Pernix Therapeutics Holdings Inc (NASDAQ:PTX)
Pernix Therapeutics is quite possibly the most interesting penny stock on the market today. While the stock is trading at well below a dollar per share, the potential surrounding this thing is tremendous. In fact, I've done quite a bit of research on the company and found 5 surefire reasons the stock will grow. Today, we'll talk about the 5 reasons I have a bullish opinion on PTX.
PTX IP Is Strong And Getting Stronger
One of the most important things that companies in the biotechnology sector must do is protect their intellectual property. Trademarks and patents make it possible to keep the competition at bay. When it comes to Pernix Therapeutics, we're talking about a company that has a strong list of patents and more coming down the line.
In fact, the company is currently waiting on word from the United States Patent Office with regard to several pending patents, about half a dozen of them.
In a recent press release, John Sedor, Chairman and Interim CEO at PTX, had the following to offer:
“The '499, '982, and the '201 patents, solely owned by Pernix, are a significant addition to the Orange Book, bringing the total number of Orange Book listed patents covering Zohydro ER with BeadTek to seven.... We continue to invest in this barnad and currently have a half dozen more patent applications pending relating to Zhydro ER with BeadTEK.”
Big Revenue To Come From The Sleep Industry
Another important thing to remember when investing in PTX is that the company's sleep treatment recently performed overwhelmingly well in a study. During the study, the company compared its treatment, Silinor 6mg, to the current standard of care, Zolpidem 10mg. The results of the study were that Silinor 6mg is the statistically superior treatment.
This was based on measures including arousability, balance, memory, and gait. One of the most important comparisons, however, came from the awakening threshold. In this area, Zolpidem 10mg displayed major concerns that are solved in Silinor 6mg. With regard to the study, Heith Durrence, Ph.D., Sleep Expert and Medical Director at Pernix, had the following to offer in a statement:
“One of the most interesting findings in the study was that a majority of subjects in the zolpidem group did not wake up until they were exposed to noise of at least 110 decibels... The awakening threshold data indicate that subjects taking zolpidem could have difficulty waking up to noises similar to a jackhammer, a potentially serious issue.”
Company Restructuring To Boost Sales
Another big piece of information that we've received with regard to PTX recently was the fact that the company is going through a restructuring process. Under the restructuring, the company will lay off about 23% of its work force. The company believes that combining neurology and pain management sales forces will lead to more efficient operations. Also, the company is restructuring payment plans as well as sales territories to create more efficiency with regard to the sales of its products.
In a statement, John Sedor, CEO at PTX, had the following to offer with regard to the restructuring plans:
“Since I took over the CEO duties at Pernix, we have been performing a thorough analysis of the specific market opportunities served by our products and how well they are addressed by our existing organizational structure. As part of this analysis it became clear that there were significant opportunities to optimize Pernix's field force to more efficiently cover the most productive physicians. The actions announced today are designed to improve productivity, instill a more result-based culture and enable Pernix to more effectively serve our customers.”
Institutional Demand Screams Buy
When researching PTX, one of the most interesting things that I found was that the company has an incredibly strong institutional demand. This isn't something we normally see when it comes to penny stocks. However, in this particular case, institutions seem sure that this thing is going to climb. In fact, about half of all outstanding shares are currently held between 124 institutions!
Possible Debt Restructuring
Finally, there is one thing that the company will need to address. This is debt. Unfortunately, in order to grow to become the company it is today, PTX took out a massive amount of debt. This is the one thing that the bears point to time and time again. Nonetheless, while the company hasn't released anything official, there have been rumors around the news outlets that a debt restructuring plan is coming soon. This could send the stock soaring. So, keep an eye on the news.