Pernix Therapeutics Holdings Inc (NASDAQ: PTX) is off to an overwhelmingly strong start in the market today, and for good reason. It all has to do with a suit that was filed against the company’s larger competitors. Of course, this led to excitement among investors and gains in the stock. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:33), PTX is trading at $3.93 per share after a gain of $0.24 per share (6.50%) thus far today.
PTX Gains As Ohio AG Files Suit Against Competition
As mentioned above, Pernix Therapeutics is having an incredibly strong start in the trading session today after a suit has been filed against the company’s competition. The lawsuit was filed by Ohio’s Attorney General Mike DeWine, who says that Teva Pharmaceutical Industries (TEVA), Johnson & Johnson (JNJ), and Allergan triggered a “human tragedy of epic proportion.” We’ll get into why this is a great thing for PTX. However, before we do, here’s what DeWine had to offer…
We believe the evidence will show that these companies got thousands and thousands of Ohioans – our friends, our family members, our co-workers, our kids – addicted to opiod pain medications, which has all too often led to use of the cheaper alternatives of heroin and synthetic opiods…”
Why This Is Good For Pernix Therapeutics
At first glance, PTX may have little to benefit from this. However, that’s only the case if you’re not looking at the company’s flagship product, Zohydro® ER. Don’t forget, Zohydro ER has shown to be a great pain reliever with no threat of addiction. In fact, if we look back to statements surrounding clinical trials, we find Srinivas Nalamachu, MD, President and Medical Director of the International Clinical Research Institute in Overland Park, Kansas, who had the following to offer, which sums it up perfectly for PTX investors:
“Zohydro ER with BeadTek represents an advancement for clinicians and their patients living with, chronic pain, demonstrating effective relief over the 12-hour dose duration… Research demonstrated significant rates in pain reduction with no pattern of end-of-dose failure, as well as significantly improved disability scores in patients taking Zohydro ER with BeadTek.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on PTX as well as those listed in the suit in Ohio. At the end of the day, this could lead to a big shift in pain management, with Pernix being the key beneficiary. We’ll continue to follow the story closely and bring the news to you as it breaks!
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