UNION CITY, Calif.--(BUSINESS WIRE)--Oct. 17, 2005--Questcor
Pharmaceuticals, Inc. (AMEX:QSC), a specialty pharmaceutical company
that develops and commercializes novel therapeutics for the treatment
of neurological disorders, today announced the completion of a
transaction to divest its non-core pharmaceutical products, in
accordance with its new central nervous system (CNS) strategy.
Questcor completed the sale of its Nascobal(R), Ethamolin(R) and
Glofil(R)-125 products to QOL Medical LLC for $28.3 million, plus the
assumption by QOL of the obligation to pay Nastech Pharmaceutical
Company Inc. (NasdaqNM: NSTK) $2 million on the issuance by the US
Patent and Trademark Office of a patent on Nascobal Nasal Spray.
"This is a pivotal event in our previously-announced plans for
transforming Questcor into a true CNS-focused specialty pharmaceutical
company," stated James L. Fares, President and CEO of Questcor. "This
transaction raises significant capital for Questcor for future
business-building activities centered in the Neurology field, while
avoiding any shareholder dilution. Questcor personnel can now begin
focusing exclusively on supporting H.P. Acthar(R) Gel and building
Questcor's CNS portfolio."
Through the remainder of 2005, Questcor will continue focusing its
sales and marketing efforts on promoting H.P. Acthar Gel to
neurologists. In order to expand its CNS portfolio, Questcor is
continuing to evaluate opportunities to acquire currently marketed
products and to build a pipeline of commercially attractive
development opportunities. Questcor expects to provide further updates
on these activities by the end of 2005.
Edgemont Capital Partners served as exclusive advisor to Questcor
on this transaction.
Questcor Pharmaceuticals, Inc.(R) (AMEX:QSC) is a specialty
pharmaceutical company that develops and commercializes novel
therapeutics for the treatment of neurological disorders. Questcor
currently markets H.P. Acthar(R) Gel (repository corticotropin
injection), an injectable drug indicated for the treatment of
exacerbations associated with Multiple Sclerosis. For more
information, please visit www.questcor.com.
QOL Medical LLC is a specialty pharmaceutical company dedicated to
improving quality of life for the patients we serve, their families
and caregivers. QOL Medical currently markets Sucraid (sacrosidase)
oral solution. For more information, please visit www.qolmed.com.
Note: Except for the historical information contained herein, this
press release contains forward-looking statements that involve risks
and uncertainties. Such statements are subject to certain factors,
which may cause Questcor's results to differ from those reported
herein. Factors that may cause such differences include, but are not
limited to, Questcor's ability to accurately forecast and create the
demand for each of its products, the gross margins achieved from the
sale of those products, Questcor's ability to enforce its exchange
policy, the accuracy of the prescription data purchased from
independent third parties by Questcor, the sell-through by Questcor's
distributors, the inventories carried by Questcor's distributors, and
the expenses and other cash needs for the upcoming periods, Questcor's
ability to obtain finished goods from its sole source contract
manufacturers on a timely basis if at all, Questcor's need for
additional funding, uncertainties regarding Questcor's intellectual
property and other research, development, marketing and regulatory
risks, and, to the ability of Questcor to implement its strategy and
acquire products and, if acquired, to market them successfully as well
as the risks discussed in Questcor's annual report on Form 10-K for
the calendar year ended December 31, 2004 and other documents filed
with the Securities and Exchange Commission. The risk factors and
other information contained in these documents should be considered in
evaluating Questcor's prospects and future financial performance.
Questcor undertakes no obligation to publicly release the result
of any revisions to these forward-looking statements, which may be
made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
Questcor Pharmaceuticals, Inc.
James L. Fares, 510-400-0700
SOURCE: Questcor Pharmaceuticals, Inc.