Pernix Therapeutics Holdings, a specialty pharmaceutical company of The Woodlands, Texas, has entered into a definitive agreement to acquire Great Southern Laboratories, a privately-held pharmaceutical contract manufacturing company of Houston, Texas.

Pernix will pay $4.9 million to acquire substantially all of the assets of Great Southern Laboratories and assume certain liabilities. The assets include buildings and land located in Houston. Pernix anticipates completing this transaction in July 2012.

Pernix expects this acquisition to improve the company’s gross margins on currently-marketed generic products and to provide manufacturing capabilities for the development of its potential OTC and prescription products. Great Southern has an established pharmaceutical manufacturing facility with an existing base of customers in the pharmaceutical industry, which is expected to provide the Pernix with additional income and potential cost savings. Pernix said is committed to continuing contract manufacturing for Great Southern’s current customers.

“This acquisition of Great Southern is another important investment in the future growth of Pernix, which will enable us to develop products more rapidly and provide in-house product development expertise,” said Cooper Collins, president and CEO of Pernix. “We plan to utilize this facility to manufacture certain products currently marketed by Pernix, as well as future branded, generic and OTC products, as we continue to expand and diversify our product portfolio.”

Great Southern Laboratories, based in Houston, Texas, was established in 1980. For more than 30 years, the company has manufactured liquids, tablets, capsules, ointments and creams for pharmaceutical companies. Great Southern Laboratories’ revenues for the fiscal year ended June 30, 2011 were approximately $12 million.