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Before we get started, I would like to remind you that during the course of this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company’s past and future filings with the SEC, including without limitation the company’s Forms 10-K and 10-Q, which identify the specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements.With that out of the way, let me turn the call over to now to Don Bailey, President and Chief Executive Officer of Questcor Pharmaceuticals. Don Bailey – President and Chief Executive Officer Thanks Doug. Good afternoon everyone. With me today are several other members of our management team, Steve Cartt, our Chief Business Officer and Mike Mulroy, our CFO will be making prepared remarks and others are here to answer questions. The highlights for the third quarter of 2011 are on the screen if you are viewing the accompanying slide presentations. The highlights demonstrate that Questcor’s strategy to sell more Acthar continues to generate increasing revenue and earnings. Our commercial organization is steadily expanding to number of neurologists, nephrologists, and child neurologists prescribing Acthar. Acthar paid prescriptions in the MS market grew 174% over the third quarter of 2010 marking our 15th consecutive quarter of growing MS paid scripts. During the quarter, we also completed the planned expansion of our nephrology sales force. Although our selling effort was somewhat disrupted by this expansion, paid Acthar prescriptions for nephrotic syndrome increased in the quarter over the second quarter. Our continued success in these key markets combined with solid IS paid scripts in the quarter led to increases in shipments of Acthar vials, increased net sales, higher operating margins, higher earnings, higher EPS, and most importantly, higher cash levels.
This chart on the screen now shows Acthar’s MS prescription growth on a quarterly basis. A key priority remains growing the use of Acthar in the treatment of MS exacerbations or relapses and this focus drove our year-over-year increase in the number of paid Acthar prescriptions for MS. In the third quarter of 2011, we had 886 paid MS scripts compared with 323 scripts a year ago. The major factors behind the increased prescriptions are positive outcomes and the increasing productivity of our larger MS commercial teams.On to the chart, this chart shows the same MS paid prescription data on a monthly basis. You can see the MS script level during the third quarter increased each month of the quarter. We should also note that some months are sequentially down and some up over the longer history. But that overall trend is about 160% compounded annualized growth rate over four years. So Acthar has shown rapid growth in the MS market this year. We believe we may still be early on in penetrating this market. We do not have definitive data on the total number of MS relapse patients for whom steroids are not returning them to an acceptable quality of life. But we believe there is ample room for growth for Acthar in this MS market. Based on the estimate of 200,000 relapse as annually in the US and the annualized third quarter prescription count of about 4000 Acthar MS prescriptions, we likely only have single-digit penetration of this market. Let me turn to our efforts in building the use of Acthar to treat nephrotic syndrome. As I mentioned in the highlights, our records resulted in an increase in paid Acthar prescriptions for nephrotic syndrome in the third quarter despite the disruption caused by the nephrology sales force expansion. Read the rest of this transcript for free on seekingalpha.com