Pernix Therapeutics Holdings Inc (NASDAQ:PTX) Finally Settles its Court Case with Actavis

Pernix Therapeutics Holdings Inc (NASDAQ:PTX) has hit a purple patch recently.After heavy price fluctuations over the last year (which has been negative in the last couple of months), it has begun increase in value. News of a settlement of its pending court case with Actavis and the release of a new version of Treximet has gone some way to make this happen. In this piece, we give you details of the settlement and the release of its new product.First, take a look at the stock’s price action: PTX Daily ChartCompany ProfilePernix Therapeutics Holdings, Inc. was formed in 1996, and its office is located in New Jersey, USA. The company specializes in the research, development, and manufacture of pharmaceutical products. The firm is presently working on the therapeutic areas of Pain and Neurology, and other specialty areas. It focuses on treatment for ailments on psychiatry, pain, neurology and the central nervous system. Some of its merchandise includes the remedies for depressive disorder, insomnia, inflammation and migraine pain. Using some brands such as Zohydro ER, Silenor, Treximet etc and the firm is able to distribute its products to practitioners using its in-house sales team and markets its generic products with its fully owned subsidiaries, Cypress Pharmaceutical, Inc and Macoven Pharmaceuticals, LLC.Recent DevelopmentsIn January 2018, the firm reported that it had gone into a settlement contract with Actavis Laboratories FL to resolve the patent litigation which is related to Zohydro ER. The litigation came about due to the submission of an Abbreviated New Drug Application by Actavis for authorization from the FDA to sell a general variety of Zohydro ER. The case has been unresolved in the U.S. District Court for the District of Delaware.According to the agreement, PTX will provide Actavis with authorization to start marketing a general variety of Zohydro in March 2029 or before in specific situations. Other facts of the agreement remain unknown. The take-off of Actavis’s generic product is highly dependent on its receipt of final authorization from the FDA of its ANDA for a generic version of Zohydro ER.Some of our readers also gave their thoughts on the PTX, one commented saying:

“Enjoyed reading your take on Pernix and CEO John Sedor, was wondering your thoughts on the latest 8K regarding a generic version of Zohydro and if you’ll do a follow-up story anytime soon?PTX settled litigation with Actavis a week or two ago regarding patent infringement. It appears Recro Gainseville, maker of Zo also settled. I believe the only remaining litigation is with Alvogen regarding patent infringement as well. Funny how they can’t find a settlement being Doug Drysdale was CEO and helped build Alvogen and VP of Finance Glenn Whaley also worked there? Looks like something in the works with Zo and Actavis as they’ve been granted a license to sell in 2029 or sooner depending on FDA approval of ANDA.Looks like they’re going to sell some generic assets? You mentioned GSK might be interested in Silenor. It also looks like something else is in play here.I’m thinking GSK, TEVA, Actavis, and Alvogen want some piece of the pie.”

Our readers are welcome to provide their comments on the company.In the same month, the firm announced the unveiling of an approved generic variety of Treximet in the United States from Macoven Pharmaceuticals, LLC, the firm’s subsidiary. Treximet is a prescription drug which has naproxen in a patient who is less than 13 years old.CEO and Chairman of Pernix Therapeutics Holdings Inc. outlined that the accessibility to an approved and branded general type of Treximet establishes that Pernix continues to see the drug as a critical area of its trade. Through the set up this approved general type of Treximet, the firm is delivering less expensive treatment for acute migraine headaches to patients and physicians.In spite this launch, the firm anticipates a major fall in revenues from Treximet in the year.Financial PerformanceAccording to its statement of comprehensive income, the firm was unable to grow its revenues in 2016 as it dropped by 25% from the last period, dropping from $175.9 million to $140.9 million in the last year. Thankfully, the drop in revenues was similar to drop in the cost of sales, leading to only a 15% drop in gross profit. Due to the firm’s very high-interest expense, the trend of operating losses continues for the third straight year, rising from a loss of $0.5 million to $0.8 million. Net loss for the 2015 and 2016 was $148.3 million and $169.6 million respectively.The firm is highly leveraged with its liabilities are worth 3.7 times as much as its equity and 1.3 times as much as its assets. It, however, has stable liquidity level of 0.99 meaning that the firm has adequate liquidity to continue its business operations.ConclusionNews of the litigation settlement has been received well by the market and is likely to impact the firm’s value positively.We will be updating our subscribers as soon as we know more. For the latest updates on PTX, sign up below!Disclosure: We have no position in PTX and have not been compensated for this article.