Pernix Therapeutics Holdings Inc (NASDAQ: PTX)
Pernix Therapeutics has been a very interesting stock to watch as of late. As with any experimental phase biotechnology company, we’ve seen quite a bit of volatility. Nonetheless, the company has quite a bit going for it. With an overwhelmingly positive sleep study, institutional investors are all over this stock. When it comes to low price experimental phase stocks, institutional demand is rare. Today, we’ll talk about the institutional demand, the recent sleep study, and what we can expect to see from PTX moving forward.
Trade smarter and make more money with Tradespoon!
Institutional Investors Love PTX
For many investors, watching the moves made by institutional investors is the way to go. After all, these institutions are responsible for massive amounts of money which represent a large number of customers. Therefore, when institutional investors make moves, you can bet that they are well-researched. So, it’s not uncommon for investors to follow on the coattails of institutions. As mentioned above, they seem to love Pernix.
When it comes to institutional investors, its rare to see large interest in stocks that are considered to be penny stocks. Many of these, like PTX don’t have approved products and are far away from profits. Nonetheless, institutions love this stock.
In fact, According to Yahoo! Finance, the majority of shareholders in the stock are actually institutional shareholders. At the moment, about 50% of outstanding shares of PTX are held between 124 different institutions. Some of the largest holders of the stock include Point 72 Asset Management, Stonepine Capital Management, venBio Select Advisor, Elk Creek Partners, Aisling Capital, Morgan Stanley, Broadfin Capital, Vanguard, and BlackRock. With these large institutions holding PTX, it’s hard to ignore the upside potential on the stock.
A Recent Sleep Study Is Exciting To Say The Least
It’s arguable that one of the bigger reasons that institutions are so interested in Pernix Therapeutics has to do with their work on the treatment of insomnia. For some time now, the company has been working on a treatment known as Silinor 6mg. In a recent study, PTX compared its treatment to one of the leading in the market, known as zolpidem 10mg.
According to a recent announcement, the study met its primary endpoint. Ultimately, PTX was working to prove that Silinor 6mg showed statistically significant improvements over zolpidem 10mg. This was based on several measures, including arousability, balance, memory, and gait. One of the most important factors was that, with zolpidem 10 mg, it would take noise of about 110 decibels to wake up the patient. This is the same amount of sound that is put off by a jackhammer. Considering that a jackhammer would need to be used right next to the patient’s head to wake them up, fire alarms and other alarms may not do the trick. This could be incredibly dangerous. However, that wasn’t the case with Pernix Therapeutics’ Silinor 6mg.
Along with the results of the study, we heard a compelling comment from Heith Durrence, Ph.D., a Sleep Expert and Medical Director at PTX. Here’s what he had to say:
“One of the most interesting findings in the study was that a majority of 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 difficult waking up to noises similar to a jackhammer, a potentially serious issue.”
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from Pernix Therapeutics. First and foremost, in the long run, I have to say that I’m expecting to see incredibly strong gains. With the positive sleep study and the company’s continued work in the area, I’m expecting that Silinor 6mg will eventually become approved and overwhelmingly profitable.
Nonetheless, it is also important to remember the risks here. While the company does have several approved products, it is still struggling on earnings. Nonetheless, with the new CEO in place, the company looks to be turning around as we speak!
Don’t waste your time! Click here to find winning trades in minutes!
What Do You Think?
Where do you think PTX is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
[Image Courtesy of Flickr]