PERNIX To Buy TREXIMET® Tablets For Migraine From GSK - Quick Facts

(RTTNews) - Pernix Therapeutics Holdings, Inc. (PTX) reported signing an agreement with GlaxoSmithKline (GSK, GSK.L) to acquire the U.S rights to Treximet tablets for the acute treatment of migraine attacks with or without aura in adults. Pernix would make an upfront payment of $250 million to GSK for the U.S rights to Treximet, while GSK would assign to Pernix the Product Development and Commercialization Agreement or PDC Agreement between GSK and POZEN, Inc. (POZN).

POZEN and Pernix would amend the PDC Agreement to facilitate further development of Treximet. The firm would buy an existing inventory from GSK and GSK would continue to manufacture Treximet in the near future under a long-term Supply Agreement with Pernix.

The transaction is expected to close and to transfer Treximet no later than August 1, 2014, following Hart Scott Rodino approval and closing of financing by Pernix. The transaction would be financed via. a combination of cash, debt and equity-linked or other securities.

This transaction is anticipated to nearly double Pernix revenues and provide EBITDA margins exceeding 30%, on a fiscal 2014 pro forma basis. Pernix sees pro forma fiscal 2015 total company revenues to exceed $230 million with an EBITDA margin of more than 40%. Pernix's team of nearly 90 specialty sales professionals would support the sales and marketing of Treximet.

Pernix plans to begin sales of Treximet immediately following the transaction closure with its approximately 90 sales professionals to specific targets in the Neurology, Psychiatry and the Primary Care audiences.

The amended PDC Agreement provides for royalties of 18% of net sales with quarterly minimum royalty amounts of $4 million for the calendar quarters commencing on January 1, 2015 and ending on March 31, 2018.

Doug Drysdale, Chairman, President and CEO of Pernix noted, "The acquisition of Treximet®further accelerates the transformation of Pernix into a specialty pharmaceutical company and expands our portfolio of CNS brands, Silenor® and KhedezlaTM."