Pernix Therapeutics Holdings, Inc. ("Pernix" or the "Company") (NASDAQ MKT: PTX), a specialty pharmaceutical company, today announced that it has closed on the sale of its Houston, TX-based manufacturing operations, Pernix Manufacturing, LLC ("PML") to Woodfield Pharmaceutical LLC ("Woodfield").
As previously announced, Woodfield acquired the entire PML operation and assumed the mortgage associated with the facility. Pernix received approximately $1.2 million in proceeds net of the assumed mortgage and working capital liabilities at closing and expects to realize approximately $5.0 million in annualized cost savings from the divestiture. As part of the agreement, Woodfield will continue to manufacture the existing Pernix products under a long-term supply agreement.
Commenting on the closing, Doug Drysdale, President and CEO of Pernix, said, "The closing on the sale of PML is an important part of our strategy to simplify operations and focus on the sales and marketing of our product portfolio. The operating cost savings from the divestiture are a significant contributor to returning a profit for Pernix in 2014. We look forward to working with Woodfield as a high quality contract manufacturer for Pernix products."
Adam Runsdorf, President of Woodfield Pharmaceutical, LLC, said, "We are pleased to complete the closing of the acquisition of PML and look forward to expanding the current platform of operations to serve existing and future customers with high quality contract manufacturing services."
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