Pernix Therapeutics Holdings Inc (NASDAQ: PTX)
Pernix Therapeutics has been a very interesting stock to watch as of late. As with most stocks, there are plenty of people on both sides of the fence here. Nonetheless, I see big gains in the company’s future. Recently, we’ve seen a couple big pieces of news that point to gains, and institutional investors are noticing. Today, we’ll talk about three reasons that you should consider buying PTX.
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Reason #1: PTX Is Capable Of Protecting Its Intellectual Property
First and foremost, in the biotechnology space, intellectual property can mean the difference between success and failure. In the case of Pernix Therapeutics, the company has proven its ability to protect its intellectual property.
This was seen in a recent patent dispute with Gray Square Pharmaceuticals, LLC. Gray Square is a company that is focused heavily on generic pharmaceuticals. Recently, the company challenged a patent held by PTX. Nonetheless, the Patent Trial and Appeal Board of the United States Patent and Trademark Office denied Gray Square’s petition for inter partes review.
The patents in question surround Treximet, a treatment that is manufactured and sold by PTX. It was the goal of Gray Square to have the patent reviewed and lifted so that they could create a generic. Nonetheless, Pernix was able to hold off the wolves, making sure that there would be no generic competition until the patent expires in 2026. In a statement, the US Patent Trial and Appeal Board had the following to offer with regard to the situation:
“After considering the Petition and Preliminary Response, we determine that Petitioner has not established a reasonable likelihood of prevailing with respect to any of the challenged claims of the ‘193 patent. See 35 U.S.C. §314(a). Accordingly, we deny the Petition, and do not institute inter partes review.”
Reason #2: Positive Sleep Study
Not only has Pernix Therapeutics proven that it is capable of protecting its intellectual property, the company continues to work to come up with new treatments. In fact, the company recently released overwhelmingly positive data with regard to a sleep study.
During the Phase IV clinical study, PTX decided to compare Silinor 6mg to zolpidem 10mg in patients with insomnia. The goal was to show that Silinor 6mg showed statistically significant improvements over zolpidem 10mg. During the study, PTX was able to meet this primary endpoint. The company proved that their treatment, silenor 6mg, was the statistically superior treatment. The results were based on measures that included arousability, gait, balance, and memory. Silenor 6mg proved to beat zolpidem in all of these areas. In a statement, Heith Durrence, Ph.D., Sleep Expert and Medical Director at PTX, had the following to offer:
“One of the most interesting findings in the study was that a majority of the subjects in the zolpidem group did not wake up until they were exposed to noise of at least 110 decibels… The awakening threshold data indicate that subjects taking zolpidem could have difficulty waking up to noises similar to a jackhammer, a potentially serious issue.”
Reason #3: Follow Big Money
Finally, if creating positive treatments and protecting intellectual property isn’t enough for you, this might be. As investors, we often find ourselves following big money. Institutional investors often lead the charge. Well, let me tell you, institutional investors love Pernix Therapeutics.
I know, it sounds strange. The reality is that PTX is currently a penny stock. While that may not last long, it is what it is at the moment. At the end of the day, it’s incredibly rare to see large institutions investing in penny stocks. Nonetheless, they seem to be all over this one.
According to Yahoo! Finance, the vast majority of shareholders in PTX are institutional shareholders. When we look at the stats, we find that 50% of outstanding shares are held between 124 institutions. Some of the largest institutional shareholders include BlackRock, Vanguard, Broadfin Capital, Morgan Stanley, Aisling Capital, Elk Creek Partners, venBio Select Advisor, and Stonepine Capital Management. Not to mention, billionaire Steve Cohen, founder of Point72 Asset Management LP, recently increased his stake in Pernix Therapeutics as well.
The Bottom Line
The bottom line here is that when we talk about PTX, we’re not talking about the average penny stock. Instead, we’re talking about a company that has proven its ability to develop positive treatments. On top of that, the company has proven its ability to protect its property. So, it’s no wonder that billionaire investors and institutions are noticing the company. All in all, Pernix Therapeutics stock is likely headed up from here!
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What Do You Think?
Where do you think PTX is headed? Join the discussion at TalkTRENDZ from CNA Finance!