Seeking Alpha

Insurers are taking an even more cautious stance on Questcor's (QCOR -4.1%) Acthar, according to...

Insurers are taking an even more cautious stance on Questcor's (QCOR -4.1%) Acthar, according to a Citron Research report. The short seller is now claiming that Humana (HUM -1.5%) has issued a new Commercial Preauthorization document containing a new, specifically asterisked preauthorization for reimbursement for Acthar, which it contends is part of a pattern of insurers taking a more restrictive stance on authorization policy with regard to the drug's reimbursement.
Comments (40)
  • Claiming.....could you please stop re-distributing this stuff? Citron has a short position and just yesterday went to publish a change in UNH policy which turned out to be incorrect. You are just adding to the volatility of this stock by promoting gossip.
    19 Oct 2012, 01:52 PM Reply Like
  • You realize, Citron even admits, right in their report, that Acthar was never on the 2012 pre-auth, so it's not just the notification, but Acthar itself, that is being added.


    Seems to contraindicate the rest of Citron's story, doesn't it?


    But that's just my opinion.


    Sigh, journalism is dead in this country.
    19 Oct 2012, 01:53 PM Reply Like
  • Seeking Alpha should highlight that Citron is now contradicting his original thesis.
    19 Oct 2012, 02:03 PM Reply Like
  • Seekingalpha, shame on you. you should know better than to post news from such a questionable source with a HUGE history of fraud.
    19 Oct 2012, 01:56 PM Reply Like
  • and I was just telling some friends how Seeking Alpha was learning to be smarter than Citron... LOL guess not, they didn't even read his report, they just pushed the headline again.
    19 Oct 2012, 01:56 PM Reply Like
  • I mean come on, "claiming" ?!!? I claim that Astrazeneca is bidding 50$ for qcor. Please post to your newsfeed.
    19 Oct 2012, 01:57 PM Reply Like
  • At this moment, I'm embarrassed to be a contributing writer.
    19 Oct 2012, 01:59 PM Reply Like
  • Seeking Alpha loosing credibility with Citron is time to move!
    19 Oct 2012, 02:01 PM Reply Like
  • You need to post your comments on stocktalk at the bottom or twitter. I hope the shorts get ready to pay the dividend.
    19 Oct 2012, 02:07 PM Reply Like
  • This Preauthorization document is not for prescriptions that are filled in a pharmacy.


    "Medications include those that are delivered in the physician’s office, clinic, outpatient or home setting."


    Humana has a long list of these type of drugs. I don't think it is anything unusual for this insurer.


    Most people in this country have BC/BS, UNH, or medicare/medicaid. I have never known anyone who had Humana.
    19 Oct 2012, 02:15 PM Reply Like
  • While it's good for all of you to post your complaints in the comments, for other readers to see...


    you also need to submit this form, if you want to complain to Seeking Alpha

    19 Oct 2012, 02:19 PM Reply Like
  • The FUD train continues...
    19 Oct 2012, 02:39 PM Reply Like
  • I'm a little torn. I would rather read the Citron statement and read the comments than find it in a news feed that offers no other perspective.
    19 Oct 2012, 03:39 PM Reply Like
  • Then let them post it as any other article. If people want to read it, ok. But it doesn't need to be emailed out to people who do not follow them. They are not an expert analyst on QCOR. They are a short seller.
    20 Oct 2012, 11:49 AM Reply Like
  • For those who wis to believe this I ask that you take a look at thsi link as well. Judge for your self.


    Another link showing a 5.82% recent passive buy in of Deerfield Management to Questor (QCOR). Cintron most likely retains a massive amount of short orders on the books and is making false claims in attempts to purposely weaken the sahre price of QCOR. I urge all who read this do perform your own research and determine your own conclusions.
    19 Oct 2012, 03:43 PM Reply Like
  • Citron(Andrew Left)? One only has to look into the past conviction of Andrew Left to determine that something is not Right!!!
    19 Oct 2012, 03:43 PM Reply Like
  • Why would anyone pass along Citron's latest hype?
    Citron is one shady operation that serves only themselves by publishing lies and inuendo to the detriment of the stockholders of the companies that they target.
    24 Oct 2012, 03:10 PM Reply Like
  • Here's an open question for Seeking Alpha... if you wanted to report that the stock price was currently down, why didn't you use the obvious Options Expiration Pain Theory, to explain why it's pinning to $25.


    Or is Citron buying ad space?
    19 Oct 2012, 03:57 PM Reply Like
  • Seeking Alpha is playing up to that convicted crooked manipulator and thief Andrew Left. Why? He is a master of flim flam and a producer of innuendos and lies. Look up his record because it's all available. Just Google his name and see his history. I bet his mother is so proud of him.
    19 Oct 2012, 04:38 PM Reply Like
  • SA--your credibility as a source of news and analysis is what you offer to visitors.


    When you publish news items from known short sellers like Citron, then you are participating in Citron's attempt to manipulate stock prices.


    Consider the source.
    19 Oct 2012, 05:30 PM Reply Like
  • Questcor should send out a letter saying that the news is coming from a known short seller. It's really up to these companies to defend their stock. I would prefer they come on tv immediately when the stock drops and defend their company. Short sellers should not be able to attack a company without recourse.
    19 Oct 2012, 06:09 PM Reply Like
  • blackout period... earnings...
    19 Oct 2012, 06:12 PM Reply Like
  • Then an investor needs to come out and say what the short seller is doing.
    19 Oct 2012, 06:23 PM Reply Like
  • This Market Current was sent to 2,280 people who get email alerts on QCOR


    Who decides what gets emailed? Maybe they are short too. Maybe this website is just to make themselves rich.
    19 Oct 2012, 06:34 PM Reply Like
  • You subscribe to those currents. On the main page.
    19 Oct 2012, 06:55 PM Reply Like
  • Folks, regarding any factual dispute here, this item states that Citron is pointing to the new Humana doc, and that Citron is claiming (not proving) that this means a tighter stance on authorization. The Market Current notes Citron is a short seller.


    Is any of that in dispute?
    19 Oct 2012, 07:24 PM Reply Like
  • A good journalist would perhaps fact check the claim, or? Pointing to trash is wasting time, bandwidth, and sympathy.
    19 Oct 2012, 07:33 PM Reply Like
  • It's not a coverage policy, their coverage policy never changed, this is a marketing document that goes out to employer groups, etc.


    I guess my first question would be, why does a blogger from another site, get mentioned in Market Currents, with less editorial scrutiny than a contributing writer would?


    My second question would be, why would a blogger warrant mention at all? This isn't Lazard, Goldmann, Jefferies, or even an entity that has to report to a regulator, or shareholder that would hold them accountable.


    My third question is, will Seeking Alpha Market Currents be reporting on every insurance company's Marketing document changes, that reflect their continued non-changed coverage of a drug? If so, we are going to be busy here. Marketing department's documents are not scrutinized as heavily by Compliance Officers, and others. They are constantly corrected and resent.


    Lastly, no one is saying it is true. We are saying there is only 1 or 2 sentences in Citron's report that are true, and then purposefully misleading opinions. Preying on the naivety of the reader, with regard to the insurance industry.
    19 Oct 2012, 07:34 PM Reply Like
  • When you read this report it becomes immediately apparent what a gentleman Citron really is. He writes in a paragraph: "Citron notes that none of the recent round of defenses of the company even mention the ongoing Department of Justice investigation. It is Citron's opinion that this investigation remains highly material to the company's future business prospects."


    Citron is NOT naive. First, the earnings call is a few days away and the company can not correspond to anything right now. Even better, when they are under investigation they can not comment on that.


    Manipulation at its finest? Sure not. The SEC should investigate whether there is a correlation between the articles and the selling/buying of shares by Citron. But who am I kidding. Anyone trading that stock could see that there is a relation between Citron tweets and mini flash crashes of the stock last 2 days. It is recovering better and better from those though.


    I am long QCOR
    19 Oct 2012, 07:58 PM Reply Like
  • I am wondering why there is a black-out period. Is this just some holdover from a time when people were thought to be more honest? The insiders have a way to find out the truth. But the general public is suppose to remain in the dark? Or believe the short sellers? Believe the pundits on tv? I would rather hear directly from the companies and hear their side. I can't make a decision if the media is between me and my investment.
    20 Oct 2012, 11:56 AM Reply Like
  • Association your company with a rag like Citron speaks volumes about Seeking Alpha. Try doing some research prior to parroting a known short rag like Citron. Yes, journalism is dead!
    20 Oct 2012, 03:24 AM Reply Like
  • I find it incongruous that Seeking Alpha would give someone like Andrew Left/Citron a soapbox to ply his lies and innuendos. Are you not aware of his shady background in the investment world from the very first time he entered the field? A history of scamming, misappropriation of customer funds and so much more. He has no validity and plays by a different set of rules. The novice investor, with limited knowledge of the facts, cannot discern the intricacies of the scientific facts as well as the reimbursement mechanisms of insurance companies. Weaker hands are being decimated by these bear raids initiated by Citron/Left. You just know that with the likely event that earnings are going to be good there will be another tweet with misleading and or incorrect facts. I do notice that the damage is less intense and the recovery more robust. Stronger hands prevail.
    20 Oct 2012, 08:55 AM Reply Like
  • Little good does it do now for those who owned the shares a month ago. I've been sitting in so much cash, just like millions of people, who fear the crashes.
    20 Oct 2012, 11:58 AM Reply Like
  • A few things about this.


    For those saying they want to read the relevant docs and make up their own mind -- the claim and the Humana doc are prominently linked above so you can do so. That's the best outcome of an item like this: You're informed about something that might be moving the stock, and are able to see for yourself whether there's anything to it.


    Many of us have noted that Citron is publishing bearish reports this week, and the stock is moving off of that. This item alerted investors to the Friday occurrence of that, nothing more. That's not "associating with" or "endorsing" a point of view on buying or selling; let's be clear about that. Market Currents is an alerts-based feature; the alternative would be just leaving investors to their own devices to find out what's up with QCOR on Friday?


    I think if you're long, you welcome the opportunity to see for yourself what's going on -- if anything -- and then have a platform from which to respond/refute ... whether in a long comment thread, or an instablog or article of your own.


    Heading into earnings I'm looking forward to information from involved investors like some of you to shed some light on the details of preauthorization and enrollment-period changes and make your own case for (or against) the stock.
    20 Oct 2012, 03:24 PM Reply Like
  • Folks,


    I submitted a full article on earnings, catalysts, and citron, about an hour ago.
    20 Oct 2012, 03:43 PM Reply Like
  • Word to the wise, after a thorough review of all Humana 2013 drug lists, and change docs, we are going to have a repeat performance of UNH.


    Currently, even though the marketing doc was updated with appropriate information, Humana left Acthar off the 2013 drug lists. So, we will probably get another Citron report, once they put it in there.


    Again, growing prescriptions have put this on the Insurance Company's radar to make sure it's in their docs.
    22 Oct 2012, 07:56 AM Reply Like
  • When I see a Citron report I just flush.
    22 Oct 2012, 08:05 AM Reply Like
  • There maybe a big bad surprise for Citron coming out of AET ;P - Hahaha
    22 Oct 2012, 08:43 AM Reply Like
  • I don't think we'll have to wait till earnings to see a massive jump in Questcor stock. Aetna will likely resurface within the next week or so with a "clarification" of their revised policy on Acthar. In it, you will see retention of some "pre-approval" language - mainly to save face. What you will happily see in addition to that, is a positive payment policy on the wide range of applications that the FDA has already approved for Acthar, most notably MS and NS.


    This is only a guess, but I remain confident that Aetna will want to avoid the legal implications of refusing to pay for approved FDA uses and for what is now - common practice among doctors and their patients in the field.


    When this happens, the folks at Citron will be quieted at least for a time.
    22 Oct 2012, 09:50 AM Reply Like
  • The shorts are going to continue with their "news" so just ignore them and buy more on any dip. The shorts are going to be squeezed into losses and have to pay that dividend.
    23 Oct 2012, 04:19 PM Reply Like
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