Pernix Therapeutics Buys Cypress and Hawthorn Pharmaceuticals for $101M
Cypress produces generic medication and Hawthorn makes branded medication
Pernix Therapeutics Holdings Inc. (NYSE: PTX) will purchase Cypress Pharmaceutical Inc., a privately-held company that makes generic pharmaceuticals, and Hawthorn Pharmaceuticals Inc., a company that makes branded pharmaceuticals for up to $101 million.
The buyer, a specialty pharmaceutical company based in the Woodlands, Texas, will make an upfront payment of $68.5 million in cash and $12.5 million in equity. The company has a $60 million credit facility arranged by MidCap Financial.
Both targets are headquartered in Madison, Miss., and combined have about $50 million in revenue.
Pernix expects the deal to increase its branded and generic portfolio. The deal is subject to regulatory approval.
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