Pernix Therapeutics Holdings, Inc. (“Pernix” or the “Company”) (NASDAQ MKT: PTX), a specialty pharmaceutical company, today announced financial results for the quarter and year-to-date period ended June 30, 2012.
The Company also announced today that it has entered into an agreement to sell certain generic assets owned by its subsidiary, Cypress Pharmaceuticals, to Breckenridge Pharmaceutical, Inc. for $30 million. Under the terms of the agreement, Breckenridge will pay Pernix $20 million in an upfront payment and $10 million which is to be paid in two equal installments over the next two years. The assets include 7 previously marketed Abbreviated New Drug Applications (ANDAs), 11 ANDAs filed at the FDA, and certain other ANDAs in various stages of development. The agreement contains customary representations, warranties, covenants and indemnities by the parties, and the closing of the transactions contemplated by the agreement is subject to the satisfaction of certain customary conditions described therein. This transaction is expected to close no later than mid-September 2013.
Michael Pearce, Chairman, President and CEO, said, “We are executing on critical deliverables. By continuing to integrate and consolidate our recent acquisitions of Cypress Hawthorn and Somaxon, reducing costs, improving sales force productivity, and selling certain non-core assets, the Company has regained financial footing and is repositioned for growth.”
Financial ResultsFor the second quarter 2013, net sales increased by approximately 96% to $20.6 million, compared to $10.5 million for the same period in the prior year. The growth in net revenues was due primarily to sales of branded and generic products acquired from Cypress Hawthorn and Silenor products acquired in the merger with Somaxon. Pernix closed on its acquisition of Cypress Hawthorn on December 31, 2012 and on its merger with Somaxon on March 6, 2013. Total net product revenues for the second quarter of 2013 consisted of 53% from generic product sales and 47% from brand product sales.