AG Paxton Announces $2 Million Settlement Payment to Baylor College of Medicine for Pediatric Neurological Research

Ken Paxton

AUSTIN – Attorney General Ken Paxton today announced that the Baylor College of Medicine will receive $2 million from a settlement reached by Texas with Questcor Pharmaceuticals, Inc. Baylor College of Medicine will use the $2 million for funding related to innovative pediatric neurological research projects.

In January, Texas, the Federal Trade Commission and four other state attorneys general resolved a lawsuit against Questcor alleging it monopolized the market for Acthar, the only adrenocorticotropic hormone (ACTH)-based therapeutic drug sold in the United States. Acthar is used to treat several diseases, including infantile spasms, a disease in which infants suffer from epileptic seizures that can result in severe injury or death. Questcor blocked competition for Acthar by acquiring the U.S. rights for Synacthen Depot, the only other ACTH-based drug sold in the world. Questcor also increased the price of the drug by 85,000 percent, charging over $34,000 for a vial of the drug that used to cost $40 per vial.

The research that demonstrated Acthar was an effective treatment for infantile spasms was conducted by a team lead by Richard Hrachovy at Baylor College of Medicine in the 1970s and 1980s.

“Baylor College of Medicine has long been a leader in researching treatments for children with neurological problems,” said Attorney General Paxton. “We are pleased that this lawsuit and settlement will allow Baylor to continue its critical research.”

In addition to paying disgorgement, Questcor must transfer Synacthen to a firm that will have the incentive to develop and market the drug in the U.S.

Texas was joined by the attorneys general of Alaska, Maryland, New York and Washington in entering into this settlement.

To view the settlement complaint click here.

To view the stipulated order click here.