Pernix Therapeutics Holdings Inc (NASDAQ: PTX) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company reported its financial results for the fourth quarter showing strong improvement on a year over year basis. Of course, this led to excitement among investors, sending the stock toward the top. Today, we’ll talk about the results, what we’re seeing from the stock, and what we’ll be watching for with regard to PTX ahead.
PTX Reports Q4 Results
As mentioned above, Pernix Therapeutics is having an overwhelmingly strong start to the trading session this morning after reporting its financial results for the fourth quarter. Here’s what we saw from the report:
- Revenue – In terms of revenue, PTX definitely did not disappoint. During the quarter, the company generated net revenues in the amount of $41.5 million. That’s a massive 38% year over year increase from the $30.2 million that was reported in the fourth quarter of 2016. Not to mention, net revenues were hit with an impact of $15.3 million as a result of an arbitration ruling against PTX with Glas0SmithKline (GSK). Nonetheless, revenue in the quarter was strong.
- Net Loss – In terms of net loss, PTX did pretty well. During the quarter, the company reported a net loss of $32.4 million. That works out to a net loss of $2.78 per basic diluted share. This is yet another impressive increase over the results one year before. In the fourth quarter of 2016, the net loss came to $86.1 million or $8.92 per share.
In a statement, John Sedor, Chairman and CEO At PTX, had the following to offer:
Since I joined the Company in mid-2016, our business has improved considerably, and we are in a stronger operation position today… We have grown our revenues and adjusted EBITDA sequentially in each of the last three quarters and our overall performance has improved substantially over the past 18-months. Importantly, we nearly doubled adjusted EBITDA in 2017 to $29.2 million from $15.0 million in 2016.
Also, the series of refinancing transactions that we executed in July 2017 improved our liquidity, extended debt maturities and increased the Company’s financial flexibility. We ended the year with a solid cash position of $32.8 million and are focused on continuing to improve our operating performance, while also identifying in-licensing or acquisition candidates to further drive our business.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Pernix Therapeutics, the news proved to be overwhelmingly positive. After all, there’s nothing that excites investors quite like strong financial results. So, it’s no surprise to see that the stock is making a run for the top in the pre-market. At the moment (7:18), PTX is trading at $3.09 per share after a gain of $0.19 per share or 6.55% thus far today.
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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 generic sales of Treximet following the announcement of an approved generic version. We’re also watching Zohydro closely as the asset is highly protected through the company’s IP portfolio. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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