Pernix appoints new CEO, sells $65M convertible bond

Pernix Therapeutics (PTX) has named pharmaceuticals industry veteran Doug Drysdale as CEO to replace Mike Pearce following a major investment by a group of institutional investors led by Athyrium Capital Management. Drysdale is also becoming chairman.

The consortium have agreed to purchase $65M of five-year convertible debt with a yield of 8%.

"Armed with a strong war chest, the company is well-positioned to acquire specialty pharmaceutical products to add to its portfolio," Drysdale says, adding that the firm will focus "less on primary care and more on specialty audiences."

Pernix has also agreed to pay Texas $12M to "settle all claims arising from certain actions by Cypress (Pharmaceuticals) prior to its acquisition by Pernix under the Texas Medicaid Fraud Protection Act." The amount is far less than a preliminary claim of $42M. Pernix will pay $1.3M to former Cypress shareholders over claims they made following Pernix's acquisition of Cypress.

Pernix's shares are +27%. (PR)

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