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Pernix Therapeutics (PTX) To Buy Somaxon Pharma (SOMX)

 December 11, 2012 07:39 AM
 


(By Balaseshan) Pernix Therapeutics Holdings Inc. (NYSEAMEX: PTX) said it has agreed to buy Somaxon Pharmaceuticals Inc. (NASDAQ: SOMX) in a stock-for-stock transaction with a total equity value of $25 million.

Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Somaxon stockholders will receive aggregate consideration equal to $25 million in Pernix common stock.

The number of Pernix common shares to be issued to Somaxon stockholders will be based on the volume-weighted average price of Pernix over the 30 day period ending on the day immediately prior to the closing of the proposed merger, subject to limitations on the maximum and minimum number of Pernix common shares issuable in the transaction based on a price range of $6.00 to $9.00 per share.

[Related -Indices Close Ahead, But Reverse Sharply Off Highs]

On a trailing 12-month basis as of September 30, 2012, Somaxon had net sales related to Silenor of about $11.7 million. Pernix expects net sales from Silenor on an annualized basis to be about $10 million to $15 million and EBITDA resulting from such Silenor net sales in the range of about $5 million to $10 million.

Somaxon's product Silenor, which is a non-seasonal product, broadens Pernix's branded product line and may also have potential as an OTC product in the future. Silenor (doxepin) is approved for the treatment of insomnia characterized by difficulty with sleep maintenance and is not a controlled substance.

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In clinical trials, Silenor demonstrated maintenance of sleep, including into the seventh and eighth hours of the night, with no meaningful evidence of next day residual effects and an overall adverse events profile that was comparable to placebo.

"The acquisition of Somaxon is another important step in the growth strategy of Pernix, which is expected to continue to expand our product portfolio, in addition to our recently announced agreements to acquire Cypress Pharmaceuticals and Hawthorn Pharmaceuticals," said Cooper Collins, President and CEO of Pernix.

PTX closed Monday's regular session up 5.73% at $7.93, while SOMX ended at $1.47.

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