Questcor Pharma pays $60 million upfront to Novartis for rights to Synacthen

USA-based Questcor Pharmaceuticals (Nasdaq: QCOR) says it has acquired rights to develop Synacthen (tetracosactide) and Synacthen Depot in the USA from Swiss drug major Novartis (NOVN: VX). Subject to certain closing conditions, Questcor has also acquired rights to Synacthen and Synacthen Depot in certain countries outside the USA.

Under the terms of the transaction accord, Questcor has paid Novartis an upfront 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 Food and Drug Administration approval. Upon FDA clearance of Synacthen in the USA, Questcor will pay Novartis another milestone and royalties based on net sales in the USA.

Available in more than 40 countries for multiple indications, Synacthen is a synthetic 24 amino acid melanocortin receptor agonist. The products are approved outside the USA for certain autoimmune and inflammatory conditions, but have never been developed or approved for patients in the USA.