Pernix Therapeutics Holdings Inc (NASDAQ: PTX) is having an overwhelmingly rough start to the trading session this morning after the company announced a patent ruling. Unfortunately, the ruling was a mixed one, concerning investors and sending the stock spiraling downward. Today, we’ll talk about:
- The patent ruling;
- what we’re seeing from PTX as a result; and
- what we’ll be watching for ahead.
PTX Announces Patnet Ruling
As mentioned above, Pernix Therapeutics is having an incredibly rough start to the trading session this morning after the company announced a mixed patent ruling. In a press release, the company said that in the patent infringement case against Alvogen Malta Operations, the ruling came in as infringed, but invalid. Essentially, this means that Alvogen Malta Operations did infringe on patent numbers 9,265,760 and 9,339,499. However, the infringement was deemed to be invalid for compensation and more importantly, the company can continue to act as it is.
As a result of the decision, Zohydro ER with BeadTek, a very important product for PTX, may soon have generic competition. Unfortunately for the company, Alvogen will have the ability to launch a generic product in competition should it make it through FDA approval. This also opens the door for more competition as Activis Laboratories announced in January of this year that it may be considering the development and eventual launch of a generic version of Zohydro ER.
What We’re Seeing From The Stock
One of the first things we learn when we start to dig into the market is that the news leads to moves. When it comes to Pernix Therapeutics, the news was anything but positive. Unfortunately, low-price generic competition is likely coming for the company’s flagship product. So, it comes as no surprise that upset investors are reacting by sending the stock spiraling down. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:34) PTX is trading at $1.20 per share ater a loss of $0.15 per share or 10.77% 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 flagship product and the competition for it that may be on the horizons. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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