Pernix Therapeutics Holdings Inc (PTX) Announces a Cost-Saving Initiative
Pernix Therapeutics Holdings Inc (NASDAQ:PTX) announced that, due to the impending loss of exclusivity of TREXIMET® (sumatriptan and naproxen sodium), the Company is reorganizing its commercial business, effective immediately, in order to focus its sales and marketing activities on Zohydro® ER with BeadTek™ (hydrocodone bitartrate) and Silenor® (doxepin). As part of this initiative, Pernix will reduce its total full-time work force by approximately 22 percent and will realign the sales organization into 74 sales territories that will focus on Zohydro ER and Silenor.
“We are taking these proactive measures in order to ensure that we are optimally positioned to maximize the long-term growth potential of our business,” said John Sedor, Pernix’s Chairman and Chief Executive Officer. “Zohydro ER is a critical component of our long-term growth strategy, as we possess a strong intellectual property portfolio around this product, which provides for a lengthy exclusivity period. As a result of the cost savings associated with this organizational realignment, Pernix is also in a better financial position to be able to leverage future acquisition and product opportunities.”
In connection with this commercial reorganization, Pernix expects to realize annualized cost savings of $7-$8 million beginning in the first quarter of 2018. The Company anticipates recording a one-time charge of approximately $1 million during the first quarter of 2018 as a result of this realignment.
Shares of Pernix Therapeutics are up nearly 3% to $2.79 in pre-market trading Friday. PTX has a 1-year high of $7.15 and a 1-year low of $2. The stock’s 50-day moving average is $2.61 and its 200-day moving average is $3.07.
Pernix Therapeutics engages in the research, development, and manufacture of biopharmaceutical products. It focuses on therapeutics for diseases on central nervous system, neurology, pain, and psychiatry. Its products include treatment of migraine pain and inflammation, insomnia, and depressive disorder. It distributes products under the following brands: Treximet, Silenor, Zohydro ER with BeadTek, and Khedezla.