – the product is very strong and is used for some critical conditions. The business model is strong and the insurance coverage is present, which provides certainty to revenues. I expect the stock to reach $40 during the current year, which translates into over 16% return from the current levels.

The article Why Questcor Is Undervalued originally appeared on Fool.com and is written by Ishtiaq Ahmed.

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