Pernix splashes out over $100 million to buy Cypress Pharma and Hawthorn Pharma

15 November 2012

US specialty drugmaker Pernix Therapeutics (NYSE: PTX) has entered into a definitive agreement to acquire privately-held Cypress Pharmaceuticals, a maker of generic drugs, and its subsidiary Hawthorn Pharmaceuticals, which markets branded medicines.

Under the terms of the accord, Pernix will pay around $101 million, which includes an up-front $68.5 million in cash and $12.5 million in equity, $10 million payable in December 2013, and an additional $10 million in milestone payments. The company has received a commitment of a $60 million credit facility.

Second acquisition this year

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