Questcor Announces the Acquisition of Doral(R) (quazepam); Provides Second Product for National Neurology Sales Force
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.
Edgemont Capital Partners served as exclusive financial advisor to Questcor Pharmaceuticals, Inc.
At Edgemont Capital Partners
David K. Blume, Managing Director
Phone: 212-867-8935 Fax: 212-214-0911
Jeff B. Swearingen, Principal
Phone: 212-867-8935 Fax: 212-937-3816