Pernix Therapeutics Holdings Inc. (PTX, Financial) filed Quarterly Report for the period ended 2010-09-30.
Pernix Therapeutics Holdings Inc. has a market cap of $92.6 million; its shares were traded at around $3.75 . PTX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Our net cash provided by operating activities for the nine months ended September 30, 2010 and 2009 was approximately $2,068,000 and $5,371,000, respectively.
On June 21, 2010, Pernix purchased the remaining 50% ownership interest in Gaine from certain employees of Kiel Laboratories, Inc. As a result of the transaction, Gaine became a wholly-owned subsidiary of Pernix. Pernix has the exclusive rights to certain products and product candidates developed through patents and licenses held by Gaine, and Gaine s single source of income has historically been solely from royalties paid by Pernix. In consideration for the sellers 50% ownership interest in Gaine, Pernix is required to pay the sellers as follows: (i) an aggregate of $500,000 in cash was paid at closing, (ii) an aggregate of $500,000 in cash was paid on October 31, 2010, and (iii) an aggregate of $1,000,000 in cash or Pernix common stock to be paid on January 31, 2011, all subject to certain adjustments for outstanding royalties and obligations owed at the time of closing. Additionally, in the event a new drug application is approved by the United States Food and Drug Administration (the “FDA”) for one of Pernix s antitussive product candidates incorporating the invention claimed in a United States patent owned by Gaine, Pernix will then be obligated to pay the sellers an aggregate of $10,000,000 in cash or Pernix common stock.
Pernix s net sales consist of net product sales and collaboration revenue from co-promotion and other revenue sharing agreements. Pernix recognizes product sales net of estimated allowances for product returns, discounts, customer chargebacks and rebates and Medicaid rebates. The primary factors that determine Pernix s net product sales are the level of demand for Pernix s products, unit sales prices, the applicable federal and supplemental Medicaid rebates, and the amount of sales adjustments that Pernix recognizes. In addition to our own product portfolio, we have entered into co-promotion agreements and other revenue sharing arrangements with various parties in return for commissions or percentages of revenue on the sales we generate or on the sales they generate. As of September 30, 2010, we had seven collaboration arrangements, excluding the development agreement and the Zema Pak co-promotion agreement with Macoven which is consolidated subsequent to September 8, 2010 (see Note 4 to Pernix s Consolidated Financial Statements for the three and nine months ended September 30, 2010 and 2009 contained in Part I, Item I of this Form 10-Q). Four of these agreements are revenue sharing arrangements for products that we market for others and three are for products that we have developed or to which we own the rights but have contracted the marketing to others. The total revenue from co-promotion agreements was approximately $274,000 and $681,000 for the three and nine months ended September 30, 2010.
As of September 30, 2010, Macoven has launched five Pernix-based generic products. Collaboration revenue from the sales of these products was approximately $64,000 and $641,000 for the periods July 1, 2010 through September 8, 2010 and January 1, 2010 through September 8, 2010, respectively. Subsequent to September 8, 2010, this revenue/expense is eliminated in consolidation (see Note 4 to Pernix s Consolidated Financial Statements for the three and nine months ended September 30, 2010 and 2009 contained herein). We did not recognize any collaboration period for the nine months ended September 30, 2009.
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Pernix Therapeutics Holdings Inc. has a market cap of $92.6 million; its shares were traded at around $3.75 . PTX is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our sales force, which consists of 55 full-time sales representatives, 3 regional sales directors and 2 national sales directors as of November 10, 2010, promotes our products in approximately 30 states in the U.S. In addition to our sales team, our corporate staff includes two executive officers, four senior managers and five administrative staff. Our sales management team consists of pharmaceutical industry veterans experienced in management, business development, and sales and marketing, and has an average of nine years of sales management experience. In June 2010, we added 21 new sales representatives and, subsequent to September 30, 2010, added four additional sales representatives. For the three months ended September 30, 2010 and 2009, our net sales were approximately $7,779,000 and $5,825,000 and our income before income taxes and non-controlling interest was approximately $3,248,000 and $1,106,000, respectively. For the nine months ended September 30, 2010 and 2009, our net sales were approximately $21,010,000 and $19,574,000 and our income before income taxes and non-controlling interest was approximately $7,866,000 and $6,647,000, respectively.Our net cash provided by operating activities for the nine months ended September 30, 2010 and 2009 was approximately $2,068,000 and $5,371,000, respectively.
On June 21, 2010, Pernix purchased the remaining 50% ownership interest in Gaine from certain employees of Kiel Laboratories, Inc. As a result of the transaction, Gaine became a wholly-owned subsidiary of Pernix. Pernix has the exclusive rights to certain products and product candidates developed through patents and licenses held by Gaine, and Gaine s single source of income has historically been solely from royalties paid by Pernix. In consideration for the sellers 50% ownership interest in Gaine, Pernix is required to pay the sellers as follows: (i) an aggregate of $500,000 in cash was paid at closing, (ii) an aggregate of $500,000 in cash was paid on October 31, 2010, and (iii) an aggregate of $1,000,000 in cash or Pernix common stock to be paid on January 31, 2011, all subject to certain adjustments for outstanding royalties and obligations owed at the time of closing. Additionally, in the event a new drug application is approved by the United States Food and Drug Administration (the “FDA”) for one of Pernix s antitussive product candidates incorporating the invention claimed in a United States patent owned by Gaine, Pernix will then be obligated to pay the sellers an aggregate of $10,000,000 in cash or Pernix common stock.
Pernix s net sales consist of net product sales and collaboration revenue from co-promotion and other revenue sharing agreements. Pernix recognizes product sales net of estimated allowances for product returns, discounts, customer chargebacks and rebates and Medicaid rebates. The primary factors that determine Pernix s net product sales are the level of demand for Pernix s products, unit sales prices, the applicable federal and supplemental Medicaid rebates, and the amount of sales adjustments that Pernix recognizes. In addition to our own product portfolio, we have entered into co-promotion agreements and other revenue sharing arrangements with various parties in return for commissions or percentages of revenue on the sales we generate or on the sales they generate. As of September 30, 2010, we had seven collaboration arrangements, excluding the development agreement and the Zema Pak co-promotion agreement with Macoven which is consolidated subsequent to September 8, 2010 (see Note 4 to Pernix s Consolidated Financial Statements for the three and nine months ended September 30, 2010 and 2009 contained in Part I, Item I of this Form 10-Q). Four of these agreements are revenue sharing arrangements for products that we market for others and three are for products that we have developed or to which we own the rights but have contracted the marketing to others. The total revenue from co-promotion agreements was approximately $274,000 and $681,000 for the three and nine months ended September 30, 2010.
As of September 30, 2010, Macoven has launched five Pernix-based generic products. Collaboration revenue from the sales of these products was approximately $64,000 and $641,000 for the periods July 1, 2010 through September 8, 2010 and January 1, 2010 through September 8, 2010, respectively. Subsequent to September 8, 2010, this revenue/expense is eliminated in consolidation (see Note 4 to Pernix s Consolidated Financial Statements for the three and nine months ended September 30, 2010 and 2009 contained herein). We did not recognize any collaboration period for the nine months ended September 30, 2009.
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