Questcor -2.8% as CRT says take profits after CEO discusses M&A potential

|By:, SA News Editor

Questcor (QCOR -2.8%) rose ~11% yesterday as CEO Don Bailey signaled a desire to make acquisitions, but CRT Capital suggests taking profits, cautioning that the sector is in the mid/late innings of M&A, not every management team is adept at doing deals and the lack of clinical data on Acthar could make a deal unpalatable (

CRT sees Bailey's comments as a strong signal that management is looking for ways to enhance shareholder value, but it thinks much of what will drive future revenues and profits will still be linked to Acthar, which continues to benefit from focused marketing; the firm estimates nearly all of QCOR's profits are tied to Acthar.