UPDATE: Jefferies Downgrades Questcor Pharmaceuticals to Hold

Jefferies & Company has published a research report on Questcor Pharmaceuticals QCOR and downgraded the company from Buy to Hold after the announced Aetna AET decision on Wednesday. In the report, Jefferies wrote, "Because of the vague statements issued in the Aetna (AET, Buy, $39.43) Clinical Policy Bulletin regarding Acthar, we believe there's still confusion regarding the potential reimbursement for Acthar. However, after speaking with an Aetna representative last night, we have confirmed that Aetna is not reimbursing for Acthar except for infantile spasm. We also learned that there is little room for QCOR to reverse this policy decision because it would require data from a clinical trial published in a peer-reviewed medical journal. Furthermore, the reimbursement change was finalized after clinical data analysis by pharmacy directors including discussions with neurologists and therefore a decision reversal, in the near-term, is unlikely. Lastly, while patients may submit an appeal on a case-by-case basis, it is rare for claims to successfully navigate this process." Jefferies also lowered the price target from $60 to $30 on Questcor Pharmaceuticals, which closed Wednesday at $26.35.