Questcor Pharmaceuticals Inc (QCOR) Will Carry On its Rise: VIVUS, Inc. (VVUS), Arena Pharmaceuticals, Inc. (ARNA)

No direct competition

There is no direct competition for Acthar in the market, and the firm enjoys complete dominance due to the novelty of the drug. However, there are some interesting investments available in the bio-Pharma sector.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is close to launching its anti-obesity drug, Belviq. The drug is highly anticipated due to its safety and efficacy profile. Belviq was recently given Schedule IV by DEA, and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)’s Partner, Eisai, is making arrangements to launch the drug in North America. At the moment, most of the events are priced in; however, the successful launch of Belviq will surely push up the stock price.

Another player in the anti-obesity market, VIVUS, Inc. (NASDAQ:VVUS) , has launched its anti-obesity drug, Qsymia. However, due to the limited marketing and suspect safety profile, the company has not been able to establish itself as the leading player in the market. VIVUS, Inc. (NASDAQ:VVUS)’ stock price has come down since the approval of the drug, and the company will have to post some serious revenue numbers to lift it.

Nonetheless, I believe the obesity market is massive, and it will be able to accommodate both of these companies. One will surely sell more pills than the other, however, I am confident that both of these companies can prove to be good investments.

Conclusion

There is still a lot of room for Questcor to increase revenue. Questcor has strong fundamentals, and I expect it to continue its impressive financial performance. From here on, I expect the stock to slowly reach $40 mark within the next six months. It can go even further, but I am keeping my estimate on the conservative side.

There is still wide insurance coverage available for Acthar, which should allow the company to increase its revenue. Investigation into the marketing practices remains the only threat to the company at the moment. If the results of the investigations are positive, Questcor will not have any trouble reaching $40 in the next six months.

The article Questcor Will Carry On its Rise originally appeared on Fool.com and is written by Ishtiaq Ahmed.

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