Questcor Revenues Exceed $11 Million for the First Nine Months of 2002.

Business Editors/Medical Writers

UNION CITY, Calif.--(BUSINESS WIRE)--Nov. 7, 2002

Questcor Pharmaceuticals, Inc. (AMEX:QSC) today reports financial results for the quarter ended September 30, 2002. Questcor is an integrated specialty pharmaceutical company focused on the acquisition and marketing of acute care and critical care hospital/specialty and related healthcare products.

Quarter Ended September 30, 2002, Financial Results

During the third quarter of 2002, Questcor reported total revenues of $3,848,000, an increase of 191% over total revenues of $1,321,000 for the third quarter of 2001. Net product sales for the third quarter were $3,772,000, a 200% increase over net product sales of $1,258,000 for the third quarter of last year. The net loss of $995,000 and the net loss per share of $0.03 for the third quarter of 2002, represented a decrease in net loss of 56% as compared to a net loss of $2,261,000 and $0.07 per share for the same period last year.

Effective June 24, 2002, the Company increased its list price for Acthar(R) and Ethamolin(R). From the date of the notification of the price increase through June 30, 2002, Questcor received $3,231,000 of Acthar(R) and Ethamolin(R) orders, of which $777,000 had shipped prior to June 30, 2002. The remaining orders of approximately $2,454,000 were shipped in the early part of July 2002 and recognized as revenue in the third quarter of 2002. The Company believes the magnitude of these orders may adversely impact the sales of Ethamolin(R) in the near term.

Nine Months Ended September 30, 2002, Financial Results

For the nine months ended September 30, 2002, Questcor reported total revenues of $11,443,000, an increase of 240% over total revenues of $3,370,000 for the same period last year. Net product sales for the nine months ended September 30, 2002 were $10,885,000, a 272% increase over net product sales of $2,930,000 for the same period last year. The net loss of $2,430,000 and the net loss per share of $0.06 for the nine months ended September 30, 2002 represented a decrease in net loss of 60% as compared to a net loss of $6,131,000 and $0.21 per share over the same period last year.

Cash burn for the three months and the nine months ended September 30, 2002 and net cash flows used in operating activities for the nine months ended September 30, 2002

Questcor currently uses cash earnings/(burn) and net cash flows used in operating activities as a measure of its performance. Cash earnings/(burn) is defined as net loss excluding certain non-cash charges (depreciation and amortization, non-cash amortization of deemed discount on convertible debentures and non-cash stock based compensation). After deducting these non-cash charges, Questcor's cash burn was $603,000 for the third quarter of 2002 as compared to cash burn of $1,705,000 for the third quarter last year, an improvement of $1,102,000, or 65%. For the nine months ended September 30, 2002, after deducting these non-cash charges, Questcor's cash burn was $893,000 as compared to $4,436,000 for the same period last year, an improvement of $3,543,000, or 80%. Net cash used in operating activities was $368,000 for the first nine months of 2002, a decrease of $4,177,000, or 92%, as compared to the first nine months of 2001. Additionally, Questcor's cash and cash equivalents balance was $9,203,000 at September 30, 2002, an increase of $1,220,000, as compared to the balance at June 30, 2002.

"We are very pleased with the results for the nine months ended September 30, 2002. Compared to the same period last year, our revenues are up, cash burn is down, and the working capital has improved," commented Charles J. Casamento, Chairman, President, and CEO of Questcor. "The improvement in the financial condition of Questcor is due in part to Acthar(R). This quarter marks the one year anniversary of the acquisition of Acthar(R), which contributed over $6,000,000 to our product sales for the nine months ended September 30, 2002. As promised, we have expanded into specific international markets by selecting well-positioned strategic partners, Orphan Australia and Beacon Pharmaceuticals, Ltd., to market and sell our products in Australia and the United Kingdom, respectively."

Update on Acthar(R)

Separately, in a Company Press Release on Wednesday, November 6, 2002, Questcor announced the approval by the Food and Drug Administration ("FDA"), of its supplemental New Drug Application for H.P. Acthar(R) Gel to extend the labeled shelf life of the product from 12 months to 18 months from the date of manufacture. Questcor also commented on the outcome of recent discussions with the FDA regarding the progress of the manufacturing site transfer of the product from the current contract manufacturer. The Company believes these events represent significant steps forward in the site transfer process, which will be necessary to ensure continuous supply of the product.

2002 Third Quarter Accomplishments

The quarter ended September 30, 2002 was marked by a number of significant achievements by Questcor. Some of the major accomplishments included:

-- Signed an agreement with Orphan Australia to market Acthar(R) and Ethamolin(R) in Australia and New Zealand.

-- Consummated an agreement with Beacon Pharmaceuticals, Ltd. to market Acthar(R) in the United Kingdom.

-- Improved financial condition of the Company over the same nine month period last year as evidenced by:

-- An increase in total revenues of $8,073,000

-- A decrease in net loss of $3,701,000 or 60%

-- A decrease in net cash flows used in operating activities of $4,177,000 or 92%

-- An increase in working capital of $4,012,000 or 132%

Third quarter ended September 30, 2002 Conference Call

Questcor Pharmaceuticals, Inc. (AMEX:QSC) will be hosting a conference call to coincide with the release of its third quarter results on Thursday, November 7, 2002 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time). Please call the following numbers to participate: 800-915-4836 (domestic) or 973-317-5319 (international).

A telephonic replay of this call will be available from 1:00 p.m. Eastern Time on Thursday, November 7, 2002 through 11:59 p.m., Eastern Time on Thursday, November 14, 2002. Please call 800-428-6051 (domestic) or 973-709-2089 (international) and use access number 267485. The conference call will be broadcast live over the Internet at Questcor's website, www.questcor.com. It will be archived and available for a limited time period after the call.

About Questcor

Questcor Pharmaceuticals, Inc. is an integrated specialty pharmaceutical company focused on the acquisition and marketing of acute care and critical care hospital/specialty pharmaceutical and related healthcare products. Questcor currently markets five products in the U.S.: HP Acthar(R) Gel, an injectable drug that is commonly used in treating patients with infantile spasm, or West Syndrome; Ethamolin(R), an injectable drug used to treat enlarged weakened blood vessels at the entrance to the stomach that have recently bled, known as esophageal varices; Glofil(TM)-125 and Inulin in Sodium Chloride, which are both injectable agents that assess how well the kidney is working by measuring glomerular filtration rate, or kidney function; and VSL#3(TM), a patented probiotic marketed as a dietary supplement, to promote normal gastrointestinal (GI) function. Probiotics are living organisms in food and dietary supplements, which, upon ingestion in certain numbers, improve the health of the host beyond their inherent basic nutrition. As part of a strategy to develop its products globally, Questcor has entered into 28 contractual relationships with public and private companies including: Ahn-Gook Pharmaceuticals of Korea; Aventis Pharmaceuticals Inc. of Bridgewater, NJ; Beacon Pharmaceuticals, Ltd. of Tunbridge Wells, Kent, United Kingdom; CSC Pharmaceuticals Handels GmbH of Vienna, Austria; Dainippon Pharmaceutical Co. Ltd., of Osaka, Japan; Orphan Australia of Melbourne, Australia; Rigel, Inc. of South San Francisco, CA; Sigma-Tau Finanziaria S.p.A of Rome, Italy; Tularik, Inc. of South San Francisco, CA and VSL Pharmaceuticals of Ft. Lauderdale, FL.

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 Questcor's results to differ from those reported herein. Factors that may cause such differences include, but are not limited to, Questcor's ability to accurately forecast the demand for each of their products, the gross margins achieved from the sale of those products and the expenses and other cash needs for the upcoming periods, Questcor's ability to obtain finished goods from its sole source contract manufacturers on a timely basis if at all, Questcor's need for additional funding, uncertainties regarding Questcor's intellectual property and other research, development, marketing and regulatory risks, and, to the ability of Questcor 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 for the calendar year ended December 31, 2001 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.

Table to follow on next page.

Questcor undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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

                                         September 30,   December 31,
                                             2002           2001
                                         -------------- --------------
Cash, cash equivalents and short-term
 investments                                $9,336          $5,571
Cash compensating balance                       --           5,000
Working capital                              7,062           2,479
Total assets                                13,834          15,072
Long-term debt (including $4 million
 face value convertible debentures, net
 of deemed discount, at September 30,
 2002)                                       2,805             121
Preferred stock                              5,081           5,081
Stockholders' equity (deficit)                 812            (300)

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

                             Three Months Ended   Nine Months Ended
                           Sept. 30,   Sept. 30,  Sept. 30,  Sept. 30,
                             2002        2001       2002       2001
                          ----------- ---------- ----------- ---------
Revenues:
 Net product sales        $   3,772  $   1,258  $   10,885  $  2,930
 Contract research and
  grant revenue                  17         59         143       341
 Technology revenue              --         --         250        90
 Royalty revenue                  9          4          15         9
                                                                  --
 Services revenue from a
  related party                  50         --         150        --
                          ---------- ---------- ----------- ---------
  Total revenues              3,848      1,321      11,443     3,370
                          ---------- ---------- ----------- ---------
Operating costs
 and expenses:
 Cost of product sales          645        369       1,800     1,008
 Sales and marketing
  (Note A)                    1,713        738       4,741     2,216
 General and
  administrative
  (Note A)                    1,206      1,293       3,953     3,060
 Research and development
  (Note A)                      791        639       2,107     2,176
 Depreciation
  and amortization              262        547         921     1,659
                          ---------- ---------- ----------- ---------
  Total operating costs
   and expenses               4,617      3,586      13,522    10,119
                          ---------- ---------- ----------- ---------
Loss from operations           (769)    (2,265)     (2,079)   (6,749)
Non-cash amortization of
 deemed discount on
 convertible debentures        (130)        --        (305)       --
Interest income (expense),
 net                            (11)       (45)          3        14
Other income (expense),
 net                           (151)        11        (261)        4
Rental income, net               66         38         212       600
                          ---------- ---------- ----------- ---------
Net loss                  $    (995) $  (2,261) $   (2,430) $ (6,131)
                          ========== ========== =========== =========
Basic and diluted net
 loss per common share    $   (0.03) $   (0.07) $    (0.06) $  (0.21)
                          ========== ========== =========== =========
Weighted average shares
 of common stock
 outstanding                 38,632     34,566      38,317    29,438
                          ========== ========== =========== =========
Note A:
Includes non-cash charges
 for stock-based
 compensation as follows:
  Sales and marketing     $      --  $      --  $       44  $     --
  General and
   administrative                --          8         243        31
  Research and development       --          1          24         5
                          ---------- ---------- ----------- ---------
Total                     $      --  $       9  $      311  $     36
                          ========== ========== =========== =========