UPDATE: Bank of America Reduces PO to $34 on Questcor Pharmaceuticals on Probe

Bank of America reiterated its Buy rating on Questcor Pharmaceuticals QCOR but lowered its price objective from $45 to $34. Bank of America commented, "Today Questcor announced in an 8-K that the US government has launched an investigation regarding the company's promotional practices. No other details were provided. Our conversation with CEO Don Bailey did not yield further visibility. The negative impact could be exacerbated by the lack of details provided by the company on today's news as well as last week's news of a change in language on Aetna's coverage policy for Acthar. While there are a wide range of potential outcomes, we now conservatively assume a fine equal to 2012 revenues ($463mn)… We also assume more cautious marketing activities could lead to a more modest revenue growth rate." Questcor Pharmaceuticals closed at $20.68 on Friday.