Pernix Therapeutics Holdings Inc
Pernix Therapeutics — Corporate Update (July 2017)
27 slides from Pernix Therapeutics's corporate update, Jul 20, 2017
Slide 1: PTX Strategic Update June 2017
PTX Strategic Update June 2017
Slide 2: Table of Contents
2 Table of Contents ▪ Zohydro ER Update ▪ Other Product Updates ▪ Updated Summary Forecast ▪ Proposed Transaction Overview ▪ Appendix
Slide 3: Zohydro ER Update
PERNIXG THERAPEUTICS Zohydro ER Update
Slide 4: Zohydro ER PPD Pilot
4 Zohydro ER PPD Pilot • PPD for Zohydro ER provides eligible commercially insured patients their first Zohydro ER prescription for $0 and either $0 or $20 for subsequent prescriptions based on coverage with the intent of no medication gap • Pilot will be comprised of 1 sales specialist and 3 HCPs f
Slide 5: Opioid Market
5 Opioid Market Total Market: 199M TRx Total Market: 18M TRx Hydrocodone 43.0% (85.4) Oxycodone 26.0% (51.6) Tramadol 20.0% (39.7) Codeine 7.0% (13.9) Other 4.0% (7.9) Fentanyl 26.0% (4.6) Oxycodone 24.0% (4.2) Buprenorphine 4.0% (0.7) Hydrocodone 1.0% (0.2) Morphine 37.0% (6.5) Other 8.0% (1.4) Sou
Slide 6: Zohydro ER Source of Business
6 Zohydro ER Source of Business • Primary source of business for Zohydro ER is patients on IR hydrocodone • Physicians prefer to stay within the same molecule when switching a patient from an IR to an ER therapy or adding on an ER therapy • TRx data indicates that 50% of Zohydro ER new patient start
Slide 7: Zohydro ER Positioning
7 Zohydro ER Positioning Positioning / Messaging • Trusted hydrocodone, in a unique ER formulation, for a simple 1:1 conversion from IR hydrocodone • True 12 - hour dosing allows more consistent pain relief • Demonstrated pain control and tolerability with no pattern of end - of - dose failure (“EOD
Slide 8: Enhanced IP Portfolio for Zohydro ER
8 Enhanced IP Portfolio for Zohydro ER • Formulation patents expire in 2019 • Teva /Actavis litigation resolved that Teva /Actavis’ proposed generic version infringes upon Patents 9,132,096 and 6,902,742, and cannot sell its product prior to the expiration of the two patents (2034 at the earliest) (
Slide 9: Realigned Sales Force Driving Growth
9 Realigned Sales Force Driving Growth Zohydro Target & Non - Target Market Share Zohydro TRx Target Split • Zohydro ER Target market share is growing to all - time highs post - realignment • Zohydro ER Non - Targets are also showing market share growth 74% 26% % of Zohydro ER TRx Pain Target Non-Ta
Slide 10: ER Hydrocodone Competitive Landscape
10 ER Hydrocodone Competitive Landscape Note : (1) Not recommended for severe impairment Company Product Zohydro ER Hysingla® ER Vantrela TM ER Stage Marketed Marketed Approved (1/18/17) Dosing Regiment Q12 Q24 Q12 ADL Claims Intranasal NA x x Intravenous NA x x Oral NA x x Hepatic Impairment Restri
Slide 11: Attributes Valued by Healthcare Professionals
11 Attributes Valued by Healthcare Professionals Healthcare Professional Survey – Importance of Attributes for Selecting Therapy (1) 70% 69% 67% 67% 48% 47% 41% 41% 39% 39% 36% 33% 33% 31% 31% 31% 23% 19% 17% 7.8 7.8 6.4 6.7 9.0 9.1 11.0 10.9 10.5 11.3 11.5 11.1 12.1 12.1 12.4 11.7 11.9 12.3 11.7 0%
Slide 12: Zohydro ER Well Positioned Among HCP
12 Zohydro ER Well Positioned Among HCP Healthcare Professional Survey – Product Performance (1) 13% 47% 55% 16% 47% 27% 59% 38% 58% 39% 19% 44% 46% 15% 52% 31% 61% 44% 50% 37% 16% 44% 44% 19% 31% 34% 38% 38% 47% 28% 6% 16% 38% 16% 78% 16% 63% 31% 47% 38% 39% 39% 41% 41% 47% 48% 67% 67% 69% 70% 0% 1
Slide 13: Update on Availability of Zohydro ER 20mg Strength
13 Update on Availability of Zohydro ER 20mg Strength The Company expects that the 20mg strength of Zohydro ER will be on back order until at least the first quarter of 2018 due to a manufacturing issue with its supplier Pernix continues to market and distribute the other strengths of Zohydro ER, in
Slide 14: Other Product Updates
PERNIX.. THERAPEUTICS Other Product Updates
Slide 15: Treximet Post-LOE Commercial Strategy
15 Frova Axert Imitrex Amerge®Zomig® Nasal Generic Entry 16-Apr 12-May 8-Nov 10-Jul 12-Apr # Generics 3 3 7 7 7 Brand WAC / Pill $67.00 $42.70 $55.41 $51.91 $82.79 Generic WAC / Pill $53.00 $33.00 $3.46 $11.00 $8.32 Generic WAC % of Brand 80% 77% 6% 21% 10% Net Price (AMP) % of Brand 21% 44% NA NA N
Slide 16: Treximet Post-LOE Molecule Growth – Triptans
16 Treximet Post - LOE Molecule Growth – Triptans Note : (1) Represents average of Amerge ®, Zomig® tablets, Axert®, Maxalt® tablets, Frova and Imitrex tablets (including generics ) ( 2) Estimated results based on Company assumptions. Please refer to the risks listed in the Company’s SEC filings for
Slide 17: Treximet Post-LOE Branded Pricing – Triptans
17 Treximet Post - LOE Branded Pricing – Triptans • Pricing of recent branded analogs post - LOE demonstrates an ability to exercise pricing power, but on reduced volumes • The Company conservatively assumes annual price increases of 9.9% each year post - LOE Average Price Increases Surrounding LOE:
Slide 18: Treximet Post-LOE Branded Market Share – Triptans
18 Treximet Post - LOE Branded Market Share - Triptans Note: ( 1) Represents average of Amerge®, Zomig® tablets, Axert®, Maxalt® tablets, Frova and Imitrex tablets (including generics ) (2) Brand Market Share calculated as Brand TRx / (Brand + Generic TRx ) (3) Estimated results based on Company ass
Slide 19: Silenor OTC Opportunity
19 Silenor OTC Opportunity Large Market Opportunity Product Opportunity • Potential to switch Silenor Rx to OTC for the treatment of occasional sleeplessness • Peak sales potential of approximately $150M, supported by market research • Two pre - IND FDA meetings held (latest in June 2015) providing
Slide 20: Updated Summary Forecast
PERNIX.. THERAPEUTICS Updated STE, Forecast
Slide 21: Summary Income Statement Forecast
21 2016A 2017E 2018E 2019E 2020E 2021E Treximet $82 $78 $34 $26 $28 $30 Zohydro ER 25 28 32 38 45 54 Silenor 17 23 27 35 12 10 All Other 32 25 24 23 21 20 Total Net Sales $156 $154 $118 $121 $106 $114 COGS (46) (42) (31) (28) (27) (28) Gross Profit $110 $112 $86 $93 $79 $86 % Margin 71% 73% 73% 77%
Slide 22: Pro Forma 2016 Adj. EBITDA
22 Pro Forma 2016 Adj. EBITDA 2016 Pro Forma Adj. EBITDA Bridge • Pro forma Adj. EBITDA represents Adj. EBITDA with the annualized benefit of the sales force re - alignment and adjustment for de - stocking of inventory • In 2015, the Company observed significant wholesaler inventory buildup in antic
Slide 23: Proposed Transaction Overview
Proposed Transaction Overview
Slide 24: Key Transaction Considerations
24 Key Transaction Considerations The Company is pursuing a transaction to meaningfully enhance its liquidity position while providing incremental capital to inves t i n new products that optimize Pernix’s growth engine for the future Key goals of the transaction: Refinance existing ABL facility Pro
Slide 25: Illustrative Straw Man Term Sheet
25 Illustrative Straw Man Term Sheet Note: ( 1) 10,015,641 basic shares outstanding as of 3/3/17 (2) Replacement ABL ▪ Convertible Noteholder provides new $40M replacement ABL to refinance existing ABL ▪ Borrowing Base Calculation: Similar to existing borrowing base structure under existing ABL − Re
Slide 26: Appendix
PERNIX.. THERAPEUTICS Appene
Slide 27: GSK Arbitration Overview
27 GSK Arbitration Overview GSK Arbitration Overview • In 2014, Pernix acquired Treximet from GSK and entered into two agreements: an APSA and a Supply Agreement • Key Issues: • GSK claimed that the Company breached its obligations under the APSA because it did not seek to reach a new, replacement r
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