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8-K - FORM 8-K - QUESTCOR PHARMACEUTICALS INCd8k.htm
EX-99.1 - PRESS RELEASE - QUESTCOR PHARMACEUTICALS INCdex991.htm
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Exhibit 99.2


2
2
NASDAQ:
QCOR
NASDAQ:
QCOR
April 2011
April 2011


3
Safe Harbor Statement
Note: Except for the historical information contained herein, this press release contains forward-looking statements that have been
made pursuant to the Private Securities Litigation Reform Act of
1995. These statements relate to future events or our future financial
performance. In some cases, you can identify forward-looking statements by terminology such as “believes,”
“continue,”
“could,”
“estimates,”
“expects,”
“growth,”
“may,”
“plans,”
“potential,”
“should,”
“substantial”
or “will”
or the negative of such terms and other
comparable terminology. These statements are only predictions. Actual events or results may differ materially. Factors that could
cause or contribute to such differences include, but are not limited to, the following: Our reliance on Acthar for substantially
all of our
net sales and profits; The complex nature of our manufacturing process and the potential for supply disruptions or other business
disruptions; The lack of patent protection for Acthar; and the possible FDA approval and market introduction of competitive products;
Our ability to generate revenue from sales of Acthar to treat on-label indications associated with NS, and our ability to develop
other
therapeutic uses for Acthar; Research and development risks, including risks associated with Questcor's preliminary work in the area of
nephrotic syndrome and our reliance on third-parties to conduct research and development and the ability of research and
development to generate successful results; Regulatory changes or other policy actions by governmental authorities and other third
parties as recently adopted U.S. healthcare reform legislation is implemented; Our ability to receive high reimbursement levels from
third party payers; An increase in the proportion of our Acthar unit sales comprised of Medicaid-eligible patients and government
entities; Our ability to estimate reserves required for Acthar used by government entities and Medicaid-eligible patients  and the
impact that unforeseen invoicing of historical Medicaid sales may have upon our results; Our ability to operate within an industry that
is highly regulated at both the Federal and state level; Our ability to effectively manage our growth and our reliance on key personnel;
The impact to our business caused by economic conditions; Our ability to protect our proprietary rights; Our ability to maintain
effective controls over financial reporting; The risk of product
liability lawsuits; Unforeseen business interruptions; Volatility in
Questcor's monthly and quarterly Acthar shipments and end-user demand, as well as volatility in our stock price; and Other
risks
discussed
in
Questcor's
annual
report
on
Form
10-K
for
the
year
ended
December
31,
2010
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.
Note: Except for the historical information contained herein, this press release contains forward-looking statements that have been
made pursuant to the Private Securities Litigation Reform Act of
1995. These statements relate to future events or our future financial
performance. In some cases, you can identify forward-looking statements by terminology such as “believes,”
“continue,”
“could,”
“estimates,”
“expects,”
“growth,”
“may,”
“plans,”
“potential,”
“should,”
“substantial”
or “will”
or the negative of such terms and other
comparable terminology. These statements are only predictions. Actual events or results may differ materially. Factors that could
cause or contribute to such differences include, but are not limited to, the following: Our reliance on Acthar for substantially
all of our
net sales and profits; The complex nature of our manufacturing process and the potential for supply disruptions or other business
disruptions; The lack of patent protection for Acthar; and the possible FDA approval and market introduction of competitive products;
Our ability to generate revenue from sales of Acthar to treat on-label indications associated with NS, and our ability to develop
other
therapeutic uses for Acthar; Research and development risks, including risks associated with Questcor's preliminary work in the area of
nephrotic syndrome and our reliance on third-parties to conduct research and development and the ability of research and
development to generate successful results; Regulatory changes or other policy actions by governmental authorities and other third
parties as recently adopted U.S. healthcare reform legislation is implemented; Our ability to receive high reimbursement levels from
third party payers; An increase in the proportion of our Acthar unit sales comprised of Medicaid-eligible patients and government
entities; Our ability to estimate reserves required for Acthar used by government entities and Medicaid-eligible patients  and the
impact that unforeseen invoicing of historical Medicaid sales may have upon our results; Our ability to operate within an industry that
is highly regulated at both the Federal and state level; Our ability to effectively manage our growth and our reliance on key personnel;
The impact to our business caused by economic conditions; Our ability to protect our proprietary rights; Our ability to maintain
effective controls over financial reporting; The risk of product
liability lawsuits; Unforeseen business interruptions; Volatility in
Questcor's monthly and quarterly Acthar shipments and end-user demand, as well as volatility in our stock price; and Other
risks
discussed
in
Questcor's
annual
report
on
Form
10-K
for
the
year
ended
December
31,
2010
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.


4
Questcor
A biopharmaceutical company
whose product helps patients with serious,
difficult-to-treat medical conditions
A biopharmaceutical company
whose product helps patients with serious,
difficult-to-treat medical conditions


Questcor Overview
Flagship Product:
Flagship Product:
Profitable, cash flow positive, $122M in cash, debt-free
Profitable, cash flow positive, $122M in cash, debt-free
19 approved indications
19 approved indications
Key Markets:
Key Markets:
Multiple Sclerosis, Infantile Spasms, Nephrotic Syndrome
Combined market opportunity exceeds $1.5 billion
Multiple Sclerosis, Infantile Spasms, Nephrotic Syndrome
Combined market opportunity exceeds $1.5 billion
Strategy:
Strategy:
Grow Acthar sales in each key market
Grow Acthar sales in each key market
Financials:
Financials:
5


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MS New, Paid Scripts: >500
Up over 115% YOY and 40% sequentially
NS New, Paid Scripts: ~18
IS New, Paid Scripts: ~88 (in the normal range)
First quarter vials shipped: 2,010
Medicaid reserves continue to appear adequate
884,300 shares repurchased
MS New, Paid Scripts: >500
Up over 115% YOY and 40% sequentially
NS New, Paid Scripts: ~18
IS New, Paid Scripts: ~88 (in the normal range)
First quarter vials shipped: 2,010
Medicaid reserves continue to appear adequate
884,300 shares repurchased
Q1 2011 Preliminary Metrics


History of Acthar
1952
First
Approved
1968-1973
DESI Review
Label Expands
1950
1950
1978
MS Indication Added
2000
2000
2001
Questcor Acquires
Acthar
2010
Label Modernized
19 Indications
2007
Questcor Changes
Strategy
2010
2010
7


Significant Barriers to Entry
8


9
Sell More Acthar
Multiple Sclerosis (MS)
Multiple Sclerosis (MS)
Infantile Spasms (IS)
Infantile Spasms (IS)
Nephrotic Syndrome (NS)
Nephrotic Syndrome (NS)


Large Market Opportunity
~$66M
~$66M
~$41M
~$41M
~$3M
~$3M
~$5M
~$5M
$1B+
MS Sales
IS Sales
NS Sales
$500M to $2B+
$100M
$1B+
Other Sales
2010 Net
Sales**
Market*
*Represents estimated net sales market opportunity based on internal company estimates
** Represents approximate 2010 Net Sales by therapeutic area based on internal company estimates
10


Acthar and MS
Neurodegenerative
disorder
Acute treatment for
relapses
Dosing period is 1-2
weeks*
$40K-$50K/Rx
Inadequate
Inadequate
Response to
Response to
Steroids
Steroids
Poor
Poor
Venous
Venous
Access
Access
Problematic
Problematic
Steroid Side
Steroid Side
Effects 
Effects 
Acthar
Acthar
when
when
“Steroids are
“Steroids are
not suitable”
not suitable”
*Based on prescription data
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MS
Sales
-
Record
of
Consistent
Growth
New  Paid Rxs
New  Paid Rxs
Notes: Historical trend information is not necessarily indicative of future results.  Chart includes "Related Conditions" -
diagnoses that are
either alternative descriptions of the condition or are closely related to the medical condition which is the focus of the table.
77
15
30
38
Numbers in the  bars show the number of sales people
making calls at the end of the quarter.
8
>
Q1 '08
Q2 '08
Q3 '08
Q4 '08
Q1 '09
Q2 '09
Q3 '09
Q4 '09
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '10


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Multiple Sclerosis
$500M to $2B+
Potential Market
$500M to $2B+
$500M to $2B+
Potential Market
Potential Market
*Based on internal company estimates.


14
Q1-2011 results
Q1-11 new paid Rxs up >115% vs. Q1-10
MS sales well over 50% of QCOR sales
Over $75M annualized run-rate
Growing number of Acthar prescribers
But only ~400 out of 8,000 neurologists
Speakers bureau growing
Q1-2011 results
Q1-11 new paid Rxs up >115% vs. Q1-10
MS sales well over 50% of QCOR sales
Over $75M annualized run-rate
Growing number of Acthar prescribers
But only ~400 out of 8,000 neurologists
Speakers bureau growing
MS Trends


15
MS Sales Calls vs. Paid New Rxs
*MS call data approximate
MS Calls
MS Calls
MS Rxs
MS Rxs
0
20
40
60
80
100
120
140
160
180
200
0
1000
2000
3000
4000
5000
6000


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Doubled sales force:  38 to 77 sales reps
Newly expanded sales force began call activity Nov 1
Significant increase in calls on MS-treating neurologists
Also targeting certain child neurologists for IS sales calls
MS paid Rxs increasing since November
December set new record
February set new record 
March up >50% over February
Doubled sales force:  38 to 77 sales reps
Newly expanded sales force began call activity Nov 1
Significant increase in calls on MS-treating neurologists
Also targeting certain child neurologists for IS sales calls
MS paid Rxs increasing since November
December set new record
February set new record 
March up >50% over February
Sales Force Expansion


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Devastating, refractory form of childhood epilepsy
Very poor developmental outcome if inadequately treated
Not responsive to standard anti-epileptic drugs
Ultra-rare orphan disorder
1,500 to 2,000 patients annually
Typically occurs in children less than 2 years old
Characterized by
“spasms”
--
a specific type of seizure
“hypsarrhythmia”
--
abnormal EEG pattern
Devastating, refractory form of childhood epilepsy
Very poor developmental outcome if inadequately treated
Not responsive to standard anti-epileptic drugs
Ultra-rare orphan disorder
1,500 to 2,000 patients annually
Typically occurs in children less than 2 years old
Characterized by
“spasms”
--
a specific type of seizure
“hypsarrhythmia”
--
abnormal EEG pattern
Infantile Spasms


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Used by over half of child neurologists
FDA approval 10/15/10
7 year orphan exclusivity for IS indication
Crisis therapy
Treatment for 2-4 weeks*
In a randomized, single-blinded, controlled study, 87% of
patients achieved overall response (no spasms and no
hypsarrhythmia) at two weeks versus 29% on prednisone
$100K-$125K/Rx
About half of patients receive drug for free
Used by over half of child neurologists
FDA approval 10/15/10
7 year orphan exclusivity for IS indication
Crisis therapy
Treatment for 2-4 weeks*
In a randomized, single-blinded, controlled study, 87% of
patients achieved overall response (no spasms and no
hypsarrhythmia) at two weeks versus 29% on prednisone
$100K-$125K/Rx
About half of patients receive drug for free
Acthar and IS
*Based on prescription data


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Significant variability in quarterly prescriptions
Q1-2011 sales within historic range
Promotion effort began 11/1/10
Potential to increase IS revenue
Acthar currently used to treat 30-50% of IS patients
Significant variability in quarterly prescriptions
Q1-2011 sales within historic range
Promotion effort began 11/1/10
Potential to increase IS revenue
Acthar currently used to treat 30-50% of IS patients
IS Sales Plan


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Characterized by excessive spilling of protein from the
kidney into the urine (proteinuria)
Can result in end-stage renal disease (ESRD), dialysis,
transplant
Significant unmet need
Few treatment options
Characterized by excessive spilling of protein from the
kidney into the urine (proteinuria)
Can result in end-stage renal disease (ESRD), dialysis,
transplant
Significant unmet need
Few treatment options
Nephrotic Syndrome


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FDA-approved on label indication for reduction of
proteinuria in:
Idiopathic types of nephrotic syndrome
Idiopathic membranous nephropathy
Focal segmental glomerular sclerosis (FSGS)
IgA nephropathy
Lupus nephritis
Treatment for 4-6 months*
$150K-250K/Rx
FDA-approved on label indication for reduction of
proteinuria in:
Idiopathic types of nephrotic syndrome
Idiopathic membranous nephropathy
Focal segmental glomerular sclerosis (FSGS)
IgA nephropathy
Lupus nephritis
Treatment for 4-6 months*
$150K-250K/Rx
Acthar and NS
*Based on prescription data


22
Available November 2010
Case series showed response from Acthar in refractory
idiopathic membranous nephropathy (on-label)
9 of 11 patients met response criteria
Positive signal received in diabetic nephropathy
investigator initiated trial (not on-label)
9 of 15 patients on Acthar met response criteria and none have
required dialysis
Available November 2010
Case series showed response from Acthar in refractory
idiopathic membranous nephropathy (on-label)
9 of 11 patients met response criteria
Positive signal received in diabetic nephropathy
investigator initiated trial (not on-label)
9 of 15 patients on Acthar met response criteria and none have
required dialysis
Proof of Concept Data


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Dose response trial for idiopathic membranous
nephropathy (on-label)
$5-7M multi-center trial, n~100
Reduction of proteinuria is endpoint
Presently designing a well controlled study in
collaboration with FDA for diabetic nephropathy (off-
label)
Proof-of-concept study with different dosing regimens and a
placebo
If successful, next step will be a larger Phase II trial
Dose response trial for idiopathic membranous
nephropathy (on-label)
$5-7M multi-center trial, n~100
Reduction of proteinuria is endpoint
Presently designing a well controlled study in
collaboration with FDA for diabetic nephropathy (off-
label)
Proof-of-concept study with different dosing regimens and a
placebo
If successful, next step will be a larger Phase II trial
R&D Effort in NS


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Hired 5 reps to sell Acthar to nephrologists
Initiated sales efforts in early March 2011
Develop selling process and generate sales
Expand selling effort if sales increase
Peer review publication of case series in March 2011
Drug Design, Development and Therapy
Q1 2011 NS Scripts: ~18
14 different prescribers
Hired 5 reps to sell Acthar to nephrologists
Initiated sales efforts in early March 2011
Develop selling process and generate sales
Expand selling effort if sales increase
Peer review publication of case series in March 2011
Drug Design, Development and Therapy
Q1 2011 NS Scripts: ~18
14 different prescribers
NS Business Plan


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MS -
Build on sales momentum,
lots of market headroom
IS -
Incremental market
share growth 
NS -
Establish Acthar
as a therapeutic alternative
in this sizeable market
MS -
Build on sales momentum,
lots of market headroom
IS -
Incremental market
share growth 
NS -
Establish Acthar
as a therapeutic alternative
in this sizeable market
Immediate
Acthar
Growth
Opportunities
Yellow bars: Estimated net sales market opportunity based on internal company estimates
Blue bars: Approximate 2010 Net Sales by therapeutic area based on internal company estimates


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Financials
Profitable
Profitable
Debt Free
Debt Free
Cash Flow Positive
Cash Flow Positive


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2010 Financial Results
Record Sales (up 30%) and Solid Earnings (EPS up 35%)
Record Sales (up 30%) and Solid Earnings (EPS up 35%)
Net Sales ($M)
Net Sales ($M)
Gross Margin
Gross Margin
Operating Inc ($M)
Operating Inc ($M)
EPS
EPS
$115.1
$115.1
93%
93%
$53.8
$53.8
$0.54
$0.54
$88.3
$88.3
92%
92%
$41.2
$41.2
$0.40
$0.40
2010
2010
2009
2009


Questcor is Cash Flow Positive
*After return of $78 million of cash to shareholders through
share repurchases.            
Cash / ST Investment
Cash / ST Investment
Accounts Receivable
Accounts Receivable
$122M*
$122M*
$12M
$12M
3/31/11
3/31/11
28
Debt-free balance sheet
Debt-free balance sheet


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Share Repurchases: 15 Million Shares
2.2 Million Preferred shares repurchased
13.3 Million Common shares repurchased
$78 million returned to shareholders in stock
buybacks
61.7 million shares currently outstanding
4.3 million shares remain on buyback authorization
2.2 Million Preferred shares repurchased
13.3 Million Common shares repurchased
$78 million returned to shareholders in stock
buybacks
61.7 million shares currently outstanding
4.3 million shares remain on buyback authorization
Repurchases significantly improve EPS
Repurchases significantly improve EPS


Expanded sales force to pursue MS/IS
Dedicated pilot NS sales team started March 2011
Develop other markets for Acthar
Acthar is its own pipeline with 15 other on-label
and many possible other therapeutic uses
Further define and develop the unique
characteristics of Acthar
No business development efforts                         
planned
Expanded sales force to pursue MS/IS
Dedicated pilot NS sales team started March 2011
Develop other markets for Acthar
Acthar is its own pipeline with 15 other on-label
and many possible other therapeutic uses
Further define and develop the unique
characteristics of Acthar
No business development efforts                         
planned
Go Forward Plan -
Sell More Acthar
30


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Questcor is streamlined, focused &
profitable
Acthar has sustainable competitive
advantages
Focus on substantial growth in MS sales
Recent IS approval/label modernization
Possible upside with NS
Market sizes have good growth potential
Cash flow positive/no debt
Questcor is streamlined, focused &
profitable
Acthar has sustainable competitive
advantages
Focus on substantial growth in MS sales
Recent IS approval/label modernization
Possible upside with NS
Market sizes have good growth potential
Cash flow positive/no debt
Investment Highlights


32
NASDAQ:
QCOR
NASDAQ:
QCOR
April 2011
April 2011
32


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