Pernix Therapeutic Holdings, Inc. (NASDAQ:PTX) Prevails in Patent Lawsuit

Pernix Therapeutic Holdings, Inc. (NASDAQ:PTX)

Pernix Therapeutic Holdings, Inc. (NASDAQ:PTX) shares are trading in very large volumes today. Avergae daily volume is just short of 400,000 shares but today over 19 million shares have traded hands. PTX shares have gained over 20% and are trading around $3.30 at 2:30 PM EST.

Pernix Therapeutic Holdings, Inc. (NASDAQ:PTX) a specialty pharmaceutical company with a focus on Pain and CNS conditions, announced today that it received a favorable opinion in its litigation with Actavis Laboratories FL, Inc. regarding a proposed generic version of Zohydro ER. Judge Gregory M. Sleet of the United States District Court for the District of Delaware concluded that Actavis’ proposed generic versions of Zohydro ER infringe on two patents licensed by Pernix. The Judge has entered an order enjoining Actavis from engaging in the commercial manufacture, use, offer to sell, or sale in the United States, or importation into the United States of Actavis’ Abbreviated New Drug Application (ANDA) product prior to expiration of the two patents. The two patents are listed in the FDA’s “Orange Book” for Zohydro ER and are licensed to Pernix Therapeutic Holdings, Inc. (NASDAQ:PTX) by Recro Gainesville LLC.

Pernix Therapeutic Holdings, Inc. (NASDAQ:PTX) is a specialty pharmaceutical business with a focus on acquiring, developing and commercializing prescription drugs primarily for the U.S. market. The Company targets underserved therapeutic areas such as CNS, including neurology and pain management, and has an interest in expanding into additional specialty segments. The Company promotes its branded products to physicians through its integrated Pernix sales force and markets its generic portfolio through its wholly owned subsidiaries, Macoven Pharmaceuticals, LLC and Cypress Pharmaceutical, Inc.

Two firms follow Pernix Therapeutic Holdings, Inc. (NASDAQ:PTX) and both rate PTX shares as a “Hold”. Sales for Pernix have been trending upwards since 2011 when the company posted a figure of $60.6 million and in 2015 that number improved to $176.9 million. EPS has been native for the past four years and for 2015 Pernix posted an eye-popping EPS loss of $27.82 in spite of hitting its highest ever net revenues. This was likely due to increased expenses related to the marketing of Treximet and increased depreciation and amortization expenses.

Ticker Symbol PTX
Last Price a/o 2:03 PM EST  $                      3.36
Average Volume                    392,800
Market Cap (mlns)  $                    26.77
Sales (mlns) $157.10
Shares Outstanding (mlns) 9.77
Share Float (mlns) 8.56
Shortable Yes
Optionable Yes
Inside Ownership 2.10%
Short Float 17.45%
Short Interest Ratio 3.8
Quarterly Return -21.71%
YTD Return 41.24%
Year Return 29.86%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20 year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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