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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 9, 2011

QUESTCOR PHARMACEUTICALS, INC.

(Exact Name of Registrant as Specified in Charter)


California	001-14758	33-0476164
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1300 Kellogg Drive, Suite D, Anaheim, California		92807
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (714) 786-4200

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01.

Regulation FD Disclosure.

Commencing on August 9, 2011, Questcor Pharmaceuticals, Inc. (the “Company”) will utilize an updated presentation for investor relations purposes. The presentation is furnished under this Item 7.01 pursuant to Regulation FD and is included as Exhibit 99.1 to this Current Report on Form 8-K. The presentation will also be made available on the Company’s website at www.questcor.com.

In accordance with General Instruction B.2. of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits.


Exhibit Number		*Description*

99.1		Questcor Pharmaceuticals, Inc. August 2011 Investor Presentation.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: August 9, 2011	QUESTCOR PHARMACEUTICALS, INC.

	By:	/s/ Michael Mulroy
		Michael Mulroy, Chief Financial Officer & General Counsel

EXHIBIT INDEX


Exhibit No.		Description

99.1		Questcor Pharmaceuticals, Inc. August 2011 Investor Presentation.

Investor Presentation

NASDAQ:

QCOR

NASDAQ:

QCOR

August 2011

Exhibit 99.1

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; Reductions in vials used

per prescription resulting from changes in treatment regimens by physicians or patient compliance with physician

recommendations; 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 including SLE; Research and development risks, including risks

associated with Questcor's work in the area of nephrotic syndrome and potential work in the area of SLE, 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 in connection with

U.S. health care reform or efforts to reduce federal and state government deficits; 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

prescriptions 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, including the expansion of our NS selling effort, 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.

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:

•

Profitable, cash flow positive, $142M* in cash, debt-free

•

Profitable, cash flow positive, $142M* in cash, debt-free

•

19 approved indications

•

19 approved indications

Key Markets:

•

Multiple Sclerosis, Nephrotic Syndrome, Infantile Spasms

•

Combined market opportunity exceeds $1.5 billion

•

Multiple Sclerosis, Nephrotic Syndrome, Infantile Spasms

•

Combined market opportunity exceeds $1.5 billion

Strategy:

•

Grow Acthar sales in each key market

•

Develop on-label Lupus market for Acthar

•

Grow Acthar sales in each key market

•

Develop on-label Lupus market for Acthar

Financials:

* As of 7/29/11

History of Acthar

1952

First

Approved

1950

1978

MS Indication Added

2000

2001

Questcor Acquires

Acthar

2010

Label Modernized

19 Indications

2007

Questcor Changes

Strategy

2010

Significant Barriers to Entry

QCOR Strategy –

Sell More Acthar

Multiple Sclerosis (MS)

Nephrotic Syndrome (NS)

Infantile Spasms (IS)

Systemic

Lupus

Erythematosus

Acthar and MS

•

Neurodegenerative

disorder

•

Acute treatment for

relapses

•

Treatment for 1-2

weeks*

•

$40K-$50K/Rx

Inadequate

Response to

Steroids

Poor

Venous

Access

Problematic

Steroid Side

Effects

Acthar

when

“Steroids are

not suitable”

*Based on prescriptions written

Sales

Record

Consistent

Growth

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 chart.

Yellow numbers in the bars show the number of MS sales

people making calls at the end of the quarter.

Monthly MS Sales Are Promotion Sensitive

•

Doubled sales force: 38 to 77 sales reps Nov 2010

•

Q2-2011 results

–

Q2-11

new

paid

Rxs

147%

vs.

Q2-10

–

MS about 60% of QCOR net sales*

•

Estimated $110M annualized run-rate*

–

About 400 prescribers in Q2

–

June was a record month

•

July trends remain solid

–

Q2 sales level continuing into Q3

•

Doubled sales force: 38 to 77 sales reps Nov 2010

•

Q2-2011 results

–

Q2-11

new

paid

Rxs

147%

vs.

Q2-10

–

MS about 60% of QCOR net sales*

•

Estimated $110M annualized run-rate*

–

About 400 prescribers in Q2

–

June was a record month

•

July trends remain solid

–

Q2 sales level continuing into Q3

MS Trends

*based on Company estimates

•

Characterized by excessive spilling of protein from the

kidneys into the urine (proteinuria)

•

Can result in end-stage renal disease (ESRD), dialysis,

transplant

•

Significant unmet need

–

Few treatment options

•

Treatment for 4-6 months*

•

$150K-250K/Rx

•

Characterized by excessive spilling of protein from the

kidneys into the urine (proteinuria)

•

Can result in end-stage renal disease (ESRD), dialysis,

transplant

•

Significant unmet need

–

Few treatment options

•

Treatment for 4-6 months*

•

$150K-250K/Rx

Acthar and Nephrotic Syndrome (NS)

*Based on prescriptions written

NS Sales –

Off to a Good Start

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 chart.

Yellow numbers in the bars show the number of NS sales

people making calls at the end of the quarter.

NS Market Size

•

Hired 5 reps to sell Acthar to nephrologists

–

Initiated sales efforts in early March 2011

–

Q1 2011 NS Scripts: 18

•

14 different prescribers

–

Q2 2011 NS Scripts: 45

•

37 different prescribers

•

4-6 month course of therapy creates future vial demand

•

Expanding the NS selling effort

–

Planned sales calls to increase in Q4 by 7X over Q2

–

Disruption to sales level in Q3 possible

•

Hired 5 reps to sell Acthar to nephrologists

–

Initiated sales efforts in early March 2011

–

Q1 2011 NS Scripts: 18

•

14 different prescribers

–

Q2 2011 NS Scripts: 45

•

37 different prescribers

•

4-6 month course of therapy creates future vial demand

•

Expanding the NS selling effort

–

Planned sales calls to increase in Q4 by 7X over Q2

–

Disruption to sales level in Q3 possible

NS Sales

•

Treatment Resistant Idiopathic Membranous

Nephropathy

•

Dose response trial

–

Randomized, double blinded 3 arm study with 2 different dosage

regimens of Acthar and placebo

–

n=84 (approximate), 35 centers (approximate)

–

Endpoint is reduction of proteinuria

•

Trial milestones

–

First patient dosed in Q3

–

“First look”

data available late 2012

–

Final reporting mid 2013

•

Treatment Resistant Idiopathic Membranous

Nephropathy

•

Dose response trial

–

Randomized, double blinded 3 arm study with 2 different dosage

regimens of Acthar and placebo

–

n=84 (approximate), 35 centers (approximate)

–

Endpoint is reduction of proteinuria

•

Trial milestones

–

First patient dosed in Q3

–

“First look”

data available late 2012

–

Final reporting mid 2013

Phase

Company

Sponsored

Study

•

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

•

FDA approval 10/15/10

•

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

•

FDA approval 10/15/10

•

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 prescriptions written

•

Targeting select institutions

–

Promotion effort being narrowed as market is maturing

–

Creates selling time for Acthar reps to target NS

•

Significant variability in quarterly Rxs

•

Q2-2011 sales within historic range

–

Acthar currently used to treat 40-50% of IS patients

•

Targeting select institutions

–

Promotion effort being narrowed as market is maturing

–

Creates selling time for Acthar reps to target NS

•

Significant variability in quarterly Rxs

•

Q2-2011 sales within historic range

–

Acthar currently used to treat 40-50% of IS patients

IS Sales

*Represents estimated net sales market opportunity based on internal company estimates

** Represents approximately 4 times Q1 11 net sales by therapeutic area based on internal company estimates

•

Build on sales

momentum,

good market

headroom

•

Market size-

$500M+

•

Good start with

5 reps

•

Significantly

expanding

selling effort

•

Market size-

$1B+

•

Targeted sales

strategy

•

Market size-

$100M

Immediate

Acthar

Growth

Opportunities

•

Specialty Sales Force

–

Main focus on MS (~80%), 15% on NS, 5% on IS

–

77 representatives, 13 regional managers, one national director

•

Nephrology Sales Force

–

Focus 100% on Nephrotic Syndrome

–

28 representatives, 4 regional managers, one national director

•

Combined Forces will be calling on

–

>4,000 neurologists

–

>3,000 nephrologists

–

about 100 key children’s hospitals

•

Specialty Sales Force

–

Main focus on MS (~80%), 15% on NS, 5% on IS

–

77 representatives, 13 regional managers, one national director

•

Nephrology Sales Force

–

Focus 100% on Nephrotic Syndrome

–

28 representatives, 4 regional managers, one national director

•

Combined Forces will be calling on

–

>4,000 neurologists

–

>3,000 nephrologists

–

about 100 key children’s hospitals

Total Acthar Sales Force

•

High unmet need

•

Serious health risk if unsuccessfully treated

•

Difficult to treat

•

Multiple on-label indications for Acthar

–

Exacerbations

–

Maintenance therapy

–

Lupus nephritis

•

Large patient population

•

High unmet need

•

Serious health risk if unsuccessfully treated

•

Difficult to treat

•

Multiple on-label indications for Acthar

–

Exacerbations

–

Maintenance therapy

–

Lupus nephritis

•

Large patient population

Systemic Lupus Erythematosus (Lupus)

Financials

Profitable

Debt Free

Cash Flow Positive

Q2-2011 Financial Results

Net Sales ($M)

Gross Margin

Operating Income ($M)

Fully Diluted, GAAP EPS

$46.0

94%

$20.4

$0.21

$28.3

93%

$14.3

$0.14

Q2-2011

Q2-2010

Record Sales (up 62%) and Solid Earnings (EPS up 50%)

•

Second quarter vials shipped: 2,430

•

Medicaid reserves continue to appear adequate

•

No shares repurchased

Questcor is Cash Flow Positive

*After return of $78 million of cash to shareholders through

share repurchases.

Cash / ST Investments

Accounts Receivable

$142M*

$28M

7/29/11

Debt-free balance sheet

Share Repurchases: 15 Million Shares

•

2.2 Million Preferred share buyback

•

13.2 Common share buyback

•

$78 million returned to shareholders in stock

buybacks

•

62.3 million shares currently outstanding

•

4.3 million shares remain on buyback authorization

•

2.2 Million Preferred share buyback

•

13.2 Common share buyback

•

$78 million returned to shareholders in stock

buybacks

•

62.3 million shares currently outstanding

•

4.3 million shares remain on buyback authorization

Repurchases significantly improve EPS

•

Sustain effort and momentum with MS

•

Expand NS selling effort

•

Maintain and gradually grow IS sales

•

Explore Systemic Lupus Erythematosus (Lupus) as next

vertical market

•

Develop other markets for Acthar

•

No business development efforts planned

•

Sustain effort and momentum with MS

•

Expand NS selling effort

•

Maintain and gradually grow IS sales

•

Explore Systemic Lupus Erythematosus (Lupus) as next

vertical market

•

Develop other markets for Acthar

•

No business development efforts planned

Go Forward Plan -

Sell More Acthar

–

Acthar is its own pipeline with many other on-label

and many possible other therapeutic uses

–

Further define and develop the unique

characteristics of Acthar

Investment Highlights

Questcor has good sales momentum

Acthar has sustainable competitive advantages

Focus on substantial growth in MS and NS

New

vertical

market

–

Lupus

Market sizes have good growth potential

Solid financial performance and balance sheet

NASDAQ:

QCOR

NASDAQ:

QCOR

August 2011