2011 Silver Anvil for Investor Relations: Questcor Pharmaceuticals
The Public Relations Society of America recognized Questcor Pharmaceuticals and EVC Group with the 2011 Silver Anvil Entry for Investor Relations on behalf of companies with revenue up to $500 million.
In late 2007, QCOR successfully executed a strategy that restored its profitability and positioned it for growth. Investors rewarded the company; the stock climbed 500+% to $9.24. During 2009, the stock steadily sank to below $4.00, due first to a concern about a competitive product and then an unexpected Medicaid rebate reserve. So in 2010, QCOR and EVC Group planned and executed a campaign to rebuild the valuation.
After extensive research, the campaign’s primary objective was to build the QCOR’s valuation by adding new institutional holders and sell–side analyst coverage. EVC aimed to do this by marketing the company’s major material events directly to actionable buy–side investors, sell–side analysts, and financial journalists; introducing senior management to these targets in non–deal road shows and one–on–one meetings; and securing invitations for management to present at key investor conferences.
The campaign resulted in
- New Holders: Sixty–six institutional investors initiated positions in QCOR, according to Q2 and Q3 13–F filings. This included a major institution that bought more than 5% of QCOR.
- New Analyst Coverage: Questcor gained an analyst with a "Strong Buy" rating; existing analysts maintained "Buy" ratings throughout the year.
- Conference Invitations: Questcor presented at three high–profile investor conferences sponsored by firms that do not cover the stock, as well as the conferences sponsored by its covering analysts.
- Media Results: EVC helped The Wall Street Journal, The Street.com and Investor’s Business Daily pen profiles of QCOR, and encouraged upbeat and positive trade and financial media coverage around the corporate and regulatory milestones.
- Conference Call Participation: The number of quarterly call participants in 2010 increased an average of 22% over the number of participants on calls in 2009.
EVC believes that this campaign demonstrates the enduring value of clear expectations, execution, and face–to–face meetings that build relationships. Results like these are possible when a credible management team tells a compelling story to “actionable” targets: the investors, analysts, and reporters and others who are able to take action that can impact valuation.