Questcor Pharmaceuticals Inc. (NASDAQ: QCOR) has seen a sudden and rapid share price tank today. Reports are out that Aetna Inc. (NYSE: AET) has managed to stop payments to the company. Details are still outstanding, but the research that was cited by Herb Greenberg on CNBC is apparently from Citron Research, which specializes in finding negative happenings in companies.
Questcor Pharmaceuticals is seeing its shares down more than 40% at $27.00 and its 52-week trading range is $24.14 to $58.91.
It was just yesterday that Oppenheimer & Co. raised its price target to $69 from $59 while maintaining an Outperform rating on the understanding that Questcor will get more revenue from H.P. Acthar gel. The timing of that research call is perhaps very unlucky, but that can happen in these situations.
Questcor is no stranger to big drops, but this by far the worst seen in a day. Earlier this year it saw its shares drop from $55 to $35 in a fairly short period of time.
Stay tuned and look for a press release from Questcor shortly.
JON C. OGG