Pernix Therapeutics Holdings, Inc. (PTX) recently completed the sale of some of its non-core assets to privately-held Breckenridge Pharmaceutical, Inc.
We note that the sale was announced in Aug 2013 concurrent with the company’s second-quarter results when Pernix entered into an agreement to sell certain generic assets owned by its subsidiary, Cypress Pharmaceuticals, to Breckenridge Pharma for $30 million.
The divested assets include six approved and marketed products along with 11 Abbreviated New Drug Applications (ANDAs) filed with the U.S. Food and Drug Administration (:FDA) and certain ANDAs in various stages of development.
The original purchase price of $30 million was adjusted to $29.7 million in order to permit Pernix to retain the currently marketed product, Arbinoxa.
Pernix expects to pay off its long-term debt from the proceeds generated from the sale of non-core assets and other initiatives.
We remind investors that Pernix has completed the acquisitions of Cypress Pharma (a privately-owned generic pharmaceutical company) and Hawthorn Pharma (a privately-owned branded pharmaceutical company) at the end of Dec 2012.
The erstwhile Cypress Pharma offered generic drugs targeting the fields of cough and cold, nutritional supplements, analgesics, urinary tract, women’s health, pre-natal vitamins and dental health. On the other hand, Hawthorn Pharma offered branded pharmaceutical products for allergy, respiratory, iron deficiency, nephrology and pain management.
In early Mar 2013, Pernix completed the acquisition of Somaxon Pharmaceuticals, thereby adding insomnia drug Silenor to its portfolio.
We are encouraged by Pernix’s efforts to consolidate its product portfolio.