Pernix Therapeutics Holdings, Inc.
) 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
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
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
We are encouraged by Pernix's efforts to consolidate its
Pernix currently carries a Zacks Rank #3 (Hold). Right now,
Forest Laboratories Inc.
) look attractive with a Zacks Rank #2 (Buy).
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