Pernix Therapeutics, Pozen, GlaxoSmithKline, CPP Investment Board deal

Pernix acquired from GlaxoSmithKline the U.S. rights to Treximet sumatriptan/naproxen to treat migraines for an upfront payment of $250 million. GSK had U.S. marketing rights from Pozen under a 2003 deal. Pernix will make a $3 million payment to CPP's CPPIB Credit Investments Inc. unit, which bought royalty and milestone rights associated with U.S. Treximet sales from Pozen in 2011. CPPIB will receive 18% royalties on net sales, with quarterly minimum royalty amounts of $4 million from 1Q15 to 1Q18. Pozen will regain rights to 20% of royalties on U.S. Treximet sales beginning in 2Q18. Pernix granted Pozen a warrant to purchase 500,000 Pernix shares at $4.28. The warrants expire on Feb. 28, 2018. Additionally, Pernix released restrictions on Pozen's rights to develop and commercialize additional dosage forms of sumatriptan/naproxen combinations outside the U.S., including the sumatriptan strength in Treximet. The deal is slated to close by Aug. 1(see BioCentury, June 16, 2003 & Dec. 5, 2011). ...