Questcor Pharmaceuticals acquires rights from Novartis to develop Synacthen

Acquisition of the rights, which is still subject to certain closing conditions, will enable the firm to develop Synacthen and Synacthen Depot in the US as well as certain other nations outside the country.

As per the terms of the acquisition agreement, Novartis will receive $60.0m as upfront payment from Questcor in addition to payments related to milestone and royalties based on net sales in the US.

Questcor will make additional payments of at least $75.0m in the aggregate over the next several years, and upon FDA approval of Synacthen, the company will pursue commercialization of the product in the US.

Commenting on acquiring the rights, Questcor chief scientific officer Pharm.D PhD David Young said the transaction will help understand biological activity of melanocortin receptor agonists and its use in the treatment of serious and challenging autoimmune and inflammatory disorders.

"We intend to develop and seek FDA approval for Synacthen and are committed to developing this product not only in conditions different than Acthar but also in conditions where Synacthen would potentially provide a clinical benefit over Acthar," Young added.

The products have not been developed or approved for US patients, although they are available in more than 40 countries for multiple indications and for certain autoimmune and inflammatory conditions outside the US.

Synacthen (tetracosactide) is a synthetic 24 amino acid melanocortin receptor agonist, whereas Synacthen Depot is a depot formulation of Synacthen.

Questcor president and CEO Don Bailey said the firm anticipates establishing a base of operations in Europe to manage and optimize the world-wide Synacthen brand.