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Questcor Reports Solid Fourth Quarter Results
Date:3/1/2010

"The modest set of prescriptions for NS in the fourth quarter was an unexpected development at this stage in our efforts to generate sales in this market," added Mr. Cartt.  "NS is a devastating kidney disorder which leads to end-stage renal disease (ESRD).  NS is an on-label indication for Acthar and we are working to generate more clinical data to further support the effectiveness of Acthar in the treatment of this disease."

Sales Reserves—Medicaid, Tricare and VA Adjustments

As required by federal regulations, the Company provides rebates to state Medicaid programs for Acthar dispensed to Medicaid patients.  The Medicaid rebate portion of sales reserves for the fourth quarter of 2009 was $8.4 million or 22% of 2009 fourth quarter gross sales.  While total new commercially paid Acthar prescriptions for the treatment of IS processed through the Company's reimbursement support center increased to 95 in the fourth quarter from 61 in the third quarter, the number of Medicaid-reimbursed IS prescriptions dropped 27% sequentially.  

The Department of Defense (DOD) operates a prescription drug program through its Tricare Management Administration (Tricare).  As a result of uncertainties in an on-going dispute between the pharmaceutical industry and the
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SOURCE Questcor Pharmaceuticals, Inc.
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