Questcor Pharmaceuticals (QCOR) acquired rights to develop Synacthen from Novartis (NVS)

The Anaheim, California-based Questcor Pharmaceuticals  (NASDAQ: QCOR) said it has acquired rights to develop Synacthen in the U.S. in a move to strengthen its presence in inflammatory and autoimmune disorders.

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Under the terms of the agreements, Questcor has paid Novartis (NYSE: NVS : 72.26, -0.31) an upfront consideration of $60.0 million. Questcor will make additional payments of at least $75.0 million in the aggregate over the next several years, as well as potential milestone payments prior to FDA approval.

Upon FDA approval of Synacthen in the U.S., Questcor said it would pay Novartis another milestone and royalties based on net sales in the U.S.

"This key acquisition provides an opportunity to initiate our presence in more than three dozen international markets, giving us an opportunity to reinvigorate Synacthen in these markets and providing us a platform for potential international growth," commented Questcor CEO Don Bailey.

Synacthen (tetracosactide) is a synthetic 24 amino acid melanocortin receptor agonist and Synacthen Depot is a depot formulation of Synacthen. Synacthen and Synacthen Depot are not approved in the United States.

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The stock, which has been trading in the 52-week range of $17.25 to $58.91, ended at $36.71 on Monday.

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