March 11, 2015
By Alex Keown, BioSpace.com Breaking News Staff
MORRISTOWN, N.J.-- Pernix Therapeutics Holdings, Inc. , will take over San Diego-based Zogenix ’s pain killer pipeline, Zohydro ER, in a $383 million deal, the company announced Wednesday morning.
Pernix (PTX) will pay $100 million upfront to acquire the Zohydro ER franchise, which includes three extended release hydrocodone products, including an abuse-deterrent pipeline. The remaining $283.5 million will be paid out in milestone payments if the Zohydro ER franchise achieves agreed-upon net sales targets of up to $1 billion annually. The deal is expected to be finalized sometime in April.
The deal is part of a Pernix plan to expand the company’s reach into underserved therapeutic areas. The acquisition of the pain killer pipeline will establish a platform for Pernix to become a leading player in the opioid pain market, the company said.
“We are enthusiastic about adding Zohydro ER to our specialty product portfolio and to bringing the clinical benefits of Zohydro ER to patients suffering with chronic pain and in need of around-the-clock opioid therapy. Zohydro ER is an ideal strategic fit for Pernix, having tremendous synergy with our existing CNS franchise,” said Pernix Chief Executive Officer Doug Drysdale.
Pernix plans to keep some of key Zohydro staff on after the deal is finalized, including approximately 100 sales representatives and key commercial support personnel. Pernix expects keeping these employees on will facilitate a smooth transition for the pain killer medications, as well as promoting Pernix’ own Silenor, a sleep aid.
Zohydro ER was launched in March of 2014 and consists of three generations of extended release hydrocodone, Zohydro ER, Zohydro ER with BeadTek and ZX007, the Altus formulation. Zohydro ER also includes licenses to multiple patents designed to protect the franchise through 2030.
Zohydro ER is an extended-release form of hydrocodone used for daily treatment of severe pain.
Zohydro ER with BeadTek was approved by the FDA in January and is expected to launch sometime next month. The medication is designed to achieve abuse deterrent properties. BeadTek forms a viscous gel when crushed and dissolved in liquids or solvents.
Pernix will work with Zogenix to continue the development of ZX007, an innovative abuse deterrent tablet formulation of hydrocodone ER, with patent protection through 2030. An NDA submission for ZX007 is expected mid-2016.
In December 2014 Zohydro ER had an annual net sales run rate of $23 million and prescriptions grew 15 percent over the previous month.Pernix stock was trading up 2.75 points this morning on the NASDAQ exchange.
BioSpace Temperature Poll
Vertex Pharmaceuticals made news last week when it terminated leases on three properties in Cambridge, Mass, that freed up 313,000 square feet of space in the Genetown area. The company has spent a significant part of 2014 consolidating its operations on the South Boston waterfront, leasing 291,000 square feet of office space at West Kendall Street in Cambridge’s Kendall Square. So we wanted to ask the BioSpace community: Is Boston going to be getting more biotech leases anytime soon, or fewer tenants?
