Up 31%: Why Pernix Therapeutics Surprised Investors

Shares of Pernix Therapeutics  (NASDAQ: PTX  ) soared 31% yesterday after the company revealed that it had bought the U.S. rights to GlaxoSmithKline's (NYSE: GSK  ) Treximet (which helps treat migraines in adults) for $250 million upfront (and some potential additional payments later). The importance of this purchase cannot easily be overstate for Pernix -- the company had $85 million in revenue last year, while Treximet on its own brought in $79 million -- and Pernix clearly sees some additional upside potential for the drug, whether it's through a potential indication expansion (to pediatric patients) or through synergies with Pernix's current salesforce.

Where could Pernix unlock additional value for the drug? In the video below, Motley Fool health care analysts Michael Douglass and David Williamson discuss Pernix's plans for the drug and how this deal jives with the company's current offerings.

Even with today's pop, can Pernix keep up with this top stock?
Great stocks don't just have a great day -- we're looking for a great long-term investment. And every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2958244, ~/Articles/ArticleHandler.aspx, 10/22/2014 12:02:37 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 16,639.28 24.47 0.15%
S&P 500 1,947.42 6.14 0.32%
NASD 4,432.34 12.86 0.29%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/22/2014 11:46 AM
POZN $8.43 Up +0.16 +1.93%
POZEN, Inc. CAPS Rating: **
GSK $44.57 Up +0.94 +2.15%
GlaxoSmithKline CAPS Rating: ****
PTX $9.07 Down -0.11 -1.20%
Pernix Therapeutic… CAPS Rating: No stars

Advertisement