Pernix Therapeutics Holdings Inc (NASDAQ: PTX)
Pernix Therapeutics was a very interesting stock to watch late last week, and for good reason. Rumors surfaced that Concordia Pharmaceuticals would be buying out the company, leading to an incredible bullish run. When the story came out, I did my best to track down the source and provide live updates on whether or not it was true. Unfortunately, it was all rumors. Nonetheless, just because the Concordia rumors proved to be just that, rumors, doesn’t mean that PTX isn’t going to be acquired. In fact, from where I’m sitting, it looks like an acquisition is just around the corner. Today, we’ll talk about the Concordia rumors and why I believe that the company is going to be acquired at some point, regardless of Concordia.
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Concordia Acquisition Of PTX Was Rumor
Late last week, I saw massive early morning gains in the value of Pernix Therapeutics. However, it seemed like nothing was released online about why. That is until I searched the StockTwits streams to see what investors had been saying. That’s where I found out that the gains were the result of a website known as Intereconomia starting rumors that PTX was going to be acquired. Throughout the day, I did some digging; I called all involved trying to get answers. At the end of the day, it was clear – the acquisition was just a rumor.
Why I Believe That An Acquisition Is Coming
While we all know that a Concordia acquisition isn’t going to happen (at least not any time soon), I do believe that an acquisition will happen at some point. The primary reason for this has to do with the CEO of the company and what he has been doing. John Sedor was appointed as the interim CEO at PTX some time ago. However, it was recently announced that he would be taking on the permanent leadership role.
When we look at Sedor, we see something interesting start to emerge. You see, he has a strong history in the biotechnology and pharmaceuticals space, with much of that history revolving around acquisitions. At the end of the day, it’s not uncommon for Sedor to take on the CEO role, make big changes to company structure, then sell the company to the highest bidder. If we look at Pernix Therapeutics, that’s exactly what we’re seeing.
Shortly after Sedor took on the role as the permanent CEO, we learned that a big restructuring effort was under way. PTX was going to work to combine the neurology and pain management sales forces in an attempt to clean out redundancies. In the process, there would be big changes made to senior management, which have already taken place.
At the end of the day, Sedor has already restructured PTX in a big way, making the company more appealing to any potential buyer. Not to mention, buyers are likely interested. Following the recent sleep study results revolving around Silenor 6mg and the restructuring plans, Pernix Therapeutics is likely trading at a steep discount. So, if a company wanted to acquire them, they’d need to act fast in order to get a good deal. All in all, it seems like Sedor is doing what he does best.
Why I’m Bullish On PTX Regardless Of The Acquisition Possibilities
Don’t get me wrong, I do believe that Pernix Therapeutics is in a great position to be acquired. However, even if an acquisition didn’t happen, I’d maintain my bullish opinion. The reason for this is relatively simple. With the changes that Sedor has made to the company, PTX now has a more streamlined sales process with a more focused sales team. This, combined with strong products in need of a little love, will likely send this stock soaring in the long run. The idea of an acquisition coming down the line is simply icing on the cake.
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What Do You Think?
Where do you think PTX is headed moving forward? Join the discussion at TalkTRENDZ!
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