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Pernix Therapeutics Holdings, Inc. (NYSE Amex: PTX), a specialty pharmaceutical company, today announced it has entered into a license and supply agreement with a private company for a new FDA-approved prescription product to treat gastroenterology disease. Under the terms of the agreement, Pernix obtained exclusive marketing rights to this gastroenterology product in the United States.
Cooper Collins, President and Chief Executive Officer of Pernix, said, “Our agreement to license a gastroenterology product represents an important milestone for the Company as we continue to execute on our business strategy focused on expanding our branded product portfolio into specialty areas beyond pediatrics. Prior to launching the product, we plan to establish a sales force of up to 30 representatives dedicated to gastroenterology. We expect to invest in the recruiting and training of this additional sales team, as we have invested in pediatrics. These investments, which continue to broaden and diversify our branded and generic businesses, are expected to drive the future growth of Pernix.”
This new product is expected to be available in mid-year of 2012 and will be positioned as a first-line therapy in a niche market of more than $100 million annually in the U.S.
Under the terms of the agreement, Pernix paid an up-front license fee of $2.0 million and expects to pay an additional fee of $2.0 million upon commercial launch of the product. In addition to these license fees, the agreement calls for Pernix to pay royalties and milestone payments based on the sales of the product.
VelocityHealth Securities, Inc. acted as the exclusive financial advisor to Pernix on this transaction.
About Pernix Therapeutics Holdings, Inc.
Pernix Therapeutics Holdings, Inc. is a specialty pharmaceutical company primarily focused on the sales, marketing, and development of branded and generic pharmaceutical products. The Company manages a portfolio of branded and generic products and Theobromine, a non-codeine, cough suppressant product candidate in development. The Company’s branded products for the pediatrics market include CEDAX®, an antibiotic for middle ear infections, Natroba™, a topical treatment for head lice marketed under an exclusive co-promotion agreement with ParaPRO, LLC and a family of prescription treatments for cough and cold (Brovex®, Aldex® and Pediatex®). The Company promotes its branded products through an established U.S. sales force. Pernix also markets generic products through its wholly-owned subsidiary, Macoven Pharmaceuticals. Founded in 1996, the Company is based in The Woodlands, TX.