SEC Filings

8-K
PERNIX THERAPEUTICS HOLDINGS, INC. filed this Form 8-K on 11/13/2018
Entire Document
 
Exhibit 99.1

Exhibit 99.1

Pernix® Therapeutics Reports Third Quarter 2018
Financial Results

MORRISTOWN, NJ - November 8, 2018 -- Pernix Therapeutics Holdings, Inc. (NASDAQ: PTX), a specialty pharmaceutical company, announced today its financial results for the three and nine months ended September 30, 2018.

Third Quarter 2018 Financial Highlights

  • The third quarter of 2018 represented the first quarter that fully consolidated the financial results of Nalpropion™ Pharmaceuticals, Inc., which are discussed in more detail below.
  • Third quarter 2018 net revenues were $37.2 million, an 8% decrease from $40.5 million in the third quarter of 2017.
  • Net loss for the third quarter of 2018 was $11.8 million, as compared to net income of $6.4 million in the prior year period.
  • Third quarter 2018 adjusted EBITDA was ($0.7) million, as compared to adjusted EBITDA of $11.6 million in the third quarter of 2017.

Business Update

  • Nalpropion Pharmaceuticals, Inc., capitalized by Pernix and two leading investment management firms, acquired certain assets of Orexigen® Therapeutics, Inc., including worldwide rights to Contrave®, a market-leading, prescription-only weight loss medication, for $73.5 million.
    • Pernix generated net revenues of $16.4 million related to approximately two months of sales of Contrave in the third quarter of 2018.
  • Zohydro® ER total prescriptions (TRx) increased 7% year-over-year in the third quarter of 2018.
  • On August 1, 2018, Pernix announced that it had entered into a series of transactions aimed at strengthening its balance sheet and improving financial flexibility:
    • The exchange of approximately $4.2 million aggregate principal amount of Senior Secured Notes plus accrued and unpaid interest thereon by the Exchange Holders for 1,854,980 shares of the Company's Common Stock.
    • The exchange of $8 million aggregate principal amount of Senior Secured Notes, plus a portion of accrued and unpaid interest thereon, by certain Exchange Holders for 81,000 shares of the Convertible Preferred Stock.
    • In addition, the Exchange Agreement permits additional exchanges until February 1, 2020, at the option of certain Exchange Holders, of approximately $65 million aggregate principal amount of Senior Secured Notes for Convertible Preferred Stock.
  • Appealed ruling in patent litigation concerning Zohydro ER with BeadTek™ following the United States District Court for the District of Delaware decision that found the asserted claims of U.S. Patent Nos. 9,265,760 and 9,339,499, which relate to methods of treating patients with mild and moderate hepatic impairment with hydrocodone bitartrate, to be infringed, but invalid.

"We are focused on stabilizing our business and laying the foundation for growth," said John Sedor, Chairman and Chief Executive Officer of Pernix Therapeutics. "Zohydro ER generated its third consecutive quarter of year-over-year net revenue growth in the third quarter. In addition, we view Contrave as a critical element of our strategic plan. We are pleased with the initial results from Contrave, which is the market-leading branded weight loss prescription drug. Contrave sales were $16.4 million in the third quarter, which included only two months of sales from this product."