SEC Filings

8-K
PERNIX THERAPEUTICS HOLDINGS, INC. filed this Form 8-K on 11/13/2018
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Financial Results
Pernix determined that Nalpropion qualifies as a Variable Interest Entity, or VIE, based on the governance structure and contractual relationship with Pernix, since Pernix has the power to direct activities that most significantly impact Nalpropion's economic performance. Pernix is therefore consolidating Nalpropion's financial results into its financial statements. On its income statement, Pernix adjusts, through a line entitled "Net gain or loss from non-controlling interests", for the amount of gain or loss associated with Nalpropion that is proportional to the amount of Nalpropion that Pernix does not own. In other words, 90% of the gains or losses are adjusted out of Pernix's Net Income / Loss. On the balance sheet, the net assets / liabilities that are attributable to other Nalpropion shareholders are adjusted out within shareholders equity in a line entitled "noncontrolling interests". For more detailed information see Note 4, Variable Interest Entity, to the Financial Statements of the Company's Quarterly Report on Form 10-Q for the Quarterly Period ended September 30, 2018.

Three Months Ended September 30, 2018 vs. September 30, 2017

For the third quarter of 2018, net revenues were $37.2 million, an 8% decrease from the $40.5 million in the third quarter of 2017. A summary of net revenues is outlined below:

      Three Months Ended            
Amounts in ($000's)     September 30,     Increase      
      2018     2017     (Decrease)     Percent
Net Revenues:                        
     Contrave   $ 16,418    $ -     $ 16,418      *
     Treximet     3,369      19,802      (16,433)     -83%
     Treximet AG     2,253      -       2,253      *
     Zohydro ER     6,655      6,305      350      6%
     Silenor     5,596      6,881      (1,285)     -19%
     Other products     2,586      7,372      (4,786)     -65%
Net product revenues     36,877      40,360      (3,483)     -9%
     Co-promotion and other revenue     279      109      170      156%
Total net revenues   $ 37,156    $ 40,469    $ (3,313)     -8%
* Not Meaningful                        

The increase in Contrave net revenues of $16.4 million during the three months ended September 30, 2018, is attributable to Nalpropion's acquisition of Orexigen, which closed on July 27, 2018.

Treximet® brand net revenues decreased by $16.4 million, or 83%, during the three months ended September 30, 2018, compared to the three months ended September 30, 2017, due to the loss of exclusivity of Treximet in February 2018, as Pernix experienced generic competition, including the Company's own authorized generic ("AG"), which was launched on February 15, 2018. Pernix expects that future Treximet brand revenues will continue to decrease year-over-year due to the loss of exclusivity.

Treximet AG net revenues were $2.3 million during the three months ended September 30, 2018. There were no sales in the prior year period, as Treximet AG was launched on February 15, 2018. The sales of Treximet AG in the first quarter of 2018 were $1.8 million, which included less than two months of sales, and were $3.0 million in the second quarter of 2018.