Questcor Announces SBIR Grant Funding for Development of Its Novel Neuroprotective Compounds.

Business Editors, Health/Medical Writers

HAYWARD, Calif.--(BUSINESS WIRE)--Nov. 1, 2000

Questcor Pharmaceuticals, Inc. (AMEX:QSC) announced today that the National Institutes of Health (NIH) notified Questcor of the renewal of an SBIR grant for further research on its series of glial excitotoxin release inhibitors (GERI) compounds.

The total NIH grant of $749,000 will allow the completion of pre-clinical work on several potential clinical leads.

These neuroprotective compounds target astroglial cells that are thought to be primarily responsible for brain swelling following stroke or traumatic brain injury. According to the National Stroke Association, stroke is our nation's third leading cause of death, killing nearly 160,000 Americans every year. It is estimated that approximately 730,000 Americans have a new or recurrent stroke annually, resulting in medical costs approaching $30 billion.

The GERI compounds exert a powerful neuroprotective effect by blocking chloride-ion channels to reduce swelling, and by inhibiting excitotoxin release to limit or prevent damage to neurons. This dual effect has been illustrated in in vitro and animal models of total and focal brain ischemia. A number of drug development candidates have been investigated.

"We are excited about the potential of the GERI compounds," said Charles J. Casamento, President, Chairman and CEO of Questcor. "Our results in animal models with a number of GERI compounds have been very encouraging. There is a tremendous need for the development of effective agents in both brain trauma and stroke. We hope that these new agents may limit ischemic injury and substantially enhance survivability while improving quality of life outcomes." Mr. Casamento stated further that "availing ourselves of the opportunity to fund continued development of the GERI compounds, through the mechanism of the NIH grant, is consistent with our current strategy of obtaining outside funding sources for our most promising early stage research programs." Questcor has recently completed agreements with Dainippon and Rigel that allow for funding for the continued development of several novel anti-bacterial and anti-viral research projects.

Questcor Pharmaceuticals, Inc. is a fully integrated specialty pharmaceutical company whose focus is to serve the needs of the acute care and critical care hospital market. The Company's strategy includes the acquisition and marketing of hospital pharmaceutical products, the generation of revenue streams from these products and the continued funding of late stage, acute care and critical care pharmaceutical research and development programs. As part of a strategy to develop its products globally, Questcor has entered into contractual relationships with CSC Pharmaceuticals HandelsGmbH of Vienna, Austria; Crinos Group of Como, Italy; Dainippon Pharmaceutical Co., Ltd., of Osaka, Japan; NutraMax Products, Inc. of Gloucester, MA; Rigel Pharmaceuticals, Inc. of South San Francisco, CA; Shire Pharmaceuticals Group plc of Andover, UK; and Laboratorios Silesia S.A. of Santiago, Chile. Questcor was created as a result of the merger, on November 17, 1999, of RiboGene, Inc. and Cypros Pharmaceutical Corporation.

Note: Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Such statements are subject to certain factors, which may cause the Company's results to differ. Factors that may cause such differences include, but are not limited to, the Company's need for additional funding, uncertainties regarding the company's intellectual property and other research, development, marketing and regulatory risks, and, the ability of the Company to implement its strategy and acquire products and, if acquired, to market them successfully as well as the risks discussed in Questcor's transition report on Form 10-K for the fiscal year ended December 31, 1999, the Risk Factor section of Cypros' Registration Statement on form S-4 (No. 333-87611), and the Company's quarterly reports on form 10-Q ended March 31, 2000 and June 30, 2000 respectively, and other documents filed with the Securities and Exchange Commission. The risk factors and other information contained in these documents should be considered in evaluating Questcor's prospects and future financial performance.