Pernix Therapeutics Holdings Inc (NASDAQ: PTX)
Pernix Therapeutics Holdings has been an incredibly interesting stock to follow as of late, and for good reason. Over the past few months, we’ve seen a CEO shakeup, the company has restructured, and there have been rumors of an acquisition. While acquisition rumors have been debunked thus far, there is a strong indication that the company is setting up to be sold. Unfortunately, without confirmed reports of this being the goal, there are tons of questions surrounding the stock. Is an acquisition likely? If an acquisition doesn’t happen, is the stock a good investment anyway? What can we expect to see from PTX moving forward? Today, I’ll do my best to answer all of these questions.
Trade smarter and make more money with Tradespoon!
Is An Acquisition Likely For PTX?
Recently, there have been several rumors surrounding a possible acquisition of Pernix Therapeutics. The most recent of these rumors was that Concordia had acquired the company. Of course, this rumor was debunked. However, there is still a strong belief among many investors that an acquisition is likely to come down the line. Is this a realistic concept?
In my opinion, the answer is yes. Much of the reason that I believe that an acquisition is likely at some point down the road has to do with the company’s new CEO and what he’s done since he came on board. John Sedor served as the interim CEO at PTX before recently stepping into the long-term position. Throughout his history, he has built a name for himself as someone that comes in to take companies over right before they are sold. His most recent acquisition centered on Cangene in February of 2014.
Since Sedor took control over PTX, he has made some very big moves. In fact, he has literally restructured the entire sales process. By combining two departments, he was able to reduce cost and increase efficiency. In the process, several employees – including top-level management – have been let go. At this point, Sedor is doing everything he can to make the company appealing, a common move before an acquisition.
What If An Acquisition Doesn’t Happen?
Recently, Pernix Therapeutics has been seeing declines in the market. Much of the downward movement can be blamed on a correction from recent highs, thanks to the fact that the acquisition news proved to be a rumor. This has led to another big question. If the company isn’t acquired, is it doomed for failure?
In my opinion, the answer is no. This also has a lot to do with the moves that Sedor has made. At the end of the day, since he stepped into the position as the long-term CEO, he has made changes that will better the company in the long run, regardless of an acquisition. With the neurology and pain salesforces combined, redundancies are left out of the sales process. This will likely lead to more successful efforts and stronger sales ahead. At the end of the day, Sedor has his mind set on making PTX great again. Historically, when this man has his mind set on something, the goal gets accomplished. I’m expecting to see no different in the case of Pernix.
What I’m Expecting To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of PTX. At the end of the day, Sedor is positioning the company well for a possible acquisition. However, even if an acquisition doesn’t happen, the changes he has made will likely lead to growth. All in all, I’m expecting to see gains ahead.
Don’t waste your time! Click here to find winning trades in minutes!
What Do You Think?
Where do you think PTX is headed moving forward? Join the discussion at TalkTRENDZ!
[Image Courtesy of Pixabay]