Pernix Therapeutics Holdings, Inc. (NYSE Amex: PTX), a specialty pharmaceutical company, today announced it has entered into a license and supply agreement with a private company for a new FDA-approved prescription product to treat gastroenterology disease. Under the terms of the agreement, Pernix obtained exclusive marketing rights to this gastroenterology product in the United States.
Cooper Collins, President and Chief Executive Officer of Pernix, said, "Our agreement to license a gastroenterology product represents an important milestone for the Company as we continue to execute on our business strategy focused on expanding our branded product portfolio into specialty areas beyond pediatrics. Prior to launching the product, we plan to establish a sales force of up to 30 representatives dedicated to gastroenterology. We expect to invest in the recruiting and training of this additional sales team, as we have invested in pediatrics. These investments, which continue to broaden and diversify our branded and generic businesses, are expected to drive the future growth of Pernix."
This new product is expected to be available in mid-year of 2012 and will be positioned as a first-line therapy in a niche market of more than $100 million annually in the U.S.
Under the terms of the agreement, Pernix paid an up-front license fee of $2.0 million and expects to pay an additional fee of $2.0 million upon commercial launch of the product. In addition to these license fees, the agreement calls for Pernix to pay royalties and milestone payments based on the sales of the product.
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