Questcor Pharmaceuticals Provides Update Regarding Medicaid Rebate Position for Acthar

Questcor Pharmaceuticals QCOR is providing the following update regarding its Medicaid rebate position with respect to the Company's primary product, H.P. Acthar Gel (repository corticotropin injection) ("Acthar"): As previously disclosed, we currently provide Acthar to Medicaid participants and pay mandatory rebates to state Medicaid programs on the Acthar provided to those patients. Currently, the rebate amount is approximately 100% of the amount we charge our distributor for Acthar. The government has informed the Company that Acthar is eligible for a lower Medicaid rebate amount. Therefore, the Company is in the process of taking the necessary steps to effect this change. We estimate that it will take approximately 3 - 6 months to implement this change and that the new rebate may become 23.1%. If we ultimately implement this change in the Medicaid rebate amount for Acthar, such change could have a materially positive impact on our financial results.