Questcor reports more federal probes; shares fall
(Reuters) - Questcor Pharmaceuticals Inc said it was being investigated in multiple jurisdictions, in addition to an ongoing probe by the U.S. Attorney's office in Pennsylvania into its promotional practices, sending its shares down 10 percent.
The company said in a post-earnings call that the U.S. Attorney's office for the Southern District of New York and the Los Angeles office of the Securities and Exchange Commission had joined the earlier probe.
The drugmaker has been under investigation for more than a year over its promotional practices for its flagship product, Acthar gel. The gel is used to treat disorders including multiple sclerosis and allergies.
Questcor, which on Tuesday reported a 45 percent jump in third-quarter sales of Acthar, said that it was informed verbally of the new investigations by the U.S. Attorney's office in Philadelphia.
The company said such investigations are not uncommon and it was cooperating with the agencies. Questcor did not divulge further details in response to questions on the call.
Shares of the drugmaker were at $63.00 after closing at $69.73 on the Nasdaq.
(Reporting By Adithya Venkatesan; Editing by Rodney Joyce)