Questcor Expansion Strategy Pays Off For Acthar

In today’s cost-conscious health care environment, Questcor Pharmaceuticals Inc.’s revival of a decades-old product through a repositioning and substantial price hike stands out as an exception to the usual drug lifecycle story. H.P. Acthar Gel – an injectable, gel-based form of adrenocorticotropic hormone, a relative of prednisone – originally was approved in 1954 and achieved a broad label for a wide array of autoimmune and anti-inflammatory uses back before FDA required clinical testing.

The drug was barely even used anymore back when Questcor bought it from Aventis SA in 2001. In 2006, the year before Questcor controversially raised the price of Acthar from $1,650 per vial to more than $23,000 per vial in a repositioning intended to prolong the life of the brand, the drug brought in just $12 million. Flash forward to 2013: Acthar generated sales of $303