Questcor (QCOR) Issues Business Update; Acthar Patients Continue to Get Reimbursement

Commencing on January 9, 2013, Questcor Pharmaceuticals, Inc. (Nasdaq: QCOR) will utilize an updated presentation for investor relations purposes.

The Company is providing the following business update, based on the most recent data available to the Company at the time of this filing:

• General Business. The Company believes that the fourth quarter ended December 31, 2012 resulted in record vial shipments of H.P. Acthar Gel (repository corticotropin injection).
  
  
• Rheumatology. The Company is encouraged by the initial results of its pilot selling efforts in rheumatology. Based on these initial results, the Company is in the process of expanding its rheumatology sales force from the initial pilot force of 12 Acthar Specialists to approximately 50 Acthar Specialists.
  
  
• Reimbursement. Based on information available as of the filing of this Form 8-K, patients with serious, difficult-to-treat medical conditions addressed by Acthar on-label indications have continued to have access to Acthar through commercial insurance, Medicare, Medicaid and other government programs, as well as through our free drug program for uninsured patients. Acthar is most commonly prescribed by physicians for patients for whom an additional FDA-approved treatment alternative is needed, typically after a first line therapy has been administered. For such patients, insurance coverage for Acthar has continued to remain favorable.
  
  
• Ongoing Commitment to the Science Behind Acthar and Demonstrating Clinical Benefits of Acthar. The Company spent $22.1 million on R&D in the first nine months of 2012, which was approximately 100% greater than the amount spent in the prior nine month period. The Company continues to fund various R&D efforts, including 65 clinical and pre-clinical studies during the first nine months of 2012. Among the various R&D efforts, the Company is working on a number of new indications such as Amyotrophic Lateral Sclerosis (ALS).
  
  
• Strategic Acquisition. The Company previously announced its entry into a definitive agreement pursuant to which the Company will acquire 100% of the issued and outstanding shares of BioVectra Inc. The transaction is expected to close in January and provides for an up-front cash payment of C$50 million. As of December 31, 2012, the Company had $155 million in cash, cash equivalents and short-term investments. As noted in the Company’s press release announcing the transaction on January 2, 2013, the transaction further secures Acthar manufacturing trade secrets, puts the Company in a better position to meet the continuing growth in demand for Acthar, diversifies the Company’s revenue and provides the Company with a platform for potential international expansion.

To view the presentation, click here.