UNION CITY, Calif.--(BUSINESS WIRE)--May 5, 2006--Questcor
Pharmaceuticals, Inc. (AMEX:QSC) today announced the acquisition of
U.S. rights to Doral(R) (quazepam), a non-narcotic, selective
benzodiazepine receptor agonist that is indicated for the treatment of
insomnia, characterized by difficulty in falling asleep, frequent
nocturnal awakenings, and/or early morning awakenings. Questcor is
acquiring the product from MedPointe Inc. for $2.5 million in cash and
a future milestone payment of $1.5 million. Gross ex-factory sales for
Doral in 2005 were $1.1 million.
"Sleep disturbance and insomnia is a very common side effect of
many, if not most, neurological diseases and disorders such as
Multiple Sclerosis, Epilepsy, Parkinson's disease, and Alzheimer's
disease and is a critical concern of Questcor's targeted physicians.
We believe that Doral will complement our efforts to expand the
prescribing of our lead product, H.P. Acthar(R) Gel (repository
corticotropin injection), and will allow Questcor to significantly
leverage our forty person national neurology sales force," said Jim
Fares, President and CEO of Questcor.
The U.S. market for sleep medicines has seen significant growth
over the past several years and is estimated to have generated over $3
billion in prescription drug sales in 2005. The prescribing by
Questcor's target physicians was estimated at over $100 million in
2005 which was an increase of nearly 30% from 2004. "We believe that
Doral has a number of unique properties that make it an attractive
option for the many neurology patients who suffer from sleep
disturbance. Doral has never been promoted directly to neurologists
and we believe our national sales force will be able to capitalize on
its attractive therapeutic profile," continued Mr. Fares.
Doral will be the second branded prescription product to be
marketed by Questcor's national sales force and further validates
Questcor's strategy to focus on becoming a leading CNS focused
specialty pharmaceutical company. Questcor expects to re-launch Doral
in the third quarter.
Conference Call - Questcor will be hosting a conference call to
discuss the acquisition of Doral (quazepam) as well as its results for
the first quarter of 2006 on Tuesday, May 9, 2006 at 8:30 a.m. Eastern
Time (5:30 a.m. Pacific Time). Please call the following numbers to
participate: (800) 741-6056 (domestic) or (706) 679-3280
(international) and use conference ID number 8213744. Participants are
asked to call the above numbers 5-10 minutes prior to the starting
This call is being webcast by Thomson/CCBN and can be accessed at
Questcor's website at www.questcor.com. The webcast is also being
distributed through the Thomson StreetEvents Network to both
institutional and individual investors. Individual investors can
listen to the call at www.earnings.com, Thomson/CCBN's individual
investor portal, powered by StreetEvents. Institutional investors can
access the call via Thomson's password-protected event management
site, StreetEvents (www.streetevents.com).
A telephonic replay of this call will be available from 12:00 p.m.
Eastern Time on Tuesday, May 9, 2006 through 11:59 p.m. Eastern Time
on Tuesday, May 16, 2006. Please call (800) 642-1687 (domestic) or
(706) 645-9291 (international) and use conference ID number 8213744.
About Questcor - 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 and
Doral(R) (quazepam) that is indicated for the treatment of insomnia,
characterized by difficulty in falling asleep, frequent nocturnal
awakenings, and/or early morning awakenings. For more information,
please visit www.questcor.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 its products, the gross margin achieved from the sale of
its products, Questcor's ability to enforce its product returns
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 potential future
need for additional funding, Questcor's ability to utilize its net
operating loss carry forwards to reduce income taxes on the sale of
its products, 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 year
ended December 31, 2005 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.
CONTACT: Nisola, LLC
Eric Liebler, 908-437-1320
SOURCE: Questcor Pharmaceuticals, Inc.