Breckenridge Buys ANDAs for $30M from Pernix' Cypress Unit
Breckenridge Pharmaceutical said today it will acquirefor $30 million a set of generic drug assets from Cypress Pharmaceuticals. The set includes 11 Abbreviated New Drug Applications (ANDAs) filed with the FDA, certain ANDAs in various stages of development, as well as seven previously marketed products.
Cypress is a subsidiary of Pernix Therapeutics, which is primarily focused on the sales, marketing, manufacturing, and development of branded, generic, and OTC pharmaceutical products. Breckenridge will pay Pernix $20 million up front and $10 million to be paid in two equal installments over the next two years. The deal is expected to close no later than mid-September 2013.
Breckenridge said it will continue to market the approved products and to pursue approvals for the ANDAs currently filed and pending with FDA, details of which the company did not furnish in a statement. Between 2008 and the first quarter of this year, Cypress had been awarded nine ANDA approvals, with nine other ANDAs then on file with FDA for future approvals, according to Pernix’ 10-Q filing for Q1.
In addition to solid oral products, the assets being acquired by Breckenridge include various dosage forms, such as ophthalmic, nasal spray, oral solution, syrup, and powder products.
"Breckenridge sees this acquisition as an opportunity to expand our current portfolio, as well as our R&D pipeline,” Larry Lapila, evp of Breckenridge Pharmaceutical, said in the statement. “The Cypress assets are a natural fit to and complement the Breckenridge portfolio.”
Founded in 1983, privately held Breckenridge markets more than 70 own-label generic prescription products in numerous therapeutic categories, in a variety of dosage forms.
Breckenridge announced its acquisition of assets the same day Pernix announced second-quarter results showing a net loss of about $5.9 million during Q2, compared with an $0.9 million net loss a year earlier, on net sales that nearly doubled from Q2 2012 to $20.6 million, reflecting M&A activity since then. Pernix acquired Cypress Hawthorn on December 31, 2012, and merged with Somaxon on March 6.
This story has been corrected from an earlier version, which misidentified the source of second-quarter results; Breckenridge is not a public company. GEN regrets the error.