Pernix Therapeutics Holdings Inc (NASDAQ: PTX) is off to an incredibly strong start in the trading session this morning, and for good reason. On Thursday, news of a crackdown on those involved in the opioid epidemic in the United States broke, leading to excitement surrounding the stock, and sending it upward. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:32), PTX is trading at $5.13 per share after a gain of $0.37 per share or 7.77% thus far today. Below, we'll talk about what's going on with the opioid epidemic, why this is good for PTX, and what we'll be watching for ahead.
PTX Benefits From Opioid Crackdown
As mentioned above, Pernix Therapeutics is having a strong start to the trading session this morning as more news breaks with regard to the opioid epidemic in the United States. This time, the Justice Department announced a massive crackdown in which more than 400 people found themselves in some serious trouble for medical fraud.
Ultimately, the crackdown focused on doctors who prescribed what authorities believe to be unnecessary opioid related medications. The crackdown also focused on medical facilities that authorities believe preyed on addicts in order to make money, but in the process, worsening their conditions.
Why This Is Great News For Pernix
At first glance, it may seem as though this news has nothing to do with PTX. However, that notion couldn't be further from reality. The fact of the matter is that Pernix Therapeutics has Zohydro ER. For those of you who haven't been following Zohydro ER is a treatment designed to help manage pain. However, it is not an opioid-based treatment. Instead, PTX focused on creating a treatment that would combat pain without creating an addiction, and that's exactly what they've done.
Ultimately, as the opioid epidemic continues to grow in the United States, we're likely to see more and more doctors doing their best to give patients treatments that will not create addiction issues. Because Zohydro ER is one of those treatments, it only makes sense that while the authorities focus on the epidemic, PTX will start to see stronger sales.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PTX. In particular, we're interested in following the story surrounding the opioid epidemic crackdown and seeing how this news relates to stronger Zohydro ER sales. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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