Pernix Therapeutics Holdings Inc (NASDAQ: PTX) is having an incredibly strong day in the market this morning, and for good reason. The company announced the launch of an authorized generic version of one of their treatments. This led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the announcement, what we’re seeing from the stock, and what we’ll be watching for ahead.
PTX Announces The Launch Of A Generic Version Of Treximet®
As mentioned above, Pernix Therapeutics is having an incredibly strong day in the market today after announcing the launch of a generic version of Treximet. According to a press release issued by the company early this morning, the Treximet generic is being launched in the United States by the company’s subsidiary, Macoven Pharmaceuticals, LLC.
Treximet is a prescription medicine designed to treat acute migraine headaches with or without aura in patients 12 years of age or older. However, regardless of the launch of this generic, PTX said that it expects a significant decrease is sales of Treximet ahead. So, the announcement of the generic is great news. At the end of the day, while the generic version of Treximet will not yield the same amount of revenue, it will act as damage control by providing some revenue considering the significant reduction of sales that is expected. In a statement, John Sedor, CEO at PTX, had the following to offer:
The availability of both a branded and authorized generic version of Treximet demonstrates that Pernix continues to view Treximet as an important part of its business… Through our launch of an authorized generic version of Treximet, Pernix is providing patients and providers with access to a lower-cost treatment for acute migraine headaches.
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 this particular case, the news proved to be overwhelmingly positive. While Treximet sales were expected to decline, the generic version of the treatment will provide the company with a continued revenue stream. Of course, this led to excitement, sending the stock screaming for the top. At the moment (9:07), PTX is trading at $2.62 per share after a gain of $0.23 per share (9.62%) 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 story surrounding the company’s generic version of Treximet and the revenue that it provides. We’ll also be following the company surrounding the sales of other treatments, the movement on its pipeline, and the potential for a takeover. Don’t forget, John Sedor is in charge here! Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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