Exhibit 99.1
 
 QUESTCOR REPORTS SECOND QUARTER RESULTS
 - EPS of $0.12 -
- Net Sales of $24.9 Million -
- Conference Call Today at 4:30 p.m. Eastern -
 Union City, CA  July 24, 2008  Questcor Pharmaceuticals, Inc
 Highlights for the Second Quarter 2008
 
    
    Acthar net sales of $24.7 million
    
    Acthar shipments of 1,560 vials
    
    End user demand for Acthar slightly exceeded the high end of the Companys expected
range of 1,275 to 1,425 vials
    
    Initiated basic research funding for infantile spasms
    
    Identified several promising new possible therapeutic uses of Acthar
    
    Developed a plan for additional funding of studies for several Acthar indications
    
    sNDA resubmission for IS on track for filing with FDA in 2008
    
    Free Acthar provided to patients under assistance programs now exceeds $13 million




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Growth Initiatives
   2




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Regulatory Activity and Product Development
    3




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Acthar Shipment Levels and End User Demand
   Medicaid Rebates and Government Chargebacks
  4




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Net Income and Income Taxes
    Cash, Accounts Receivable and Share Data
  5




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2008 Outlook
  
    
    If Acthar demand remains in the range experienced since the implementation of the new
Acthar strategy, then annual gross sales before reduction for Medicaid rebates and
government chargebacks would be approximately $117 million to $130 million;
    
    Acthar gross sales resulting from Questcors reported shipments will be reduced by
approximately 30% related to Medicaid rebates and government chargebacks in the
determination of net sales. If Acthar demand remains in the range experienced since the
implementation of the new Acthar strategy, this would result in annual net sales of
approximately $82 million to $91 million;
    
    Gross margins of approximately 91%;
    
    Selling, general and administrative expense (excluding non-cash SFAS 123R stock-based
compensation expense) of approximately $15 million to $17 million;
    
    Research and development expenses (excluding non-cash SFAS 123R stock-based
compensation expense) of approximately $10 million to $14 million resulting from Questcors
efforts related to its Acthar submission to the FDA for the treatment of IS, Questcors
support of external research, and the continued efforts related to the development of
QSC-001;
    
    Non-cash SFAS 123R stock-based compensation expense of approximately $4.5 million
resulting from stock option grants, restricted stock grants, and Questcors employee stock
purchase plan;
    
    Excluding the impact of the second quarter reversal of the valuation allowance
discussed above, the Company estimates that its 2008 effective tax rate for financial
reporting purposes will be approximately 42%. However, the Company continues to estimate
that actual tax payments associated with the Companys 2008 taxable income will be paid at
a
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rate of approximately 18% because of the Companys ability to utilize net operating loss
carryforwards available to offset a portion of the Companys 2008 taxable income. The
Company has made estimated tax payments of $3.8 million for the six months ended June 30,
2008 associated with the Companys estimated 2008 tax obligations;
    
    Diluted weighted average shares of 72 million to 74 million. These amounts do not
include the impact of any future repurchases of common stock by Questcor.
 Conference Call Details
   About Questcor
 ® ®
 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 continue to
successfully implement its strategy and business model for Acthar, the introduction of competitive
products, Questcors ability to accurately forecast the demand for its products, the gross margin
achieved from the sale of its products, Questcors ability to enforce its product returns policy,
Questcors ability to estimate the quantity of Acthar used by government entities and
Medicaid-eligible patients, that the actual amount of rebates and discounts related to the use of
Acthar by government entities and Medicaid-eligible patients may differ materially from Questcors
estimates, the sell-through by Questcors distributors, the expenses and other cash needs for
upcoming periods, the inventories carried by Questcors distributors, specialty
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pharmacies and hospitals, volatility in Questcors monthly and quarterly Acthar shipments and
end-user demand, Questcors ability to obtain finished goods from its sole source contract
manufacturers on a timely basis if at all, Questcors ability to retain key management personnel,
Questcors ability to utilize its net operating loss carry forwards to reduce income taxes on
taxable income, research and development risks, uncertainties regarding Questcors intellectual
property and the uncertainty of receiving required regulatory approvals in a timely way, or at all,
other research, development, and regulatory risks, as well as the risks discussed in Questcors
annual report on Form 10-K for the year ended December 31, 2007 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.
  (Tables to follow)
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Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Net sales
    
    $
    24,898
    
    
    $
    4,144
    
    
    $
    44,030
    
    
    $
    7,845Cost of sales (exclusive of amortization of
purchased technology)
    
    
    2,190
    
    
    
    914
    
    
    
    3,509
    
    
    
    1,764Gross profit
    
    
    22,708
    
    
    
    3,230
    
    
    
    40,521
    
    
    
    6,081Gross margin
    
    
    91
    %
    
    
    78
    %
    
    
    92
    %
    
    
    78
    %Operating costs and expenses:Selling, general and administrative
    
    
    4,855
    
    
    
    4,747
    
    
    
    9,921
    
    
    
    10,297Research and development
    
    
    3,555
    
    
    
    951
    
    
    
    5,526
    
    
    
    2,091Depreciation and amortization
    
    
    123
    
    
    
    125
    
    
    
    245
    
    
    
    248Total operating costs and expenses
    
    
    8,533
    
    
    
    5,823
    
    
    
    15,692
    
    
    
    12,636Income (loss) from operations
    
    
    14,175
    
    
    
    (2,593
    )
    
    
    24,829
    
    
    
    (6,555
    )Other income (expense):Interest income
    
    
    244
    
    
    
    181
    
    
    
    608
    
    
    
    391Other income (expense), net
    
    
    
    
    
    
    247
    
    
    
    11
    
    
    
    240Gain on sale of product rights
    
    
    
    
    
    
    448
    
    
    
    
    
    
    
    448Total other income
    
    
    244
    
    
    
    876
    
    
    
    619
    
    
    
    1,079Income (loss) before income taxes
    
    
    14,419
    
    
    
    (1,717
    )
    
    
    25,448
    
    
    
    (5,476
    )Income tax expense
    
    
    5,625
    
    
    
    
    
    
    
    10,113
    
    
    
    Net income (loss)
    
    
    8,794
    
    
    
    (1,717
    )
    
    
    15,335
    
    
    
    (5,476
    )Deemed dividend on Series A preferred stock
    
    
    
    
    
    
    
    
    
    
    5,267
    
    
    
    Net income (loss) applicable to common shareholders
    
    $
    8,794
    
    
    $
    (1,717
    )
    
    $
    10,068
    
    
    $
    (5,476
    )Net income (loss) per share applicable to common
shareholders:
    
    $
    0.12
    
    
    $
    (0.03
    
    
    $
    _ 0.04
    
    
    $
    (0.12Basic
    
    $
    0.13
    
    
    $
    (0.02
    )
    
    $
    0.14
    
    
    $
    (0.08
    )Diluted
    
    $
    0.12
    
    
    $
    (0.02
    )
    
    $
    0.14
    
    
    $
    (0.08
    )Shares used in computing net income (loss) per
share applicable to common shareholders:Basic
    
    
    69,205
    
    
    
    68,989
    
    
    
    69,576
    
    
    
    68,882Diluted
    
    
    72,889
    
    
    
    68,989
    
    
    
    73,496
    
    
    
    68,882
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June 30,
    
    
    December 31,2008
    
    
    2007ASSETSCurrent assets:Cash and cash equivalents
    
    $
    20,476
    
    
    $
    15,939Short-term investments
    
    
    18,418
    
    
    
    14,273Total cash, cash equivalents and short-term investments
    
    
    38,894
    
    
    
    30,212Accounts receivable, net of allowance for doubtful accounts
of $118 and $57 at June 30, 2008 and December 31, 2007,
respectively
    
    
    21,587
    
    
    
    23,639Inventories, net
    
    
    2,446
    
    
    
    2,365Prepaid expenses and other current assets
    
    
    563
    
    
    
    778Deferred tax assets
    
    
    8,525
    
    
    
    14,879Total current assets
    
    
    72,015
    
    
    
    71,873Property and equipment, net
    
    
    443
    
    
    
    522Purchased technology, net
    
    
    3,819
    
    
    
    3,967Goodwill
    
    
    299
    
    
    
    299Deposits and other assets
    
    
    710
    
    
    
    744Deferred tax assets
    
    
    1,043
    
    
    
    1,043Total assets
    
    $
    78,329
    
    
    $
    78,448LIABILITIES, PREFERRED STOCK AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    2,969
    
    
    $
    1,777Accrued compensation
    
    
    973
    
    
    
    1,945Sales-related reserves
    
    
    12,402
    
    
    
    8,176Income taxes payable
    
    
    
    
    
    
    1,330Other accrued liabilities
    
    
    1,576
    
    
    
    1,492Total current liabilities
    
    
    17,920
    
    
    
    14,720Lease termination and deferred rent liabilities
    
    
    1,675
    
    
    
    1,869Other non-current liabilities
    
    
    3
    
    
    
    7Preferred stock, no par value, 7,500,000 shares authorized; none
and 2,155,715 Series A shares issued and outstanding at June 30,
2008 and December 31, 2007, respectively (aggregate liquidation
preference of $10,000 at December 31, 2007)
    
    
    
    
    
    
    5,081Shareholders equity:Common stock, no par value, 105,000,000 shares authorized;
69,066,449 and 70,118,166 shares issued and outstanding at
June 30, 2008 and December 31, 2007, respectively
    
    
    100,316
    
    
    
    108,387Accumulated deficit
    
    
    (41,602
    )
    
    
    (51,670
    )Accumulated other comprehensive gain
    
    
    17
    
    
    
    54Total shareholders equity
    
    
    58,731
    
    
    
    56,771Total liabilities, preferred stock and shareholders equity
    
    $
    78,329
    
    
    $
    78,448
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Six Months EndedJune 30,2008
    
    
    2007OPERATING ACTIVITIESNet income (loss)
    
    $
    15,335
    
    
    $
    (5,476
    )Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:Share-based compensation expense
    
    
    3,088
    
    
    
    792Deferred income taxes
    
    
    6,354
    
    
    
    Amortization of investments
    
    
    (354
    )
    
    
    Depreciation and amortization
    
    
    244
    
    
    
    248Loss on disposal of equipment
    
    
    
    
    
    
    12Gain on sale of product rights
    
    
    
    
    
    
    (448
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    2,052
    
    
    
    568Inventories
    
    
    (81
    )
    
    
    551Prepaid expenses and other current assets
    
    
    215
    
    
    
    256Accounts payable
    
    
    1,192
    
    
    
    (783
    )Accrued compensation
    
    
    (972
    )
    
    
    (190
    )Sales-related reserves
    
    
    4,226
    
    
    
    (319
    )Income taxes payable
    
    
    (1,330
    )
    
    
    Other accrued liabilities
    
    
    84
    
    
    
    (57
    )Other non-current liabilities
    
    
    (198
    )
    
    
    8Net cash flows provided by (used in) operating activities
    
    
    29,855
    
    
    
    (4,838
    )INVESTING ACTIVITIESPurchase of property and equipment
    
    
    (17
    )
    
    
    (65
    )Acquisition of purchased technology
    
    
    
    
    
    
    (300
    )Purchase of short-term investments
    
    
    (31,714
    )
    
    
    (14,897
    )Proceeds from the sale and maturities of short-term investments
    
    
    27,886
    
    
    
    7,250Net proceeds from sale of product rights
    
    
    
    
    
    
    448Changes in deposits and other assets
    
    
    34
    
    
    
    (11
    )Net cash flows used in investing activities
    
    
    (3,811
    )
    
    
    (7,575
    )FINANCING ACTIVITIESIssuance of common stock, net
    
    
    671
    
    
    
    407Repurchase of Series A preferred stock
    
    
    (10,348
    )
    
    
    Repurchase of common stock
    
    
    (11,830
    )
    
    
    Net cash flows provided by (used in) financing activities
    
    
    (21,507
    )
    
    
    407Increase (decrease) in cash and cash equivalents
    
    
    4,537
    
    
    
    (12,006
    )Cash and cash equivalents at beginning of period
    
    
    15,939
    
    
    
    15,937Cash and cash equivalents at end of period
    
    $
    20,476
    
    
    $
    3,931
 Questcor Pharmaceuticals, Inc.
 EVC Group
 11