Pernix Therapeutics has entered into a definitive agreement to acquire Cypress Pharmaceuticals and Hawthorn Pharmaceuticals in Madison, Mississippi, US.
Hawthorn offers branded drugs including allergy, respiratory, iron deficiency, nephrology and pain management, while Cypress provides generic drugs in the areas of cough and cold, nutritional supplements, analgesics, urinary tract, women's health, pre-natal vitamins and dental health.
The acquisition is expected to increase and broaden Pernix's branded and generic product portfolio.
Under the terms of the agreement, Pernix will pay approximately $101m, including an up-front payment of $68.5m in cash and $12.5m in equity, $10m payable in December 2013, and an additional $10m in milestone payments.
Pernix president and CEO Cooper Collins said the acquisition of generic and branded businesses of Cypress and Hawthorn is expected to increase the company's revenues for the full year 2013 to approximately $135-$145m.
"The Cypress and Hawthorn pipeline, which includes products filed with the FDA or in development, will move us forward on our strategic plan to drive the Company's future success," Collins added.
"We are confident that Pernix, Cypress and Hawthorn are an excellent combination that will provide strong growth in the future."
The acquisition, which is subject to applicable regulatory approvals and other terms and conditions, is expected to close by the end of the year.
