Pernix Therapeutics will acquire both Cypress Pharmaceuticals, a generics company, and Hawthorn Pharmaceuticals, a branded drugs firm. Under terms of the agreement, Pernix will pay approximately $101 million, which includes an up-front payment of $68.5 million.
Cypress, founded in 1993, develops, markets, and distributes generic prescription pharmaceutical products. In 1999, Cypress established Hawthorn as a specialty branded business to market a line of internally developed pharmaceutical products.
This acquisition is expected to significantly increase and broaden Pernix’ branded and generic product portfolio. Hawthorn offers an array of pharmaceuticals including allergy, respiratory, iron deficiency, nephrology, and pain management products. Cypress offers a range of generic pharmaceutical products in the areas of cough and cold, nutritional supplements, analgesics, urinary tract, women’s health, prenatal vitamins, and dental health. Cypress and Hawthorn also have clinical and regulatory expertise to offer Pernix.
In 2012, revenues for Cypress and Hawthorn are expected to be approximately $50 million, consisting of approximately 54% generic products and 46% branded products. “This will be the most significant acquisition in the company’s history,” says Cooper Collins, president and CEO of Pernix. “The generic and branded businesses of Cypress and Hawthorn are an excellent fit for Pernix, which is expected to increase the company’s revenues for the full year 2013 to approximately $135–$145 million.”