Pernix to sell manufacturing facility to reduce costs

US specialty pharma company Pernix Therapeutics (Nasdaq: PTX) has signed a definitive agreement to divest its Houston, Texas-based manufacturing operations, Pernix Manufacturing (PML), to Florida-based Woodfield Pharmaceutical.

Woodfield will acquire the entire PML operation and will assume the mortgage associated with the facility. Pernix expects to receive around $1.2 million in net proceeds at closing and realize about $5.0 million in annualized cost savings from the divestiture. As part of the agreement, Woodfield will continue to manufacture the existing Pernix products under a long-term supply agreement. Pernix anticipates a closing of April 15. Closing of the transaction is subject to standard closing conditions and deliveries.

In recent months, Pernix has publicly struggled with poor earnings and made efforts to drive down expenses by reducing personnel and selling about $30 million worth of generic pharmaceutical assets, commented the local Houston Business Journal.