How did Questcor protect Acthar from competition?
Questcor paid $135 million for Synacthen Depot's US rights — against a rival bid of $16 million — specifically to eliminate the only potential US competitor, leading to a $100 million FTC settlement and a forced licensing to an approved third party.
Outside the US, doctors used Synacthen Depot, a synthetic ACTH product available at a fraction of Acthar's US price. In June 2013 Questcor bought the US rights to Synacthen from Novartis, outbidding companies that planned to develop it and sell it at a significant discount to Acthar. The FTC alleged the acquisition was designed to eliminate the greatest competitive threat to Acthar's monopoly. One rival, Retrophin, had bid $16 million; Questcor paid $135 million. In January 2017 Mallinckrodt paid $100 million to settle the FTC and state charges and agreed to license Synacthen for infantile spasms and nephrotic syndrome to an FTC-approved licensee, which became West Pharmaceuticals. The company did not admit liability.