QSC

[buddjas1]

QSC

Think VPHM 3 years ago.  One-trick pony that jacked-up the price on their one drug; caused EPS turn around.  Cash flow now funding stock buy back and R&D.

[BigSully1]

6:31AM Questcor amends agreement with U.S. Acthar distributor; amendment to generate favorable impact on Questcor operating results and cash flows (QSC) 4.35 : Co announces that it has amended its distribution agreement with its U.S. distributor for H.P. Acthar Gel. Under the new terms, the discount provided by Questcor to Questcor's exclusive U.S. distributor will be reduced significantly. This amendment is effective on June 1, 2008. In addition, Questcor will now receive its proceeds from the sale of Acthar to its U.S. distributor in 30 days rather than the current 60 days. If annual Acthar demand remains in the range of 5,100 vials to 5,700 vials, the amendment is expected to favorably impact Questcor's operating results and cash flows. "The new distribution terms are particularly attractive because they will improve Questcor's net sales, gross margins, and net income but will leave pricing to Acthar end-users completely unchanged. Further, the reduction in payment terms from 60 days to 30 days will reduce our accounts receivable by approximately 50% and will generate a one-time permanent increase in our cash position of approximately $10 million, which we expect will be reflected in our September 30, 2008 balance sheet."