Pernix Therapeutics Holdings Inc (NASDAQ: PTX)
Pernix Therapeutics Holdings is having a rough day in the market today, sending the stock further down from yesterday’s lows. The declines are happening for good reason. The President and CEO of the company has announced his resignation. Today, we’ll talk about the news, how the market is reacting, and what we can expect to see from PTX moving forward. So, let’s get right to it…
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PTX CEO Steps Down
Yesterday, it was announced that the current President and CEO of Pernix Therapeutics Holdings, Doug Drysdale, will be stepping down from his position. The decision comes after discussions with the board of directors and was effective on May 9th, 2016. Following Mr. Drysdale, John Sedor, a current Director at PTX, will be stepping in as Chairman of the Board and interim CEO of the company as the board searches for a permanent CEO to take control. In a statement, Sedor had the following to offer:
“On behalf of the Pernix Board of Directors and employees, we would like to thank Doug for his service to the company, and wish him success in his future endeavors. We recognize and appreciate Doug’s significant contributions to Pernix.”
The news that Doug Drysdale will be stepping down hit hard, especially when investors realized what this means for NASDAQ compliance. Due to the resignation of the CEO of the company, and the fact that Sedor will be taking the role on an interim basis, PTX is no longer in compliance with NASDAQ’s audit committee. According to NASDAQ, listed companies must have an audit committee of at least 3 members who are all independent. When John Sedor took on the role as Interim CEO, the company was only left with two independent directors serving as its audit committee. As a result, PTX has until November 5th to cure the issue or it will be booted from the NASDAQ!
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock. Adversely, negative news will generally lead to declines. In the case of Pernix Therapeutics, the news that was released definitely wasn’t positive. After all, the CEO of the company stepped down out of nowhere. In doing so, a new, interim CEO was named, opening problems for the company with regard to NASDAQ listing compliance. As a result, we saw big declines on PTX yesterday, and that downward movement seems to be continuing today. Currently (10:07), the stock is trading at $0.39 per share after a loss of $0.02 per share or 4.21% thus far today.
What We Can Expect To See Moving Forward
It’s a shame that all of this had to happen so quickly. After all, PTX recently won a patent decision that sent their stock soaring. However, following the news of the resignation, the stock is sitting back where it left off. At the moment, there are quite a few uncertainties revolving around Pernix Therapeutics Holdings, and the reality is that uncertainty leads to declines. With that said, I’m not expecting much by way of positive news out of PTX in the short run and I remain incredibly uncertain with regard to what we can expect to see in the long run. All in all, this is a stock that I wouldn’t bet on at the moment.
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What Do You Think?
Where do you think PTX is headed moving forward and why? Let us know your opinion in the comments below!
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