Anticipated Cost Savings of $7-$8 Million
MORRISTOWN, N.J., Jan. 05, 2018 (GLOBE NEWSWIRE) -- Pernix Therapeutics Holdings, Inc. (NASDAQ:PTX), a specialty pharmaceutical company, today announced that, due to the impending loss of exclusivity of TREXIMET® (sumatriptan and naproxen sodium), the Company is reorganizing its commercial business, effective immediately, in order to focus its sales and marketing activities on Zohydro® ER with BeadTek™ (hydrocodone bitartrate) and Silenor® (doxepin). As part of this initiative, Pernix will reduce its total full-time work force by approximately 22 percent and will realign the sales organization into 74 sales territories that will focus on Zohydro ER and Silenor.
“We are taking these proactive measures in order to ensure that we are optimally positioned to maximize the long-term growth potential of our business,” said John Sedor, Pernix’s Chairman and Chief Executive Officer. “Zohydro ER is a critical component of our long-term growth strategy, as we possess a strong intellectual property portfolio around this product, which provides for a lengthy exclusivity period. As a result of the cost savings associated with this organizational realignment, Pernix is also in a better financial position to be able to leverage future acquisition and product opportunities.”
In connection with this commercial reorganization, Pernix expects to realize annualized cost savings of $7-$8 million beginning in the first quarter of 2018. The Company anticipates recording a one-time charge of approximately $1 million during the first quarter of 2018 as a result of this realignment.
About Pernix Therapeutics
Pernix Therapeutics is a specialty pharmaceutical business with a focus on acquiring, developing and commercializing prescription drugs primarily for the U.S. market. The Company is currently focused on the therapeutic areas of Neurology and Pain, and has an interest in expanding into additional specialty segments. The Company promotes its branded products to physicians through its internal sales force and markets its generic portfolio through its wholly owned subsidiaries, Macoven Pharmaceuticals, LLC and Cypress Pharmaceutical, Inc.
To learn more about Pernix Therapeutics, visit www.pernixtx.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions are forward-looking statements. These statements reflect the Company’s current views, expectations and beliefs concerning future events. In addition, any financial projections, statements related to Pernix’s future strategy and performance and other estimates related to the expected costs and savings associated with reorganization contained herein are forward-looking statements with respect to the anticipated performance of the Company. Such financial projections, statements and estimates are as to future events and are not to be viewed as facts, and reflect various assumptions of management of the Company and are subject to significant business, financial, economic, operating, competitive and other risks and uncertainties and contingencies (many of which are difficult to predict and beyond the control of the Company) that could cause actual results to differ materially from the statements included herein. The inclusion of forward-looking statements should not be regarded as a representation by Pernix that any of its plans will be achieved. Investors should note that many factors, including the risks and uncertainties inherent in Pernix’s business, as more fully described in Pernix’s filings with the SEC (including, but not limited to, its Annual Report on Form 10-K for the year ended December 31, 2016, its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017, its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 and subsequent filings with the SEC), could affect the Company’s future financial results and could cause actual results to differ materially from those expressed in forward-looking statements, such as those contained in this press release. The forward-looking statements in this press release are qualified by risk factors identified by the Company. These risk factors, individually or in the aggregate, could cause our actual results to differ materially from expected and historical results. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.
LifeSci Advisors, LLC
Pernix Therapeutics Holdings, Inc.