UPDATE: Bank of America Initiates Questcor Pharmaceuticals with Buy on Favorable Fundamentals

Bank of America initiated coverage on Questcor Pharmaceuticals

with a Buy rating and price objective of $60 a share. Bank of America commented, "We believe QCOR has uniquely favorable fundamentals, due to 19 legacy indications for Acthar, orphan drug pricing, rapid revenue growth, low operating expenses, and high margin-driven share repurchases. However, Acthar has no patent protection and we believe the risk of generic competition (see below) will remain an overhang. In the intermediate term, we see upside to the shares as we expect revenue and earnings to be well ahead of expectations. Even based on consensus estimates, the stock is attractive on 2012 P/E and EV/sales metrics." Questcor Pharmaceuticals closed at $45.48 on Thursday.