Pernix Therapeutic Holdings (PTX) Stock: Should This Be In Your Portfolio?


Pernix Therapeutics Holdings Inc (NASDAQ:PTX) is having an incredible day in the market today. While you may expect that a press release dropped, or that news came out in another way, that’s not the case. It seems as though investors are simply motivated by the sheer excitement of PTX. Of course, our partners at Trade Ideas were the first to alert us to today’s gains. At the moment (11:11), the stock is trading at $5.28 per share after a gain of $0.60 per share (12.82%) thus far today.

Why Investors Are So Excited About PTX

It all started on May 1st, when a press release came out with what could be seen as bad news. Pernix Therapeutics announced that it has run into a manufacturing issue with regard to Zohydro ER pills. As a result, they would be on back order until at least the first quarter of 2018. While this could have been seen as an issue, investors looked at it as promising news, sending the stock toward the sky. The reason is relatively simple.

At the end of the day, Zohydro ER 20mg being off of the shelves wasn’t really a big deal. After all, the 10, 15, 30, 40 and 50mg versions of Zohydro ER are still available. So, any rational doctor with a patient that has a need for Zohydro ER 20mg would simply prescribe 2 Zohydro ER 10mg to the patient, giving that patient the exact same thing. So, at the end of the day, PTX wouldn’t lose sales volume as a result of this issue.

Investors Started Looking To The Positive

At the end of the day, since there really wasn’t much on the negative side of this press release, investors started to look toward the positives. Ultimately, there are three different ways investors started to look at the story.

  1. Takeover In The Works – Shortly after the press release was published, we started to notice comments on Twitter, StockTwits, and other social networks. Some were saying that this is a sign of an acquisition to come. Sedor is a master at building biotech companies to the point of acquisition, so it wouldn’t be a surprise.
  2. Demand Is Flying – Another scenario here would be that demand is flying dramatically for Zohydro 20mg pills. Of course, we know that there was an 11% year-over-year sales increase for the drug as a whole; 20mg may just be the big player here.
  3. Sedor Must Be Confident – The reality is that the CEO of the company, John Sedor, is a biotechnology mastermind. The guy has a history of making the right moves at the right times, yielding incredible value for investors in the company he controls. PTX is likely to be another great John Sedor moment, and this PR is evidence of that.

Final Thoughts

At the end of the day, PTX has a lot going for it. The CEO of the company is a mastermind in the industry, and due to hard work before he came along, leading to strong products, he’s got all the tools he needs in order to push this thing upward. Through restructuring, Sedor has streamlined the sales process and will likely continue to push PTX as it becomes a driving force in biotechnology.

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