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ARTICLE | Company News

Pernix acquires Zogenix's Zohydro franchise

March 11, 2015 1:34 AM UTC

Pernix Therapeutics Holdings Inc. (NASDAQ:PTX) will acquire the Zohydro ER analgesic franchise of Zogenix Inc. (NASDAQ:ZGNX). The franchise includes Zohydro ER, an oral controlled-release formulation of hydrocodone; Zohydro ER with BeadTek, an oral controlled-release formulation of hydrocodone that uses an inactive ingredient that deters abuse by forming a viscous gel when crushed and dissolved in solvents; and ZX007, an abuse deterrent tablet formulation.

Pernix will pay Zogenix $100 million up front, including $30 million in cash, $20 million in stock and a six-month promissory note for $50 million that accrues interest at Libor plus 3%. Zogenix is eligible for a $12.5 million milestone upon approval of ZX007 and $271 million in sales milestones. ...