ANAHEIM, Calif. (AP) — Questcor Pharmaceuticals Inc. is raising its quarterly dividend by 20 percent to 30 cents per share from 25 cents per share, its second dividend increase this year. Shares surged in morning trading Thursday.
The biopharmaceutical company said that the dividend will be paid on Oct. 30 to shareholders of record on Oct. 22.
President and CEO Don Bailey said in a statement that the dividend hike accounts for the company's strong financial performance to date, which has been helped by higher usage of H.P. Acthar gel among doctors to treat patients with serious, difficult to treat medical conditions.
Acthar is an injectable drug approved by the Food and Drug Administration to treat infantile spasms, certain rheumatology-related conditions and other ailments. It is Questcor's main product.
Shares of the Anaheim, Calif., company gained $3.50, or 6.4 percent, to $58.10. Over the past 52 weeks, the stock has traded in a range of $19.90 last October to $74.76 in late August.