logo
  Join        Login             Stock Quote

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.

[Related -Analysts Upgrades And Downgrades: TPLM, CSCO, SXL, LAZ, SOMX]

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.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFour Stocks in the Dow Making Fresh 52 Week Lows

“What gets weak tends to get weaker; what gets strong tends to get read on...

article imageGreece And The Cemetery For Your Wealth

The Greek default is merely the opening act of the worst sovereign-debt crisis in history. By the time it read on...

article imageAll Signs Point To Higher Gold Prices

In the face of historic monetary stimulus from nearly every major central bank in the world over the past read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.