Questcor Product Revenues More Than Double in Third Quarter; 125% Product Revenue Growth for Q3 2001 and 85% product Revenue Growth for the First Nine Months.

Business Editors & Health/Medical Writers

UNION CITY, Calif.--(BW HealthWire)--Nov. 5, 2001

Questcor Pharmaceuticals, Inc. (AMEX: QSC) reports financial results for the third quarter and nine months ended September 30, 2001.

Questcor is a specialty pharmaceutical company that serves the needs of the acute care and critical care hospital markets.

Highlights from the quarter include:

- In July, the Company announced the acquisition of HP Acthar(R) Gel from
Aventis Pharmaceuticals, Inc. HP Acthar(R) Gel has been used in the treatment
of infantile spasm, commonly referred to as "West Syndrome". HP Acthar(R) Gel
had previously been in very limited distribution.

- In July, the option to acquire an exclusive license for the North American
marketing rights to Emitasol(R) held by Shire Pharmaceuticals Group plc expired
allowing the Company to fully retain control of the development and marketing
of the product in North America.

- In July, the Company announced that Emitasol(R) received marketing approval,
under the trade name Pramidin(R), in Poland and the Czech Republic.

- In August, the Company received $4.9 million in new investments from
Sigma-Tau Finance Holding S.A. and affiliates.

- In September, the Company announced the reintroduction of HP Acthar(R) Gel
and the general availability of the product through normal pharmacy
distribution channels.

Quarter and Nine Months Ended September 30, 2001 Financial Results

During the quarter ended September 30, 2001 product revenue increased 125% to $1,258,000 from $559,000 over the comparable quarter ended September 30, 2000. The increase was due in part to higher sales of existing products (Ethamolin(R), Glofil(TM)-125 and Inulin) and the introduction of HP Acthar(R) Gel in September 2001. Total revenues of $1,321,000 for the quarter ended September 30, 2001 were 27% lower than the $1,809,000 reported in the comparable prior year quarter, principally due to a one-time technology fee of $1,250,000 received last year in the quarter ended September 30, 2000 for the sale of our antiviral research to Rigel Pharmaceuticals, Inc. During the third quarter ended September 30, 2001, the Company incurred a net loss of $2,261,000 (or $0.07 per share) compared with a loss of $1,966,000 (or $0.08 per share) for the quarter ended September 30, 2000.

"The Company has continued the trend of increasing the revenue from product sales each quarter this year. Concurrent with the increase in product sales, we have reduced the net loss by 44% to $6.1 million from $10.1 million and the operating cash uses by 58% to $4.6 million from $11.1 million, for the first nine months of 2001 as compared to the first nine months of 2000," said Charles J. Casamento, Chairman, President and CEO of Questcor. "We are extremely pleased with the results for this quarter. Our goals for the year are simple, sell more products and spend less money. In the third quarter, the results show that we met our goals."

During the nine months ended September 30, 2001 product revenue increased 85% to $2,930,000 from $1,581,000 over the comparable period ended September 30, 2000. Total revenues of $3,370,000 for the nine months ended September 30, 2001 increased 10% from $3,050,000 in the comparable period in the prior year. Operating cash uses were also reduced by 58% to $4,635,000 for the first nine months of 2001 from $11,076,000 for the nine months ended September 30, 2000.

Outlook for the remainder of 2001 and for 2002

Mr. Casamento also stated: "Given the strong initial response from our reintroduction of Acthar and the increase in revenues from our other products, revenues may exceed $5 million for the year ended December 31, 2001, although there is no assurance that this level will be reached. Assuming these trends continue, total revenues may exceed $12 million in 2002 and assuming no new business initiatives or unexpected cash needs, the Company could be cash-flow breakeven by late 2002; however, there can be no assurance that these projections will be met."

About Questcor Pharmaceuticals

Questcor Pharmaceuticals, Inc. is a fully integrated specialty pharmaceutical company that serves the needs of the acute care and critical care hospital market with its proprietary products including Glofil(TM)-125 and Inulin for measuring renal GFR, Ethamolin(R)for sclerotherapy, HP Acthar(R)Gel to treat a seizure complex, referred to as West Syndrome or infantile spasm, and Pramidin(R)for various gastrointestinal disorders. Questcor's late stage pipeline products are being developed to treat delayed onset emesis (nausea and vomiting), congenital lactic acidosis (CLA), and various central nervous system disorders. As part of a strategy to develop its products globally, Questcor has entered into over 20 contractual relationships with public and private companies including: Ahn-Gook Pharmaceuticals, of Korea; Aventis Pharmaceuticals, Inc. of Bridgewater, NJ; CSC Pharmaceuticals Handels GmbH of Vienna, Austria; Crinos Group of Como, Italy; Dainippon Pharmaceutical Co., Ltd., of Osaka, Japan; Rigel, Inc. of South San Francisco, CA; Sigma-Tau Finanziaria S.p.A. in Rome, Italy; and Tularik, Inc. of South San Francisco, CA.

Table to follow on next page.

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 ability to accurately forecast the demand for each of their products, the gross margins to be achieved from the sale of those products and the expenses and other cash needs for the upcoming periods, the Company's ability to obtain finished goods from its contract manufacturers on a timely basis, 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 report on Form 10-K/A for the calendar year ended December 31, 2000 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.

                    Questcor Pharmaceuticals, Inc.
                  Selected Balance Sheet Information
                            (In thousands)


                                        September 30,     December 31,
                                           2001              2000
                                         (unaudited)       (audited)

Cash, cash equivalents and
 short-term investments
 (including compensating balance of
  $5 million)                                  $9,707           $8,151
Working capital                                 3,050            1,201
Total assets                                   15,358           14,969
Long-term obligations                             228              548
Preferred stock, subject to redemption          5,081            5,081
Stockholders' equity                            1,327              927

                    Questcor Pharmaceuticals, Inc.
                       Statements of Operations
                 (In thousands, except per share data)
                              (unaudited)

                       Three Months Ended           Nine Months Ended
                     September      September     September  September
                         30,           30,            30,         30,
                        2001          2000           2001        2000

Revenues:
 Net product sales      $1,258         $559          $2,930     $1,581
 Technology revenue         --        1,250              90      1,250
 Contract research and
  grant revenue             59           --             341        207
 Royalty revenue             4           --               9         12
Total revenues           1,321        1,809           3,370      3,050
Operating costs and
expenses:
 Cost of product sales     369          546           1,008      1,592
 Sales and marketing       738          468           2,216      1,639
 General and
 administrative          1,293        1,490           3,150      4,426
 Research and
  development              639          639           2,176      4,609
 Depreciation and
  amortization             547          949           1,659      2,042
  Total operating costs
   and expenses          3,586        4,092          10,209     14,308
Loss from operations    (2,265)      (2,283)         (6,839)   (11,258)
Interest and other income
 (expense), net            (34)          37              18        102
Rental income, net          38          280             690        192
Net loss               $(2,261)     $(1,966)        $(6,131)  $(10,964)

Net loss per common share
Basic and diluted       $(0.07)      $(0.08)         $(0.21)    $(0.44)
Weighted average shares
 of common stock
  outstanding           34,566       24,771          29,438     24,705