UPDATE: Bank of America Downgrades Questcor Pharmaceuticals on Challenging ROI for ex-US Synacthen Sales

In a report published on Friday, Bank of America analyst Steve Byrne downgraded Questcor Pharmaceuticals QCOR from Buy to Neutral and raised the price objective from $48 to $51.

In the report, Bank of America stated, "We recognize the upside potential in ex-US Synacthen sales, given authorization to sell in >40 countries and currently low vial prices. However, we view the lack of intellectual property, uncertain clinical data, and no ex-US commercial/regulatory infrastructure as meaningful challenges. We assume a 40% sales cagr through the end of the decade, yielding negligible NPV after the purchase price. Upside could come from price actions from Sigma Tau (EU Synacthen licensee), new IP to justify an Irish tax rate, and clinical data to support price increases."

Questcor Pharmaceuticals closed on Thursday at $45.79.