Pernix Therapeutics to buy private pharma co for $101 million
(Reuters) - Pernix Therapeutics Holdings Inc PTX.A, a maker of pediatric drugs, will buy privately held drugmaker Cypress Pharmaceuticals Inc for about $101 million in cash and stock to expand its branded and generic drugs portfolio.
The deal includes an upfront payment of $68.5 million in cash and $12.5 million in shares, along with $10 million payable in December 2013 and $10 million as milestone payments.
Revenue from Madison, Mississippi-based Cypress and its subsidiary Hawthorn Pharmaceuticals Inc is expected to be about $50 million in 2012, Pernix said.
"The generic and branded businesses of Cypress and Hawthorn are an excellent fit for Pernix, which is expected to increase revenues for the full year 2013 to approximately $135 million to $145 million," Pernix Chief Executive Cooper Collins said in a statement.
Pernix reported third-quarter revenue of $18.1 million on Wednesday, up 6.3 percent from a year earlier.
This is Pernix's second acquisition this year. It bought Houston, Texas-based Great Southern Laboratories - a privately held contract developer and manufacturer of products for pharmaceutical companies - in July.
Pernix, which sells antibiotics and other drugs to treat allergy and respiratory illnesses in children, would add more than 150 products to its portfolio through the deal, including generic drugs for cough, cold and dental health, as well as branded prescription products.
MidCap Financial LLC will operate as sole book runner, administrative agent and joint lead arranger to the deal.
Shares of Woodlands, Texas-based Pernix closed at $7.48 on Tuesday on the NYSE Amex.
(Reporting By Vrinda Manocha and Zeba Siddiqui in Bangalore; Editing by Roshni Menon)