GSK prevails in Pernix arbitration

CNS focused drugmaker Pernix Therapeutics (NYSE: PTX) has lost out in its arbitration dispute with UK pharma major GlaxoSmithKline (LSE: GSK), with the news sending the US firm’s share plunging 18.1% to $2.44 by close of trading on Friday.

Pernix and GSK had been in arbitration regarding claims related to the migraine treatment Treximet (sumatriptan/naproxen sodium) asset purchase agreement and supply agreement signed in 2014. On January 31, 2017, the arbitration tribunal issued opinions in favor of GSK, awarding it damages and fees in the amount of about $35 million, plus interest (estimated to be around $2 to $5 million). The tribunal also denied Pernix’ claim that GSK breached its obligations under the supply agreement.

Pernix has already paid to GSK, or into an escrow account, an aggregate of $16.5 million, which will offset the total award. Pernix is reviewing the opinions, including the amount of interest, and intends to work with GSK to conclude the matter.