MORRISTOWN, N.J., July 27, 2017 (GLOBE NEWSWIRE) -- Pernix Therapeutics Holdings, Inc. (NASDAQ:PTX), a specialty pharmaceutical company, today announced financial results for the three and six months ended June 30, 2017.

Second Quarter 2017 Financial Highlights:

• Second quarter 2017 net revenues were $34.3 million, a 15% increase sequentially from the $29.7 million recorded in the first quarter of 2017, and a 7% decrease from the $36.7 million in the second quarter of 2016
• Second quarter 2017 selling, general and administrative expense decreased by 25% to $19.0 million, as compared to the second quarter of 2016
• Net loss for the second quarter of 2017 was $21.6 million, as compared to a net loss of $31.1 million for the three months ended June 30, 2016
• Second quarter 2017 adjusted EBITDA improved to approximately $5.7 million from negative $1.4 million in the prior year period

Business Update

• Completed a series of refinancing transactions intended to improve liquidity, extend debt maturities and enable the Company to create value for stakeholders. Transactions included:
  -- A new $40 million asset-based revolving credit facility to refinance the Wells Fargo credit facility that was scheduled to mature on July 31, 2017
  -- A $45 million delayed draw term loan, including immediate access to $30 million and an additional $15 million available for certain acquisition purposes
  -- An exchange of approximately $52 million of 4.25% convertible senior notes owned by certain institutional investors for approximately $36 million of new exchangeable notes and approximately 1.1 million shares of the Company’s common stock
• After giving effect to the transactions closed on July 21, 2017, Pernix had approximately $63 million of total liquidity, including $42 million of cash and cash equivalents and $21 million available to draw under the new asset-based revolving credit facility
• Pernix and GSK agreed to an amended settlement agreement under which Pernix will pay approximately $6.7 million to GSK, which is a reduction of up to approximately $14.5 million from the initial settlement agreement
• Treximet TRx flat in the second quarter of 2017 as compared to the first quarter and down 7% year-over-year
• Silenor TRx up 1% in the second quarter of 2017 as compared to the first quarter and down 4% year-over-year
• Zohydro ER TRx down 3% in the second quarter of 2017 as compared to the first quarter and down 7% year-over-year; growth rate was impacted by the previously announced 20mg backorder

“We are pleased to have now closed the recently announced transformative transactions that have fortified our balance sheet, enabling us to focus on growing our business from this point forward,” said John Sedor, Chairman and Chief Executive Officer of Pernix Therapeutics. “Additionally, the agreement reached with GSK helps to deleverage the Company and provides us with additional financial flexibility moving forward. We view these transactions as the successful culmination of our previously announced strategic review. With the strategic review now complete, Pernix is solely focused on furthering the progress achieved over the last year. Most importantly, we now have access to capital to help us expand and diversify our product portfolio, drive net sales, improve profitability and maximize cash flow. We intend to pursue an aggressive, yet disciplined business development strategy with the goal of transforming our business over the next two years.”

Financial Results

Three-Months Ended June 30, 2017 vs. June 30, 2016
For the second quarter of 2017, net revenues were $34.3 million, a 7% decrease from the $36.7 million in the second quarter of 2016 and a 15% increase sequentially from the $29.7 million recorded in the first quarter of 2017.

Treximet revenues decreased by $1.0 million, or 6%, during the three months ended June 30, 2017, compared to the three months ended June 30, 2016, due primarily to a decrease in sales volume.

Zohydro ER revenues increased by $0.6 million, or 10%, during the three months ended June 30, 2017, compared to the three months ended June 30, 2016. The increase was due to an increase in sales volume, which was partially offset by lower net price.

Silenor revenues increased by $1.0 million, or 24%, during the three months ended June 30, 2017, compared to the three months ended June 30, 2016. The increase was due primarily to an increase in sales volume, which was partially offset by lower net price.

Other net product revenues decreased by $2.9 million, or 33%, during the three months ended June 30, 2017, compared to the three months ended June 30, 2016. The decrease was due primarily to lower sales in the Company’s generic products portfolio and Pernix’s decision to cease sales of certain less profitable products.

Cost of product sales decreased by $1.7 million, or 14%, during the three months ended June 30, 2017, compared to the three months ended June 30, 2016. The decrease in cost of product sales was due primarily to a reduction in inventory obsolescence costs of $1.0 million, as well as a reduction in product costs due to product mix.

Selling, general and administrative expense decreased by $6.5 million, or 25%, during the three months ended June 30, 2017, compared to the three months ended June 30, 2016. The decrease was driven primarily by lower selling and marketing expenses as a result of the restructuring of the Company’s sales force and operations, which was implemented in the third quarter of 2016, as well as reduced legal costs.

Research and development expense decreased by $2.4 million during the three months ended June 30, 2017, compared to the three months ended June 30, 2016. The decrease was related to lower spending on Treximet and Zohydro research projects.

Six-Months Ended June 30, 2017 vs. June 30, 2016

For the six months ended June 30, 2017, net revenues were $64.1 million compared to $69.2 million for the six months ended June 30, 2016, a decrease of 7%.

Treximet revenues decreased by $3.5 million, or 10%, during the six months ended June 30, 2017, compared to the six months ended June 30, 2016, due primarily to lower sales volume and net price.

Zohydro ER revenues increased by $0.3 million or 3% during the six months ended June 30, 2017 compared to the six months ended June 30, 2016. The increase was due to an increase in sales volume, which was partially offset by lower net price.

Silenor revenues increased by $0.9 million, or 12%, during the six months ended June 30, 2017, compared to the six months ended June 30, 2016. The increase was due to an increase in sales volume, which was partially offset by lower net price.

Other net product revenues decreased by $2.7 million, or 17%, during the six months ended June 30, 2017, compared to the six months ended June 30, 2016. The decrease was due primarily to lower sales in the Company’s generic products portfolio and Pernix’s decision to cease sales of certain less profitable products.

Cost of product sales decreased by $2.9 million, or 12%, during the six months ended June 30, 2017, compared to the six months ended June 30, 2016. The decrease in cost of product sales was due primarily to a reduction in inventory obsolescence costs of $1.8 million, as well as a reduction in product costs due to product mix.

Selling, general and administrative expense decreased by $12.1 million, or 24%, during the six months ended June 30, 2017, compared to the six months ended June 30, 2016. The decrease was driven primarily by lower selling and marketing expenses as a result of the restructuring of the Company’s sales force and operations, which was implemented in the third quarter of 2016, as well as reduced legal costs.

Research and development expense decreased by $2.8 million during the six months ended June 30, 2017, compared to the six months ended June 30, 2016. The decrease was related to lower spending on Treximet and Zohydro research projects.

Net loss was $51.1 million for the six months ended June 30, 2017, compared to $57.1 million in the same period last year.

Adjusted EBITDA was $5.4 million for the six months ended June 30, 2017, compared to adjusted EBITDA of negative $5.9 million for the six months ended June 30, 2016, or an improvement of $11.3 million.

Liquidity

As of June 30, 2017, the Company had cash and cash equivalents of approximately $14.3 million, compared to $36.4 million at December 31, 2016.

Subsequent to the end of the second quarter of 2017, Pernix closed a series of transactions on July 21, 2017. After giving effect to these transactions, the Company had approximately $63 million of total liquidity, including $42 million of cash and cash equivalents and $21 million available to draw under the new asset-based revolving credit facility.

In addition, separately, on July 20, 2017, in order to help further improve its liquidity position, Pernix and GSK agreed to an amended settlement agreement under which Pernix will pay approximately $6.7 million to GSK, which is a reduction of up to approximately $14.5 million from the initial settlement agreement.

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.