Pernix Therapeutics Holdings, Inc. (“Pernix”) (NYSE Amex: PTX), a specialty pharmaceutical company primarily focused on the pediatric market, today announced financial results for the three and nine months ended September 30, 2011.
For the third quarter of 2011, net revenues increased by 120% to $17.1 million, compared to $7.8 million for the third quarter of 2010. The increase in net revenues was due primarily to higher volume of product sales resulting from the launch of the Company’s new CEDAX product formulation, Natroba, and certain generic products.
Net income for the third quarter of 2011 was $2.0 million, or $0.08 per basic and diluted share, compared to $2.4 million, or $0.10 per basic and diluted share for the third quarter of 2010. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA, a non-GAAP measure) increased 34% to $3.6 million for the third quarter of 2011, compared to $2.7 million for the third quarter of 2010. See the table at the end of this press release for a reconciliation of EBITDA and adjusted EBITDA to net income.
Cooper Collins, President and Chief Executive Officer of Pernix, said, “Pernix continued to deliver strong revenue growth, driven by the new CEDAX 180mg formulation, the launch of Natroba, and additional generic products. Going forward, we believe the Company is in a solid financial position and will continue to grow its branded pediatric and generic businesses. We are also currently evaluating licensing and acquisition opportunities to expand into other therapeutic areas that are expected to further broaden our product portfolio and leverage our business platform.”
Selling, general and administrative (“SG&A”) expenses in the third quarter of 2011 increased to $5.4 million, compared to $3.5 million for the third quarter of 2010. The increase was primarily due to higher salaries, bonuses, commissions, incentives and stock compensation expense. The increase in commissions was due to greater gross sales and the higher commission rates paid on sales of Natroba. Depreciation and amortization expense increased to $0.6 million for the third quarter of 2011, compared to $0.3 million for the third quarter of 2010. The increase is due to the amortization under certain acquisition agreements, including CEDAX and Macoven. The Company also recognized $0.1 million in expenses related to its joint venture with SEEK for the development of Theobromine during the third quarter of 2011. The Company recognized an income tax expense of $0.9 million for the third quarter of 2011 and 2010.