Pernix Therapeutics, a specialty pharmaceutical company and a portfolio company of Aisling Capital, has entered into an agreement to acquire privately-owned generic pharmaceutical companies Cypress Pharmaceuticals and Hawthorn Pharmaceuticals for $101 million.
Pernix has received a commitment from MidCap Financial for a $60 million credit facility to support the transaction. MidCap Financial will serve as Sole Bookrunner, Administrative Agent and Joint Lead Arranger on this facility.
Hawthorn Pharmaceuticals offers an array of branded pharmaceutical products, including allergy, respiratory, iron deficiency, nephrology and pain management. Cypress Pharmaceuticals offers a range of generic pharmaceutical products in the areas of cough and cold, nutritional supplements, analgesics, urinary tract, women’s health, pre-natal vitamins and dental health. In 2012, revenues for Cypress and Hawthorn are expected to be approximately $50 million, consisting of approximately 54% generic products and 46% branded products. Cypress and Hawthorn, founded in 1993, are headquartered in Madison, MS and have 170 employees, including 115 sales representatives (www.cypressrx.com) (www.hawthornrx.com).
“This will be the most significant acquisition in the company’s history. The generic and branded businesses of Cypress and Hawthorn are an excellent fit for Pernix, which is expected to increase the company’s revenues for the full year 2013 to approximately $135 million to $145 million,” said Cooper Collins, President and CEO of Pernix. “The Cypress and Hawthorn pipeline, which includes products filed with the FDA or in development, will move us forward on our strategic plan to drive the company’s future success. We are enthusiastic about working with the Cypress and Hawthorn’s management team as we integrate our companies. We are confident that Pernix, Cypress and Hawthorn are an excellent combination that will provide strong growth in the future.”
Pernix Therapeutics is a specialty pharmaceutical company primarily focused on the sales, marketing, manufacturing and development of branded, generic and OTC pharmaceutical products. The company manages a portfolio of branded and generic products. Pernix markets its generic products through its wholly-owned subsidiary, Macoven Pharmaceuticals. The company’s wholly-owned subsidiary, Great Southern Laboratories, manufactures and packages products for the pharmaceutical industry in a wide range of dosage-forms. Founded in 1996, the company is based in The Woodlands, TX (www.pernixtx.com).
Aisling Capital makes investments in healthcare companies that require $20 million to $50 million or more of capital. The size of the investment is contingent upon the company’s stage of development, funding needs and risk profile. Aisling Capital will often participate in further rounds of financing following its initial investment. The firm is based in New York, NY (www.aislingcapital.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 11-14-12