Pernix Therapeutics to buy Somaxon for $25 mln
Speciality pharmaceutical company Pernix Therapeutics Holdings, Inc said it has signed a merger deal with Somaxon Pharmaceuticals, Inc to acquire Somaxon in a stock-for-stock deal for $25 million.
As per the terms of the deal, California-based Somaxon stockholders will receive aggregate consideration worth $25 million in Pernix common stock.
The number of shares of Pernix common stock to be issued to the stockholders of Somaxon will be based on the volume-weighted average price of Pernix’s common stock over the 30 day period ending on the day immediately prior to the closing of the merger.
CEO and President of Pernix, Cooper Collins said, “The acquisition of Somaxon is another step in the growth strategy of Pernix which is likely to continue to expand our product portfolio, in addition to our recently announced agreements to buy Cypress Pharmaceuticals and Hawthorn Pharmaceuticals. Somaxon’s product Silenor, which is a non-seasonal product, broadens our product line and may also have potential as an OTC product in the future.”
Silenor is approved to treat insomnia characterized by difficulty with sleep maintenance and is not a controlled substance.
The pharmaceutical company Pernix expects the net sales from Silenor on an annualized basis to be in the range of around $10 million to $15 million and EBIDTA resulting from such Silenor net sales in the range of approximately $5 million to $10 million.
Richard W Pascoe, Somaxon's President and Chief Executive Officer, said, "We believe this acquisition will provide the opportunity to more fully capitalize on the Silenor brand. Moreover, with Pernix's recently announced acquisition of Cypress and Hawthorn, we believe that the combined entity, with its broad platform of branded, generic and OTC products, represents long-term value for the benefit of all of our stockholders. We look forward to working with the Pernix management team as we integrate Somaxon with Pernix."
Pernix Pharmaceuticals is focused on sales, marketing, manufacturing and development of branded, generic and OTC pharmaceutical products. Somaxon Pharmaceuticals is a specialty pharmaceutical company focused on the in-licensing, development and commercialization of proprietary branded products.